Stock Market Today: Nasdaq Sinks 4% as Investors Ditch Chip, Data-Center Stocks — Live Updates

The Nasdaq sank 4% as a broad-based selloff hit chip and data-center stocks, with investors dumping some of the year's most popular AI trades.

The Wall Street Journal's live coverage describes a market recalculating its AI positioning, and the scale of the move shows how crowded those trades had become. A 4% single-session drop in a major index is a sharp repricing, not routine rotation.

Jay Hatfield, CEO at Infrastructure Capital, did not mince words. "This is a true panic," he said. His characterization matters because it frames the move as forced, emotional selling rather than an orderly reassessment of fundamentals. Panic-driven tape tends to hit leaders and laggards alike, which fits the description of the selloff as broad-based.

The source points to chips and data-center names as the epicenter. Interpretation: when the most popular trades of the year unwind together, the damage can spread to the wider index, and the 4% Nasdaq drop is consistent with that kind of concentrated exposure being unwound at once.