Wall Street's tech selloff intensifies as Nasdaq drops more than 5%
Wall Street's main averages heavily declined on Thursday after scoring big wins a day before. Investors resumed a tech rout that had the Nasdaq shed more than 5%.
The benchmark S&P 500 (SP500) was last -3.4%, while the tech-heavy Nasdaq Composite 
COMP was -5.1%, and the blue-chip Dow 
DJI was -2.2%.
Big tech companies were in the red, including semiconductors such as Broadcom 
AVGO and Nvidia 
NVDA, as well as software stocks like Oracle 
ORCL.
Neocloud names CoreWeave 
CRWV and Nebius 
NBIS were also lower, while Tesla 
TSLA and SpaceX 
SPCX continued to fall.
“Putting all the pieces together, we believe Big Tech capex growth rate now peaks in 2027 vs. our previous view that would not happen until 2028/2029,” said Dan Ives, partner and senior managing director of Yorkville Ives.
“While Big Tech and hyperscaler capex should still easily exceed $1T in 2027, the growth rate into 2028 will clearly moderate significantly as the data center buildout comes at a much slower pace given the political map, especially in the state of Texas,” Ives said.
On the economic front, initial jobless claims declined slightly, indicating a still solid labor market.
Moreover, nonfarm productivity rose 3.6% in the third quarter, higher than it was estimated, and U.S.-based employers announced 43,994 job cuts in October, up 2% from September but down from a year ago.
“Evidence is growing that we’re turning the corner on productivity. US productivity grew at a 3.6% annual rate this past quarter. That’s more than double the 1.5% average from 2007-2019. The new numbers put me further ahead for my bet with Bob Gordon about productivity growth in the 2020s,” said Erik Brynjolfsson, director of the Stanford Digital Economy Lab.
Over to the bond market, yields were lower across the curve. The 10-year Treasury yield (
US10Y) dropped 4 basis points to 4.85%, while the 2-year Treasury yield (US02Y) also declined 6 basis points to 4.53%. The 30-year Treasury yield US30Y was 2 basis points lower at 5.26%.
Oil prices were higher. Crude oil futures 
CL1! were $90, while Brent UKOIL was $96 per barrel.