Two days after Wall Street cheered the midterm results, it ran for the exits. On Thursday, 5 November 2026, the Dow Jones stock market benchmark lost 1,833 points, the Nasdaq dropped 5.5% and slid into a correction, and a single chip index collapsed by more than 12%. It was the worst day for US stocks since the tariff panic of April 2025, and AI chipmakers that had looked untouchable for most of the year took the heaviest blows.
Quick answer: On Thursday the Dow fell 1,833.06 points (3.44%) to 51,523.06, the S&P 500 fell 4.36% to 7,353.73 and the Nasdaq Composite fell 5.52% to 24,315.00, entering correction territory. The selloff was driven by AI and semiconductor stocks: Micron and AMD each fell about 17% and Nvidia about 9%. Investors worried that a Democratic-controlled Congress could slow the AI data centre build-out, while weak Qualcomm results and heavy hedge-fund and retail selling added pressure. Nasdaq futures were rebounding early Friday ahead of the jobs report.
What happened in the Dow Jones stock market on Thursday
The losses were broad and fast. All 11 sectors of the S&P 500 closed lower, according to TipRanks, and the “Magnificent Seven” mega-cap tech stocks lost more than $1 trillion in combined market value. The Nasdaq-100 alone fell 6.36%, wiping out about $2.3 trillion, Yahoo Finance reported. Across the wider Nasdaq Composite, the estimated loss was around $2.5 trillion.
| Index | Close (5 Nov 2026) | Change |
|---|---|---|
| Dow Jones Industrial Average | 51,523.06 | −1,833.06 (−3.44%) |
| S&P 500 | 7,353.73 | −334.89 (−4.36%) |
| Nasdaq Composite | 24,315.00 | −1,421.52 (−5.52%) |
| Nasdaq-100 | — | −6.36% |
| Philadelphia Semiconductor Index (SOX) | 9,011.14 | −1,257.52 (−12.25%) |
| Russell 2000 (via IWM ETF) | — | about −4.6% |
A correction means an index has fallen at least 10% from its most recent high. The Nasdaq set its record only last month, so the speed of the drop is what shocked traders. The iShares Semiconductor ETF had its worst day since March 2020, at the start of the pandemic crash.
The chip stocks that fell hardest
Semiconductors were at the centre of the storm. Closing moves for the biggest names, as compiled by StockTitan:
| Stock | Thursday move |
|---|---|
| Micron | −17.5% |
| AMD | −17.3% |
| Marvell | −16.4% |
| Arm | −13.1% |
| Broadcom | −10.4% |
| Intel | −10.3% |
| Qualcomm | −9.5% |
| Nvidia | −9.3% |
The damage spread beyond chips. SanDisk fell about 22%, and Tesla and SpaceX each dropped more than 9%. Palantir and CrowdStrike were down more than 10% at their lows. Even AMD’s record quarter, which we covered in AMD’s Q3 2026 earnings, could not protect its shares.
Why stocks crashed: four forces at once
1. Midterm fears for the AI build-out
The election was the spark. Democrats won control of both the House and the Senate on Tuesday, and stocks first rallied on Wednesday. By Thursday the mood had flipped. Investors began pricing in the risk that the new Congress could add regulatory hurdles for AI data centres, at a time when local opposition to data centres is growing in several key states. UBS estimated that about 30% of the data centre capacity expected to come online by 2028 could be at risk. A Democratic Congress could also complicate any possible SpaceX and Tesla merger, Yahoo Finance noted.
Yardeni Research described the political backlash as “another constraint on AI investment, alongside financial and physical bottlenecks”, but still called the selloff a “buying opportunity”. For the full election picture, see our breakdown of the 2026 midterm election results.
2. Qualcomm’s weak phone chip numbers
Qualcomm reported that phone chip sales fell 26% and missed estimates, citing weak demand and less business from Apple. That hit a market already nervous about chip demand outside AI data centres. We explained the details in why Qualcomm stock fell despite a beat.
3. Profit-taking and retail capitulation
Hedge funds were reportedly locking in 2026 gains before year-end, selling the very stocks that had led the market. Nomura strategist Charlie McElligott summed up the move with a blunt line: “They’re shooting the generals.” Small investors joined the rush. Viraj Patel of Vanda Research called it “a total capitulation by retail investors.”
4. Oil, rates and IPO jitters
Oil climbed again on uncertainty over a US deal with Iran, with WTI crude near $90 and Brent near $98 a barrel. Reports of investor scrutiny over Anthropic’s planned stock listing, and a possible delay, also weighed on AI sentiment, according to Investing.com.
Fear gauge, bitcoin and the Fed
The VIX volatility index, often called Wall Street’s fear gauge, jumped more than 65% at one point and topped 27 during the session. Yahoo Finance said it was the index’s biggest one-day jump in more than two years. Bitcoin fell more than 5% and briefly slipped below $76,000 before steadying.
Interest rates are part of the backdrop. The Federal Reserve raised rates by a quarter point in September, and policymakers have warned that sticky inflation could mean more hikes. After Thursday’s rout, traders cut their odds of a December rate rise to about 70% from nearly 83% a day earlier, StockTitan reported. The Fed’s next decision is due on 9 December.
Not every stock fell. AppLovin jumped about 31% after beating profit estimates, and Krispy Kreme rose about 31% after raising its revenue forecast. AMD chief executive Lisa Su shrugged off the move in her own stock: “I think the market can sometimes be a little bit short-sighted. It is what it is.”
Is this a stock market crash?
There is no official definition of a crash, but a one-day drop of more than 4% in the S&P 500 is rare and severe. Thursday’s moves matched the worst levels since April 2025. Still, the Dow, the S&P 500 and the Nasdaq all remain far above where they started 2025. The selloff was concentrated in the AI and chip stocks that had led the rally, echoing the pattern we tracked in October, when AI stocks lost about $5 trillion while much of the market held up.
Kevin Mahn of Hennion & Walsh told Yahoo Finance that “this type of volatility shouldn’t necessarily come as a surprise to anybody,” given how far the AI trade had run.
Stock market today: what to watch on Friday
Early on Friday, 6 November, futures were mixed. As of about 5:25am ET, Nasdaq-100 futures were up about 1.2% and S&P 500 futures about 0.3%, while Dow futures were down about 0.9%, according to Investing.com. Here is the day’s calendar:
| Time (ET) | Time (IST) | Event |
|---|---|---|
| 6:00am | 4:30pm | Humana Q3 results |
| 7:00am | 5:30pm | Charter Communications Q3 results |
| 8:00am | 6:30pm | Moderna Q3 results |
| 8:30am | 7:00pm | US monthly jobs report |
| 9:30am | 8:00pm | US stock market opens |
Several companies that reported after Thursday’s close also moved sharply in late trading: DraftKings fell about 22% after cutting its profit outlook, and Atlassian dropped about 16% on a softer growth forecast. JFrog rose about 22%.
The jobs report is the big one. Strong hiring could give the Fed more room to keep raising rates, which tends to pressure richly valued tech stocks. Weaker data could ease rate fears but raise growth worries. Ahead of it, weekly jobless claims fell to 189,000, and Challenger data showed announced job cuts in October were down 71% from a year earlier.
Disclaimer: This article is for information only and is not financial advice. Markets can move quickly and past performance does not guarantee future results. Speak to a qualified financial adviser before making investment decisions.
Frequently asked questions
How much did the Dow fall on 5 November 2026?
The Dow Jones Industrial Average fell 1,833.06 points, or 3.44%, to close at 51,523.06.
Why did the stock market crash on Thursday?
A sharp selloff in AI and chip stocks. Investors feared a Democratic Congress could slow AI data centre construction, Qualcomm reported weak phone chip sales, and hedge funds and retail investors sold heavily to lock in gains.
Is the Nasdaq in a correction?
Yes. The Nasdaq Composite fell 5.52% to 24,315.00 on Thursday and closed more than 10% below its record high from October, which meets the usual definition of a correction.
How much did Nvidia stock fall?
Nvidia fell about 9.3% on Thursday. Other chipmakers fell further, including Micron and AMD, which each dropped about 17%.
Will the stock market recover?
Nobody can say for sure. Nasdaq futures were rebounding early Friday, but the jobs report and the Fed’s 9 December rate decision could drive the next big move.
Sources: Yahoo Finance, StockTitan, Investing.com, TipRanks, WithinNigeria (index closing data), Google Trends.
