S&P 500 closes down 4.36% at 7,353.73 in its biggest daily loss since April 2025 as chip stocks slump

The S&P 500 finished at 7,353.73, down 4.36%, marking its worst single session since April 2025. The Nasdaq lost about 5.5%, the Dow fell 3.44% and the Russell 2000 dropped 4.45%. The VIX rose roughly 70% to 28.18. One source puts the loss in market value of the Nasdaq 100 at about $2.3 trillion in a single day.

Semiconductors were hit hardest, falling around 12% as a group. Nvidia lost about 9%, while Micron, AMD and Marvell dropped around 17% and SanDisk 22%, according to a Telegram market digest. Data-center and Musk-linked stocks were also among the biggest decliners, while AppLovin rose on strong results.

Reports tie the selloff to worries about possible data-center moratoriums and tighter AI regulation after Democratic gains in Congress. Some of these accounts are summaries only, so the exact cause and the session date are not fully confirmed in the texts.

The slide spread beyond the US. South Korea's KOSPI lost over 8% at one point, with trading halts helping to limit the damage, European indices were modestly lower, and bitcoin dropped about 6% to roughly $75,000. Because chip and megacap technology firms carry large index weights, their losses pass directly into broad index funds such as SPY.