Nasdaq Falls 5.52% on Nov 5, 2026 as AI Chip Stocks Plunge

Key takeaways

• The Nasdaq Composite fell 1,421.51 points, or 5.52%, to 24,315.00 at the close (21:00 UTC) on Thursday, Nov 5, 2026, entering correction territory more than 10% below its October record, according to CNBC and Yahoo Finance.
• The S&P 500 lost 4.36% to 7,353.73, the Dow Jones Industrial Average dropped 1,833.06 points, or 3.44%, to 51,523.06, and the Russell 2000 slid 4.45% to 2,729.89; CNBC said all three major averages had their worst day since April 2025.
• AI and chip stocks led the decline: AMD fell 17.26%, Broadcom 10.43%, Qualcomm 9.49% and Nvidia 9.26%, according to Yahoo Finance closing data.
• The Cboe Volatility Index (VIX) jumped 69.66% to 28.18 at its 21:15 UTC close, from 16.61 on Wednesday, according to Yahoo Finance.
• Treasury yields fell: the 2-year par yield dropped to 4.46% from 4.58% and the 10-year to 4.84% from 4.90%, according to the US Treasury.

Session recap

Wall Street gave back all of Wednesday's post-election rally on Thursday as investors sold the year's biggest AI winners. The Nasdaq Composite fell 5.52% and the S&P 500 lost 4.36%, reversing the gains described in the brief for Wednesday, Nov 4. For other regions, see Asian and global market closes.

Changes are measured against the Wednesday, Nov 4 close: 7,688.62 for the S&P 500, 25,736.51 for the Nasdaq, 53,356.12 for the Dow, 2,856.95 for the Russell 2000 and 16.61 for the VIX, according to Yahoo Finance. Treasury par yields are the official end-of-day curve, based on bid-side prices at about 15:30 New York time. The Russell 2000 traded between 2,723.93 and 2,855.25 and the VIX between 16.70 and 28.36, according to Yahoo Finance. Yahoo Finance reported that the Nasdaq-100 fell 6.3% and the PHLX Semiconductor index 12%. Selling was broad: in a report published shortly before the closing bell, Investing.com counted 2,482 decliners against 355 advancers on the New York Stock Exchange.

What drove it

Policy fears hit the AI build-out trade

CNBC reported that investors pulled back from technology on fears that the Democratic sweep of Congress and governors' races would slow the construction of AI data centers, and noted that Sen. Bernie Sanders had called for a national moratorium on data centers. ABC News reported that many winning Democrats had campaigned against data centers. Dan Ives of Yorkville told ABC News that "the Democratic blue tidal wave across the Senate and House was a seismic shift that will have a negative impact." Tim Holland, chief investment officer at Orion, said investors were "stepping away until they get a better sense of the implications of the midterms around the AI capex cycle in particular," according to CNBC.

Profit-taking in the year's biggest winners

Yahoo Finance reported that hedge funds appeared to be locking in 2026 gains by selling the year's top AI and chip performers, and that retail investors joined in. "They're shooting the generals," Nomura cross-asset strategist Charlie McElligott said, according to Yahoo Finance. Viraj Patel of Vanda Research described "a total capitulation by retail investors," Yahoo Finance reported. Keith Lerner, chief investment officer at Truist Wealth, said "the rubber band is becoming increasingly stretched," according to CNBC.

Chipmakers and earnings

AMD fell 17.26% to $404.40, Broadcom 10.43% to $291.53 and Nvidia 9.26% to $181.60, according to Yahoo Finance closing data. CNBC said Nvidia alone had lost about $374 billion in market value from Wednesday's close at one point in the session. Qualcomm dropped 9.49% to $156.75 after a first-quarter earnings outlook that fell short of estimates, Yahoo Finance reported. AMD chief executive Lisa Su said "the market can sometimes be a little bit short-sighted," according to Yahoo Finance. ABC News reported that SanDisk fell more than 22%, while Microsoft lost more than 3% and Amazon more than 2%.

One standout went the other way: AppLovin jumped 31.04% to $356.10 after third-quarter results and an outlook that beat expectations, according to Yahoo Finance.

Volatility, yields and oil

The VIX, which measures expected 30-day swings in the S&P 500, had its biggest one-day jump in more than two years, Yahoo Finance reported. Treasury yields fell, with the 2-year par yield down 12 basis points to 4.46%, according to the US Treasury. Oil rose on uncertainty over whether the US would pursue a deal with Iran to end the Middle East war, Yahoo Finance reported. January Brent crude futures traded at $99.25 at 21:59 UTC, up 4.89% from the previous close of $94.62, according to a Yahoo Finance quote taken after the settlement window.

Political & policy watch

• Data-center scrutiny: Sen. Bernie Sanders' call for a national data-center moratorium added to concerns about how the new Congress will treat AI infrastructure, CNBC reported. No legislation had been introduced on that point in the reports Bullquill reviewed.
• Corporate deals: Ives said a proposed SpaceX-Tesla combination "now faces a much tougher regulatory roadmap to get this deal done in 2027," according to Yahoo Finance.
• Crypto legislation: Brian Gardner of Stifel said the Clarity Act on digital-asset market structure is unlikely to advance this year, Yahoo Finance reported.
• Iran: Oil traders were weighing whether Washington would seek an agreement to end the war, according to Yahoo Finance; no deal had been announced.
• ASEAN angle: A sell-off in US chipmakers and higher crude both matter for Southeast Asian markets with large electronics exports or oil imports; see what the US midterm results mean for Asian markets.

What to watch next

• Friday, Nov 6, 13:30 UTC: the BLS Employment Situation report for October, according to the BLS release schedule.
• Friday, Nov 6, Asian session: how chip-heavy markets in Asia respond to the US semiconductor sell-off.
• AI stocks: whether Nvidia, which Bullquill covered in its slide below the 200-day average, and other chipmakers stabilise after Thursday's losses.
• Dec 8-9: the next Federal Reserve FOMC meeting, with a new Summary of Economic Projections, according to the Fed's calendar.

Risk checklist for readers

• A "correction" usually means a fall of 10% or more from a recent peak; it describes past moves and says nothing certain about what comes next.
• Index losses were concentrated in large AI and semiconductor stocks, which carry heavy weights in the Nasdaq and S&P 500; check sector and small-cap performance too.
• A VIX near 28 signals much higher expected volatility than earlier in the week; it measures expected swings, not direction.
• Political headlines about regulation can move stocks before any law is drafted; check official statements and bill texts.
• Friday's jobs report can shift Treasury yields quickly, and first estimates are often revised.
• Oil prices react to unconfirmed geopolitical reports; compare settlement prices with later quotes and note the contract month.

This article is for information only and is not investment advice.