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U.S. Stocks Today: Nasdaq Sinks 5.5% Into Correction in Chip Rout

The Nasdaq fell 5.52% and the S&P 500 4.36% on Thursday, Nov. 5, their worst day since April 2025, as chip stocks crashed on AI data center fears.

By Global Market Now Staff · · 4 min read

A candlestick stock chart on a dark computer screen
Photo: Austin Hervias / Unsplash

Why it matters

  • The Nasdaq Composite fell 1,421.51 points, or 5.52%, to 24,315.00 on Thursday, Nov. 5, and the S&P 500 lost 4.36%, Yahoo Finance data showed. CNBC said all three averages had their worst day since April 2025.
  • The PHLX Semiconductor Index fell 12.25% as AMD and Micron dropped more than 17%, on fears that Democratic wins will slow data center buildout, CNBC reported. The VIX jumped to 28.18.
  • Treasurys rallied. The 2-year yield fell 12 basis points to 4.46% and the 10-year to 4.84%, Treasury data showed. Oil rebounded, with January Brent settling at $98.29, Bloomberg reported.

Session recap: what happened in this region's trading day, with sources.

U.S. stocks sold off on Thursday, Nov. 5, one day after a post-election rally. The Nasdaq Composite fell 1,421.51 points, or 5.52%, to 24,315.00, and the S&P 500 dropped 334.89 points, or 4.36%, to 7,353.73, according to Yahoo Finance data. The Dow Jones Industrial Average fell 1,833.06 points, or 3.44%, to 51,523.06. CNBC said all three averages had their worst day since April 2025.

The Nasdaq is now in a correction, CNBC reported. It closed 11.9% below its Oct. 6 record close of 27,599.79, Yahoo Finance data show. CNBC said the Russell 2000 also entered a correction.

IndexThursday closeChange vs. Wednesday, Nov. 4
S&P 5007,353.73−334.89 (−4.36%)
Dow Jones Industrial Average51,523.06−1,833.06 (−3.44%)
Nasdaq Composite24,315.00−1,421.51 (−5.52%)
Russell 20002,729.89−127.06 (−4.45%)
Cboe Volatility Index (VIX)28.18+11.57 (+69.66%)
PHLX Semiconductor Index9,011.14−1,257.51 (−12.25%)
S&P/TSX Composite (Canada)35,605.27−736.13 (−2.03%)
Ibovespa (Brazil)166,191.45−1,372.55 (−0.82%)
S&P/BMV IPC (Mexico)71,087.56+267.77 (+0.38%)

Source: Yahoo Finance daily chart data.

Why did U.S. stocks fall today?

Stocks fell because investors dumped AI and chip shares on fears that the midterm results will slow the buildout of data centers. CNBC said investors worry that the Democratic sweep of Congress and governor races will bring pressure on data center projects, and noted that Sen. Bernie Sanders has called for a national data center moratorium. Analysts told CNBC investors want clarity on how the results affect AI spending. The selling spread from tech into industrials and financials.

CNBC said the iShares Semiconductor ETF had its worst day since March 2020.

Which sectors and stocks moved the most?

All 11 S&P sector funds fell. The Technology Select Sector SPDR fund dropped 8.00% and industrials 4.12%, while communication services fell only 0.59% and utilities 0.71%, Yahoo Finance data showed.

StockThursday closeChange
AppLovin$356.10+31.04%
Wendy's$7.94+3.79%
Apple$344.17−1.53%
JPMorgan Chase$337.34−4.19%
Oracle$115.16−6.93%
Nvidia$181.60−9.26%
Qualcomm$156.75−9.49%
CoreWeave$43.66−9.83%
Broadcom$291.53−10.43%
Tesla$343.69−10.77%
MercadoLibre$1,530.28−12.05%
Arm Holdings$166.72−13.08%
Expedia$272.48−13.74%
AMD$404.40−17.26%
Micron$656.39−17.46%

Source: Yahoo Finance chart data.

Qualcomm fell after a weaker-than-expected outlook, even though it beat earnings estimates, CNBC said. AppLovin jumped after better-than-expected results and guidance. Expedia fell on weak fourth-quarter revenue guidance, CNBC reported earlier in the day.

After the bell, Cloudflare was up about 15.4% and Airbnb about 10.4%, while Atlassian was down about 17.3% and Natera about 20.6%, around 4:52 p.m. ET, Yahoo Finance data showed. All four were on Nasdaq's after-hours earnings calendar.

What happened to Treasury yields, oil and gold?

Treasurys rallied as stocks fell. The 2-year yield dropped 12 basis points to 4.46%, the 10-year fell to 4.84% from 4.90%, and the 30-year to 5.25% from 5.28%, Treasury data showed. Separately, Freddie Mac said the 30-year mortgage rate averaged 7.18% this week, down from 7.24%.

Oil rebounded after Wednesday's plunge. January Brent rose 3.9% to settle at $98.29 a barrel, and December WTI rose 2.7% to $90.52, Bloomberg reported via Rigzone. Traders weighed signs of easing tensions with Iran, including reports that Iran is reviewing mediators' nuclear proposals, and analysts said Wednesday's selloff was technically overdone, Bloomberg said. Gold futures were about $4,097.50 an ounce, up about 0.6%, and bitcoin fell about 5.9% to about $75,690.

How did Canada, Brazil and Mexico trade?

Canada's S&P/TSX Composite fell 2.03%, and Shopify lost 5.40% in Toronto, Yahoo Finance data showed. Brazil's Ibovespa fell 0.82%, while Mexico's IPC rose 0.38%.

What comes next?

The October jobs report is due Friday, Nov. 6, at 8:30 a.m. ET, the Bureau of Labor Statistics said. October consumer prices follow on Tuesday, Nov. 10. Treasury sells $58 billion of 3-year notes Monday, Nov. 9, $42 billion of 10-year notes Tuesday, Nov. 10, and $25 billion of 30-year bonds Thursday, Nov. 12.

This morning's day-ahead guide set up the session, and our Europe Thursday recap covers the Bank of England's hike to 4%. Wednesday's rally is in our Americas Wednesday recap.

Follow the rest of the trading day on our global market today page, with the latest Asia, Europe and Americas session recaps.

Sources

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