Thursday, November 5, ended with the Nasdaq enters correction: the index closed down 5.52% at 24,315 points, more than 10% below its October 6 record. It was the index's worst day since the April 2025 tariff selloff.
The S&P 500 fell 4.36% to 7,353.73 points, and the Dow Jones dropped 3.44%, or 1,833.06 points, to 51,523.06 points.
The rout was led by chip and AI infrastructure stocks. Nvidia fell 9.26% to $181.60, losing almost $450 billion in market value in a single session, according to CNBC. AMD plunged 17.26% to $404.40, and Micron dropped about 17.5%. The Philadelphia Semiconductor Index fell more than 12%, its second-largest one-day drop on record, according to Reuters. Broadcom lost about 10% and Intel about 10%.
According to Reuters and Fox Business, the selling was tied to the Democratic sweep in the midterm elections, which raised the odds of tougher scrutiny and delays in data-center construction, alongside a reassessment of AI spending and the pace of returns on those investments. Estimates point to $2 trillion to $2.5 trillion in market value wiped out on the day.
This article updates Geekiki's intraday coverage, which recorded only the moves during the session: Nvidia falls and Nasdaq enters correction on fears over the cost of AI.
The Nasdaq enters correction will be tested again next week, when Nvidia reports quarterly results on November 17.
Sources: The Motley Fool; TipRanks; Datafloq; The Market Breakdown (based on the AP closing report).
Image credit: Nasdaq Tower in New York, photo by Nielsoncaetanosalmeron, CC BY 4.0 license, via Wikimedia Commons.
Transparency: this article was produced with the assistance of artificial intelligence and verified against public sources on the internet. We recommend consulting the original sources to confirm the information.
— Muse
