Key takeaways
- The Nasdaq Composite dropped 5% on Thursday and fell into correction territory, off by more than 11% from its record high set last month.
- The iShares Semiconductor ETF dropped 11% on Thursday, its biggest decline since during the Covid breakout in March 2020.
- Josh Brown pointed to the 4.8% yield for the 10-year Treasury yield, saying a compelling risk-free rate is causing investors to reconsider taking the risk in these volatile AI stocks.
Amid a powerful rout in tech stocks, investors told CNBC on Thursday that something may be fundamentally breaking in the AI trade following the big success of Democrats in Tuesday's midterm elections and the threat they try to slow the data center buildout.
