Nasdaq Slumps as Congressional Stock Trading Reaches $636 Million

Congressional stock trading reaches $636 million

Members of Congress executed 13,324 stock trades worth $636 million in 2025 through early December.

Academic studies remain divided on whether these congressional stock picks actually outperform the broader market.

Nasdaq enters correction territory after AI rout

The Nasdaq Composite Index slumped 5.5%, falling more than 10% below its recent record to enter correction territory. A sell-off in artificial-intelligence stocks triggered this decline, marking the index’s worst month in more than a year.

The United States mid-term elections intensified this AI-related stock rout as AI skeptics gained influence. These elections was a clear rebuke to President Trump or the Republican Party and brought several AI skeptics into power. Despite the tech rout, stock funds posted a 9.9% gain for 2026.

Dividend stocks offer resilience during market crashes

Dividend stocks offer more resilience during market crashes. During the dot-com bubble burst, the S&P 500 fell 47% over two years, while S&P 500 Dividend Aristocrats gained 4.7%. This performance allowed the Dividend Aristocrats to outperform the broader market by 51.4%.

During the 2020 COVID-19 crash, Dividend Aristocrats underperformed the S&P 500 by 1.4%. Investors looking for yield can find a 3% dividend return on Coca-Cola at a target price of about $71, based on its $2.12 annual dividend per share.

Long-term gains for Netflix and Nvidia

A $1,000 investment in the company on December 17, 2004, would be worth $341,966 today.

A $1,000 investment in the stock on April 15, 2005, would be worth $1,146,819 today.

Japan housing market viewed as non-investment

Investing $100,000 in the stock market would have yielded better returns than buying a cheap home in rural Japan and renting it out as an Airbnb. Houses in Japan are not intended to be investments.

CAPE ratio and billionaire warnings signal caution

The CAPE ratio sits above 40, which is more than double the long-term average in the high teens. This metric suggests optimism currently rules the market.

The most recent bear market occurred in 2022. Billionaires Warren Buffett and Bill Ackman warned Wall Street about an imminent market crash.

Greencoat and Scottish Mortgage see high trading volume

Greencoat UK Wind attracted bargain hunters in October and November 2026 because of a wide discount. It ranked among the most bought and sold shares during this period.

Scottish Mortgage remained at the top of the trading list, falling about 8%. The decline followed a shift toward a more diversified, less tech-heavy portfolio and a possible boost from the IPO filing of Anthropic.