Nasdaq Nears Correction as Tech and Chip Stocks Plunge After Midterms

Overview

• On Thursday U.S. stocks split directionally with the Nasdaq down about 3–4 percent and approaching the 10 percent drop commonly called a correction.
• Weak company results acted as a trigger, with Qualcomm falling roughly 9 percent and a broader semiconductor index sliding about 7 percent.
• The Dow held up while financial stocks rose, reflecting a sector rotation away from tech toward banks and other financial firms.
• Risk aversion strengthened the U.S. dollar against emerging-market currencies, which weighed on the Brazilian real and pushed the Ibovespa slightly lower.
• Fed officials’ comments calling for further rate increases kept investors focused on policy and left markets watching upcoming Fed speeches and earnings for direction.