U.S. stocks closed broadly lower, with the Nasdaq falling 5.52%

Odaily: The three major U.S. stock indices all closed lower on the day, with the S&P 500 down 4.36%, the Dow Jones Industrial Average down 3.44%, and the Nasdaq Composite down 5.52%. In pre-market trading, S&P 500 futures were flat, Dow futures fell 1%, and Nasdaq futures rose 1.2%.

Dave Wagner, head of equities at Aptus Capital Advisors, said market risk is concentrated in areas that depend on Washington maintaining a friendly stance. Brian Mulberry, chief market strategist at Zacks Investment Management, noted that declining free cash flow at hyperscale cloud service providers and growing concerns that returns on capital expenditure have yet to materialize intensified the sell-off; he also said AI usage has exceeded available compute capacity, adoption rates remain stable, and demand has not weakened. Since 1970, the S&P 500 has risen an average of 14% in the six months following midterm elections. (Business Insider)