Nasdaq Falls 5% as Chip Stocks Plunge, Erasing Post-Election Gains
The Nasdaq dropped more than 5% by late morning Thursday as chipmakers such as Micron and AMD sank, wiping out Wednesday's post-election rally.
U.S. stocks sold off sharply on Thursday, November 5, 2026, led by a rout in chipmakers. By late morning the Nasdaq Composite was down more than 5% and the S&P 500 was off more than 3%, Yahoo Finance reported, giving back the gains from Wednesday's rally after the midterm elections.
All figures below are intraday and will change by the 4 p.m. ET close.
How the selloff built through the morning
Time (ET) | Nasdaq Composite | S&P 500 | Dow | Source |
|---|---|---|---|---|
10:30 a.m. | −4.16% (24,666.74) | −2.56% (7,491.99) | −1.45% (52,583.69) | TradingKey |
10:35 a.m. | about −4% | −2.3% | −1.4% (more than 700 points) | Yahoo Finance |
11:37 a.m. | more than −5% | more than −3% | n/a | Yahoo Finance |
1:01 p.m. | n/a | n/a | −3.13% (51,686.94, down 1,669.18 points) | Yahoo Finance quote data |
More than $2 trillion was wiped from the value of U.S. stocks within 50 minutes of the opening bell, according to Proactive. Proactive also said the Nasdaq was more than 10% below its record set last month, which puts it in what traders call a correction, and that the S&P 500 was on track for its worst session since April 2025. Yahoo Finance said the Dow was on pace for its weakest showing on the second trading day after a midterm in records going back to 1896.
Wall Street's fear gauge jumped. The Cboe Volatility Index (VIX) climbed as high as 27.45, a jump of more than 65%, according to Yahoo Finance.
Chip stocks took the hardest hit
The PHLX Semiconductor Index, which tracks 30 large chip companies, was down more than 10% at about 12:30 p.m. ET and on track for its worst day since March 2020, according to Forbes. Moves at about that time, as reported by Forbes:
Stock | Move around 12:30 p.m. ET |
|---|---|
AMD | −14.5% |
Micron | −13.5% |
Qualcomm | −10.5% |
Nvidia | −8% |
Broadcom | −8% |
Intel | −6.5% |
Source: Forbes. Qualcomm was already under pressure after its quarterly outlook; see our Qualcomm earnings story.
Tesla and SpaceX each fell more than 9%, Yahoo Finance reported.
Why investors sold
Several outlets tied the selloff to worries about the AI building boom. Chip stocks had already slipped over the past month amid concerns the AI trade had gotten ahead of itself, Yahoo Finance said. Yahoo Finance said the drop deepened after Democrats won control of both the House and the Senate, raising concerns about a slowdown in data-center construction. Proactive added that investors worried about possible limits on new data centers and higher electricity and water costs. Forbes pointed out that chipmakers' revenue is tied to data-center buildouts.
Other markets
- Bonds: the 10-year Treasury yield fell to 4.83%, Proactive reported.
- Gold: up 0.9% to $4,098 an ounce (Proactive).
- Bitcoin: briefly fell below $76,000 (Yahoo Finance). See our bitcoin story.
- Economic data: government data released Thursday morning showed productivity jumped 3.6% in the third quarter.
What it means for investors
Big one-day drops are unsettling, and intraday moves can shrink or grow before the close. If you own an index fund, a single bad day for chip stocks matters less than your long-term plan. Our guides on what an ETF is and how to read a stock quote can help you understand what you own.
This article is for information only and is not investment advice.
Sources
- Yahoo Finance live blog: Stock market today, Thursday, November 5, 2026
- Forbes: Chipmakers tumble toward worst day in years (November 5, 2026)
- Proactive via Yahoo Finance: Chip stocks hammered as political shift raises AI infrastructure concerns (November 5, 2026)
- Yahoo Finance: Micron stock declines 12% as chip sell-off deepens (November 5, 2026)
- TradingKey: US stocks tumble as Nasdaq drops over 4% (November 5, 2026)
This article is for information only and is not investment advice. Do your own research before buying or selling any asset.