The Nasdaq closed down 5.5% on Thursday, November 5, 2026, its worst day since the April 2025 "Liberation Day" rout, as a brutal sell-off in artificial intelligence and chip stocks wiped about $2 trillion off the index's market value in a single session. The S&P 500 fell 4.4% and the Dow Jones Industrial Average dropped 3.4%, with every one of the S&P 500's 11 sectors ending lower. The rout erased Wednesday's post-midterm rally in a single day and left the Nasdaq firmly in correction territory, down as much as 14% from the all-time high it reached only a month ago.

Key Points

• The Nasdaq fell 5.5% at the close on Thursday, November 5, 2026, its largest one-day decline in more than a year.
• About $2 trillion was wiped off the Nasdaq's market value in one session; the index is now down as much as 14% from its record high.
• All 11 S&P 500 sectors fell, technology down 7.3%, and the Philadelphia Semiconductor Index dropped 12%, its second-biggest fall on record.
• SanDisk plunged 22%; Micron, AMD and Marvell each fell 17%; Nvidia dropped 9%.
• Bitcoin fell 6% to $75,000, oil ended 3-4% higher and gold rose 1%, while traders pushed the expected Fed rate hike back to March.

What Happened

Stocks opened lower on Thursday and the selling gathered pace through the session. By 11:56 a.m. ET the Nasdaq was already down 5.3%, and the afternoon brought no relief, with the index closing at its lows. The S&P 500 lost 4.4% and the Dow shed 3.4%, a broad retreat that spared almost nothing: all 11 sectors of the S&P 500 finished in the red, led by a 7.3% collapse in technology.

Chipmakers bore the brunt of the sell-off. The Philadelphia Semiconductor Index fell 12%, its second-biggest drop on record. SanDisk plunged 22%, Micron Technology, AMD and Marvell each fell 17%, and Nvidia, the most valuable company in the world and the symbol of the artificial intelligence boom, dropped 9%. The slide followed a warning from Qualcomm over weak phone-chip sales, which added to doubts about demand across the hardware chain. Our earlier report on the intraday crash tracked the rout as it unfolded through the morning.

Background and Context

Only a month ago the mood on Wall Street could hardly have been more different. The Nasdaq closed at a record 27,599.89 on October 6, the high point of a year-long surge driven by belief in artificial intelligence, as companies raced to build data centres and investors rewarded the spending with ever-higher valuations.

The midterm elections on Tuesday, November 3, changed the political backdrop in a single night. Democrats won control of both the House and the Senate, and Wall Street initially celebrated: the Dow jumped more than 1,500 points on Wednesday. But the celebration lasted barely a day. By Thursday, traders were weighing what Democratic control means for the AI buildout, with the prospect of tougher scrutiny of data-centre projects. Qualcomm's warning on phone-chip sales then gave the market a concrete reason to sell.

Nasdaq Closes Down 5.5%: The Sell-Off in Numbers

The headline figures tell the story of a market in full retreat. The Nasdaq's 5.5% fall was its largest one-day decline in more than a year, and the roughly $2 trillion wiped off its market value in one session ranks among the largest single-day losses of wealth in stock market history. The S&P 500's 4.4% drop and the Dow's 3.4% slide completed a sweep of losses across the three major indexes, while the breadth of the decline — every sector lower — showed that the selling went far beyond the chip names at its centre.

Within technology, the damage was concentrated but deep. The Philadelphia Semiconductor Index's 12% plunge was its second-worst day ever, behind only the worst days of the March 2020 pandemic crash. SanDisk's 22% collapse led the individual losers, followed by 17% drops for Micron Technology, AMD and Marvell, and a 9% fall for Nvidia. Beyond equities, Bitcoin fell 6% to $75,000, oil ended 3-4% higher, and gold rose 1% as some investors sought shelter. US Treasury yields fell 12 basis points at the short end as traders rethought the path of interest rates.

Reactions and Market Response

Interest-rate traders moved quickly to reprice the outlook for Federal Reserve policy. The expected timing of the Fed's next rate hike was pushed back to March, with traders now pricing only about 40 basis points of tightening in total. Across the market, the mood was one of reassessment rather than panic. Analysts pointed to the question that has shadowed the AI trade all year: whether the hundreds of billions pouring into data centres will generate returns fast enough to justify the valuations. Thursday's sell-off was, in that sense, less a verdict on any single company than a repricing of the whole AI story.

Why It Matters

A 5.5% one-day fall in the Nasdaq matters well beyond Wall Street's trading floors. The index is the home of the technology giants that dominate American retirement accounts, pension funds and index trackers, so a $2 trillion loss of value reaches millions of savers. The Nasdaq is now down as much as 14% from its record high, firmly in correction territory, and corrections of this speed change behaviour: companies rethink spending plans, consumers feel less wealthy, and the Federal Reserve watches financial conditions more closely.

What Happens Next

Attention now turns to Friday's session and whether buyers step in after a $2 trillion one-day loss or whether the selling carries into a second day. Earnings reports and economic data in the coming days will test whether the AI spending boom is slowing in fact as well as in sentiment, while any signals from the incoming Democratic leadership in Congress about data-centre policy will be watched closely. With the Nasdaq already 14% below its high, the market's next test is whether Thursday's lows hold — or whether the worst day since April was only the beginning.

Frequently Asked Questions

How much did the Nasdaq fall on Thursday, November 5, 2026?
The Nasdaq closed down 5.5%, its largest one-day decline in more than a year and its worst day since the April 2025 "Liberation Day" rout.

How much value was wiped off the market?
About $2 trillion was wiped off the Nasdaq's market value in a single session, and the index is now down as much as 14% from its all-time high.

Which stocks fell the most?
SanDisk plunged 22%, Micron Technology, AMD and Marvell each fell 17%, and Nvidia dropped 9%.

Why did the market sell off?
Investors reassessed the AI data-centre buildout after Democrats swept both chambers of Congress in the November 3 midterms, and Qualcomm warned on weak phone-chip sales.

What happened to the other major indexes?
The S&P 500 fell 4.4% and the Dow dropped 3.4%, with all 11 sectors lower. See our reports on the post-midterm rally and the mixed Monday close.