If the Stock Market Crashes, I'm Loading Up on These 2 No-Brainer ETFs
Stocks plunged on Thursday, Nov. 5, with the S&P 500 index (SNPINDEX: ^GSPC) falling 4.4% and the Nasdaq Composite sinking 5.5%. The downturn was led by artificial intelligence infrastructure (AI) stocks , with Nvidia (NASDAQ: NVDA) tumbling 9.3% on the day, Broadcom (NASDAQ: AVGO) plunging 10.4%, Advanced Micro Devices (NASDAQ: AMD) crumbling 17.3%, and Micron (NASDAQ: MU) crashing 17.5%. All four stocks had top-10 weightings in the S&P 500 entering the month. The major market indexes are closely tied to the AI trade, with nine of the S&P 500's top 10 holdings significantly involved in the technology. In fact, Apple is the only company in the group that hasn't aggressively pursued it. Those nine stocks, meanwhile, account for approximately 30% of the index. As such, where AI stocks go, the market is likely to follow. At the center of the market pullback was the market digesting the impact of the U.S. midterm elections, which saw a sweeping victory for the Democratic Party, which will take control of both the House and Senate in the next Congress, as well as many important state governorships, including Texas. Many newly elected officials quickly called for a moratorium on the current AI data center build-out, a move that faced backlash from voters. Continue reading