The Nasdaq 100 fell 6.4% in one day. Here is what drove it
Two days after the midterms, investors sold the companies building AI data centers, and chip stocks took the hardest hit.
Kivorent News desk, , 2 min read
What to know
- The Nasdaq 100 dropped 6.4% on Thursday, November 5, erasing about $2.5 trillion in market value, Reuters reported.
- The Philadelphia semiconductor index fell 12%. AMD lost 17% and Nvidia 9%.
- Investors feared the Democratic midterm sweep would slow data center construction and bring more scrutiny of the AI build-out.
The stock market's AI trade had its worst day in more than a year last Thursday. The Nasdaq 100, the index of the largest non-financial companies on the Nasdaq exchange, fell 6.4% on November 5. Reuters put the loss at about $2.5 trillion in market value. Some other outlets reported a slightly smaller figure; we are using the Reuters number.
The broader Nasdaq Composite fell 5.5%, its deepest one-day drop since the April 2025 tariff selloff. That left it nearly 12% below the record close it set on October 6, which puts the index in what traders call a correction: a decline of 10% or more from a recent high.
Where the selling landed
The damage followed the AI supply chain, from the chips to the buildings to the power.
| Group | Move on November 5 |
|---|---|
| Philadelphia semiconductor index | Down 12% |
| AMD | Down 17% |
| Nvidia | Down 9% |
| Microsoft | Down 3.6% |
| Amazon and Alphabet | Down 2.2% each |
| CoreWeave | Down 10% |
| Nebius | Down 15% |
| GE Vernova | Down 7.4% |
The smaller companies that rent out AI computing capacity fell hardest. Reuters reported that CoreWeave and Nebius have each lost half or more of their value since October 6. The VIX, a measure of how much volatility options traders expect, had its largest one-day increase since December 2024.
Why investors sold
Reuters tied the drop to the midterm elections two days earlier. Investors worried that the Democratic sweep would slow the expansion of AI data centers and bring closer scrutiny of the sector. Several pressures were already in place:
- Local opposition to data centers over their power and water use.
- Financing strain at smaller firms that borrowed heavily to build.
- Doubts about whether AI spending will earn back what it costs.
UBS estimated that around 30% of the US data center capacity expected to be added in 2028 could face construction pauses, according to the Reuters report. Thursday was the second day of AI losses in a row.
What to watch
The question for the rest of the month is whether this is a repricing of one policy risk or the start of a broader rethink of AI spending. The first clues will come from the large cloud companies. If they keep their data center budgets where they are, chip and equipment orders hold up. If they trim them, the companies at the far end of the chain feel it first.
If the mechanics of market prices are new to you, start with our explainer on how an order book works.
This article is general information. It is not investment advice, and trading involves the risk of losing money.
Sources
- Blue tsunami wipes out $2.5 trillion from Nasdaq as investors fret about AI trade, Reuters, republished by GV Wire, November 5, 2026
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