Dow plunges nearly 1,700 points, wiping out gains from midterm results stock rally

The Dow Jones Industrial Average plunged nearly 1,700 points on Thursday, wiping out all of the rally from a day earlier when midterm election results propelled the index to its best trading session in more than a year.

The S & P 500 dropped 3.94%, while the tech-heavy Nasdaq fell 5.1%, putting the index into correction territory, meaning it has fallen more than 10% from a previous peak last month.

The selloff hammered many artificial intelligence firms as investors appeared to digest risk for the sector posed by newly empowered Democrats, many of whom ran campaigns critical of artificial intelligence data centers.