Is this the end of the AI narrative?
The S&P 500 suffers a historic $2.9 trillion bleed after a massive wave of liquidations
Record market-cap loss
The
#SP500 shed approximately $2.9 trillion in a single day, marking the largest intraday destruction of market value in history.
Declines not seen since the COVID panic:
The PHLX Semiconductor Index (SOX) plunged 12.25% (-1,257.52 points), closing at 9,011.14—its worst day since March 2020.
The S&P 500 Technology Sector fell 7.3%, and the Nasdaq-100 (NDX) dropped 6.4%, breaking key support levels.
Trend breakdown and political factor: The Democrats’ landslide victory in the midterm elections raised alarm over possible harsh regulations or halts to the construction of AI data centers. On the charts, the SOX index broke below the long-term uptrend line that had supported the market since April 2025.
Cascade effect and forced liquidations (Margin Calls): The correction triggered massive deleveraging. Hedge funds and leveraged traders faced margin calls that forced them to sell positions en masse—not only in tech, but also in defensive sectors (healthcare and consumer staples) to cover losses.
VIX fear index explodes: The Cboe Volatility Index surged an impressive 69.7%, marking its biggest increase in two years and reflecting a clear phase of panic and capitulation across the broader market.
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