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Summary
The Nasdaq Composite fell a record 1,421.52 points, or 5.52%, on Nov. 5, erasing about $2.5 trillion of Nasdaq market value, per CNN.
Chip and AI stocks led the selloff, with Nvidia (NVDA) erasing its 2026 gains, on fears that Democrats' midterm sweep could slow data center growth.
Stock futures slipped Thursday evening ahead of the October jobs report, where the Dow Jones consensus calls for 59,000 jobs added, per CNBC.
Gotrade News - The Nasdaq Composite fell a record 1,421.52 points, or 5.52%, to 24,315.00 on Thursday, Nov. 5, as AI stocks sold off on fears that Democrats' midterm sweep could slow data center growth, according to Fox Business. The drop erased about $2.5 trillion of Nasdaq market value, per CNN.
Per The Motley Fool, the slide broke the index's previous single-session point-loss record of 1,122 points, set on June 5, 2026, though the 5.52% decline did not rank among its 20 largest percentage drops. The Nasdaq also closed in correction territory, more than 10% below its Oct. 6 record close, Fox Business reported.
Nvidia, Tesla and Chip Stocks Lead the AI Selloff
Chipmakers and AI infrastructure names took the heaviest losses. The Nasdaq 100, the index tracked by the Invesco QQQ Trust (QQQ), fell 6.36% for its worst day since March 2020, CNN reported, while the Philadelphia Semiconductor Index slumped 12.2%, according to Reuters.
Nvidia (NVDA) erased its 2026 gains, according to CNN, and Tesla (TSLA) also sank. As of the final hour of trading, Nvidia had shed about $374 billion in market value and Tesla about $161 billion, according to CNBC, which reported that Micron and AMD each fell about 15% and Broadcom about 10%.
The selling spread to AI cloud and power names. CoreWeave dropped about 10% and Nebius about 15%, per CNN, while Fox Business said GE Vernova and Constellation Energy fell as investors sold AI power and equipment suppliers. Qualcomm fell 9% after a weak earnings outlook, even though its results beat estimates, CNBC reported.
Dow Falls 1,833 Points on Midterm Data Center Fears
The Dow Jones Industrial Average dropped 1,833.06 points, or 3.44%, to 51,523.06, erasing Wednesday's gain of more than 1,500 points, and the S&P 500 lost 4.36% to 7,353.73, according to CNBC. All three major averages posted their worst day since April 2025, CNBC reported, and CNN said all 11 S&P 500 sectors closed lower.
Investors weighed the political shift after Democrats won both chambers of Congress. Texas Governor-elect Gina Hinojosa, a Democrat, campaigned on a temporary data center moratorium and an end to certain tax incentives for data center builders, CNN reported, noting that Texas is a major hub for Google, Meta, Oracle and OpenAI data centers. CNBC reported that Sen. Bernie Sanders, who caucuses with Democrats, called for a national data center moratorium.
"We want a slowdown in the AI buildout. It was too frenzied and speculative," Ed Yardeni, president of Yardeni Research, told CNN.
Investors moved toward safer assets as the selloff deepened. The Cboe Volatility Index, or VIX, rose roughly 70% for its biggest one-day jump in almost two years, and the 10-year Treasury yield fell to 4.84%, its lowest in two months, according to CNN.
Stock Futures Slip Before the October Jobs Report
Stock index futures extended the decline in Thursday evening trading. Shortly after 6 p.m. ET, S&P 500 futures and Nasdaq-100 futures were each down 0.4%, and Dow futures had lost 201 points, or 0.4%, according to CNBC.
The selling reached Asia on Friday. Japan's Nikkei slumped 6%, South Korea's KOSPI fell more than 8% to trigger a circuit breaker, and Taiwan's market dropped more than 8%, Reuters reported. CNBC said the Nikkei 225 entered bear market territory, more than 20% below its June peak.
Traders now turn to the October employment report. CNBC reported the Dow Jones consensus for the release against September's figures:
Indicator
September (reported)
October (Dow Jones consensus)
Nonfarm payrolls
+29,000
+59,000
Unemployment rate
4.2%
4.2%
When Is the October Jobs Report?
The October Employment Situation report is scheduled for 8:30 a.m. ET on Friday, Nov. 6, according to the Bureau of Labor Statistics release schedule. The November report follows on Dec. 4.
What Does the October Jobs Report Mean for the Fed?
Markets priced about a 70% chance of a quarter-point rate hike at the Federal Reserve's Dec. 9 meeting, according to the CME FedWatch Tool as cited by CNBC. CNBC reported that those odds had stood at 82.7% on Wednesday, and that the Fed's current target range is 3.75% to 4.00%.
This article is for education and information only and is not investment advice. Investment decisions are yours to make after your own research.
Gotrade is the trading name of Gotrade Securities Inc., which is registered with and supervised by the Labuan Financial Services Authority (LFSA). This content is for educational purposes only and does not constitute financial advice. Always do your own research (DYOR) before investing.
M. Alfathan Rahman is a content writer with over 3 years of experience developing digital content strategies across various industries, including fintech. He has experience producing content for tax-related websites and financial education platforms. His focus areas include data research, and crafting financial articles that are informative, accurate, and accessible to investors of all experience levels.
Hendrie Saputra holds a Master of Business Administration (MBA) with a concentration in Business Risk & Finance, along with professional experience in finance, marketing, and project management. He is experienced in analyzing market data and developing research-driven business strategies.
