BOSTON — The stock market took a steep dive Thursday amid a widespread sell-off in artificial intelligence stocks and new uncertainty following Tuesday’s election.
The tech-heavy Nasdaq took the biggest hit, dropping more than 5.5%.
“Big single-day moves, big volatility,” financial advisor Michael Armstrong, of Armstrong Advisory Group, said.
Armstrong said major swings are not necessarily unusual when investors are navigating a rapidly developing technology like artificial intelligence.
“It’s not atypical when you have a new revolutionary technology to be in one of these moments,” Armstrong said. “There’s shortages of everything you want to get your hands on initially.”
The market uncertainty also comes just days after Tuesday’s election, raising questions about whether Democratic victories could lead to increased scrutiny or delays for the construction of AI data centers.
But Armstrong said the market shakeup may be about more than which political party won.
“The price movement isn’t logical, isn’t healthy looking,” Armstrong said. “But the reaction itself, if you take a look at the election results and forget about, we talk about the blue wave and what that might mean, but there were 41 different ballot initiatives specifically related to data center construction.”
In many communities, voters supported proposals aimed at limiting or restricting data center construction, results that could be fueling concern among investors.
Despite the volatility, Armstrong said investors should avoid making sudden financial decisions out of fear.
“No good decisions come out of panic,” Armstrong said. “But if you do find yourself in that position where, hey, I really have kind of a concentrated portfolio, then yeah, taking a second look at that, especially even now, can still make sense.”
Armstrong also pointed to affordability and the cost of living as major factors motivating voters in Tuesday’s election.
“If there was one single thing I think people voted on, it was the price at the pump for a gallon of gas this year, front and center in people’s minds,” he said.
With the war in Iran continuing, Armstrong said consumers should plan their winter budgets carefully because prices may not come down quickly.
“That question over affordability is a difficult one to answer, and I don’t think anyone’s going to fix it overnight,” he said.
Armstrong noted that historically, stocks tend to recover after market downturns and urged investors not to panic over a single day’s losses.
Thursday marked the worst day for the S&P 500 since President Donald Trump’s tariffs rattled markets in April 2025.
This is a developing story. Check back for updates as more information becomes available.
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