Why it matters
- The Nasdaq Composite fell 5.52% to 24,315.00 on Thursday, Nov. 5, the S&P 500 lost 4.36% to 7,353.73 and the Dow dropped 1,833.06 points, or 3.44%, to 51,523.06. CNBC said all three had their worst day since April 2025.
- The Nasdaq entered a correction, more than 10% below its October record, CNBC said. Yahoo Finance data put it 11.9% below its Oct. 6 record close. The PHLX Semiconductor index fell 12.25%.
- Investors feared Democrats' projected control of Congress could slow the data center buildout and bring tighter AI rules, CNBC reported. AMD and Micron fell more than 17%, and Nvidia lost 9.3%, Yahoo data show.
U.S. stocks suffered their worst day in more than a year and a half on Thursday, Nov. 5, as a rout in artificial intelligence and chip stocks spread across the market. The Nasdaq Composite fell 5.52% to 24,315.00 and entered correction territory, CNBC reported. The S&P 500 dropped 4.36% to 7,353.73, and the Dow Jones Industrial Average lost 1,833.06 points, or 3.44%, to 51,523.06.
All three major averages posted their worst day since April 2025, according to CNBC. The small-cap Russell 2000 fell 4.45% to 2,729.89 and also entered a correction, CNBC said. The Cboe Volatility Index (VIX), Wall Street's fear gauge, jumped to 28.18 from 16.61, Yahoo Finance data show.
Stock market today: how the indexes closed
| Index | Wed., Nov. 4 close | Thu., Nov. 5 close | Change |
|---|---|---|---|
| Nasdaq Composite | 25,736.51 | 24,315.00 | -5.52% |
| S&P 500 | 7,688.62 | 7,353.73 | -4.36% |
| Dow Jones Industrial Average | 53,356.12 | 51,523.06 | -3.44% |
| Russell 2000 | 2,856.95 | 2,729.89 | -4.45% |
| PHLX Semiconductor index | 10,268.65 | 9,011.14 | -12.25% |
| VIX | 16.61 | 28.18 | +11.57 pts |
Source: Yahoo Finance daily data.
Why is the stock market down today?
Investors dumped AI stocks on fears of a political backlash against the industry. CNBC said investors worry that Democrats' projected sweep of Congress and wins in governors' races will slow the data center buildout and bring tighter AI regulation. Sen. Bernie Sanders of Vermont has called for a national data center moratorium, and voters in several states rejected data center ballot measures, CNBC reported.
"It's about tone and tenor from the party that did really well," Tim Holland, chief investment officer at Orion, told CNBC. Analysts said the selling began to feed on itself as it spread from tech to the broader market, according to CNBC. "The rubber band is becoming increasingly stretched," said Keith Lerner, chief investment officer at Truist Wealth.
Which stocks fell the most?
Chipmakers led the decline. The iShares Semiconductor ETF had its worst day since the March 2020 Covid-19 selloff, CNBC said. Closing moves, from Yahoo Finance data:
| Stock | Thu., Nov. 5 change |
|---|---|
| Micron | -17.5% |
| AMD | -17.3% |
| Arm | -13.1% |
| Taiwan Semiconductor (ADR) | -10.8% |
| Broadcom | -10.4% |
| Qualcomm | -9.5% |
| Nvidia | -9.3% |
| Oracle | -6.9% |
CNBC said Qualcomm also fell on a weak earnings outlook. AI cloud names CoreWeave and Nebius dropped about 10% and 15%, respectively, CNBC reported. AMD had jumped after its earnings this week; see our AMD earnings story.
What happened to bonds, the dollar and bitcoin?
Treasury yields fell. The 10-year Treasury par yield fell to 4.84% from 4.90%, and the two-year yield fell to 4.46% from 4.58%, Treasury Department data show. The dollar slipped about 0.5% against the yen to about 157.7, and bitcoin fell about 5.6% to about $75,680 at 21:52 GMT, according to Yahoo Finance data.
The sell-off reversed Wednesday's post-election rally; read our report on Dow futures jumping after Democrats were projected to win Congress. The October jobs report is due Friday, Nov. 6, at 8:30 a.m. ET. Follow more markets news and the latest global market news.
Sources
- CNBC, Dow drops 1,800 points; Nasdaq tumbles into correction territory on AI tech wreck: Live updates (Nov. 5, 2026)
- Yahoo Finance, chart data: S&P 500, Nasdaq Composite, Dow, Russell 2000, VIX, PHLX Semiconductor, Nvidia, AMD, Micron, Broadcom, TSMC, Qualcomm, Oracle, Arm, USD/JPY, bitcoin
- U.S. Department of the Treasury, Daily Treasury par yield curve rates
