Wall Street gave back its post-election rally Thursday as investors dumped artificial intelligence and chip stocks, sending the Nasdaq Composite into correction territory, according to NBC News and Investing.com.
The S&P 500 fell 3.5% in midmorning trading, putting it on track for its worst day since April 2025, when President Donald Trump’s global tariffs rocked markets, NBC News reported. NBC reported that the S&P 500’s drop erased nearly $2.5 trillion in wealth from the index.
BREAKING: Nasdaq plummets into correction territory, Dow slides 1,000 points as traders dump tech stocks
— CNBC (@CNBC) November 5, 2026
At 11:01 a.m. Eastern, the Nasdaq was down 5.1% and more than 10% below its most recent record close, marking an entry into correction territory, according to Investing.com. The Dow Jones Industrial Average was down 2.2% at that point, Investing.com reported.
Chip stocks lead the slide
Nvidia shed 8.5%, while AMD and Intel dropped 15.7% and 8.4%, respectively, and the Philadelphia Semiconductor Index lost more than 11.2%, according to Investing.com.
NBC News reported that the selloff was triggered by two lackluster earnings reports from chipmakers Qualcomm and Arm Holdings released Wednesday night. Stock Analysis reported that Qualcomm’s results beat estimates, but its profit forecast for this quarter fell short.
Elon Musk’s companies SpaceX and Tesla each slid around 10%, largely in response to the midterm results, according to NBC News. Musk spent hundreds of millions of dollars to help elect Republican candidates, NBC reported.
The election factor
The losses came a day after Wall Street rallied on the election results. According to Investing.com, the Dow soared 3% on Wednesday, its best day since April 9, 2025, as Deutsche Bank analysts pointed to “relief” that some uncertainty around the midterms had cleared.
NBC News reported that numerous Democrats who won races for governor, attorney general, Senate and House have pledged to slow or halt the construction of AI data centers, with Texas, Ohio, Michigan and Georgia of particular concern because they are large data center markets.
“Data center pauses will slow the pace of buildout into 2028,” UBS strategists wrote, according to Stock Analysis, which reported that the strategists see about 30% of the capacity planned for 2028 at risk.
Investors sought safer places for their money, sending the S&P 500’s consumer staples, health and utilities sectors higher, NBC News reported. Brent crude oil neared $100 per barrel again, according to NBC.
What it means
For millions of Americans with retirement accounts heavy in big tech, Thursday’s drop is a reminder of how much of the market’s run has rested on the AI boom. With Democrats set to take control of both chambers of Congress in January, investors are now weighing the risk of new limits on the industry that has powered much of the rally.
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- Original post: CNBC (@CNBC) on X, Nov 5, 2026
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