Market event · Thursday, November 5, 2026
The Nasdaq enters correction: why tech stocks crashed.
On Thursday, November 5, 2026, the Nasdaq Composite fell −5.52% (−1,421 points) to 24,315.00 and closed more than 10% below its recent high, putting it in correction territory. It was the index’s worst day since April 4, 2025. A selloff in AI, chip and data-center stocks drove it: the Philadelphia Semiconductor Index fell −12.3%, its worst day since March 2020, after midterm election results raised fears of a slower AI data-center buildout.
By Konsta · Published November 6, 2026
Why it happened
The AI trade came under fire.
The election. Democrats won key races in the November 3 midterms, including the Texas governor’s race, in one of the biggest data-center markets. NBC News reported that hundreds of candidates who pledged to limit AI data centers were elected, and investors singled out Texas, Ohio, Michigan and Georgia.
The buildout. Chipmakers, memory makers and equipment suppliers sell into the AI data-center boom. A slower buildout, or stricter rules on power and permits, hits their revenue first. Fears that Big Tech’s AI spending peaks earlier than expected added to the pressure.
Positioning. These were the year’s biggest winners. Profit-taking turned into a broad selloff: decliners beat advancers almost six to one on the NYSE, and every S&P 500 sector fell.
Earnings. Qualcomm fell 9.5% on a weak outlook the same day.
Biggest moves
Memory chips fell hardest.
SanDisk SNDK▼ −22.2%
AMD AMD▼ −17.5%- Western Digital WDC▼ −17.4%
- Micron MU▼ −17.2%
- Lam Research LRCX▼ −16.5%
Seagate STX▼ −16.0%
Arm Holdings ARM▼ −13.0%
Qualcomm QCOM▼ −9.5%- Nvidia NVDA▼ −9.2%
- EPAM Systems EPAM▲ +21.5%
SNDK, AMD, WDC, MU, LRCX and EPAM from Senntric’s stored closes; others as reported by NBC News.
How rare
Worst since 2025 and 2020.
- Nasdaq CompositeWorst day since April 4, 2025 (−5.82% then)−5.52%
- S&P 500Worst day since April 4, 2025 (−5.97% then)−4.36%
- Dow JonesWorst day since April 4, 2025−1,833.06 pts
- Information technology sectorSince March 16, 2020Worst day
- Philadelphia Semiconductor IndexWorst day since March 2020−12.3%
- VIXBiggest point jump since April 4, 2025; highest level since March 31+11.57 pts
As reported by CNBC.
Timeline
From the vote to the correction.
- Tue, Nov 3US midterm elections.
- Wed, Nov 4Stocks rally after the vote.
- Thu, Nov 5Chip and data-center shares slide before the open, then the selloff spreads to all 11 S&P 500 sectors. Nasdaq enters correction; the Russell 2000 does too.
- Fri, Nov 6Selling spreads to Asia: Kospi down more than 8% with a trading halt, Taiwan about 9%. US futures mixed before the October jobs report at 8:30 am ET.
Is the market still falling? The why is the stock market down today page has the latest session. Did anything warn before it? Our test of stock market crash indicators looks at what fired ahead of November 5.
Free every weekend
Get the Gameplan by email.
The economic calendar, earnings and key levels for the week, before Monday’s open.
Nasdaq correction
November 5, 2026: questions
Why did the Nasdaq fall on November 5, 2026?
On Thursday, November 5, 2026, the Nasdaq Composite fell −5.52% (−1,421 points) to 24,315.00 and closed more than 10% below its recent high, putting it in correction territory. It was the index’s worst day since April 4, 2025. A selloff in AI, chip and data-center stocks drove it: the Philadelphia Semiconductor Index fell −12.3%, its worst day since March 2020, after midterm election results raised fears of a slower AI data-center buildout.
Is the Nasdaq in a correction?
Yes. After falling −5.52% on November 5, 2026, the Nasdaq Composite closed more than 10% below its recent high, the usual definition of a correction. The Russell 2000 also entered correction territory that day.
Why did Nvidia stock fall on November 5, 2026?
Nvidia fell 9.2%, its largest one-day drop since April 2025, and lost more than $440 billion in market value as investors sold AI infrastructure stocks on fears of a slower data-center buildout. It was the biggest drag on the Dow and turned negative for the year.
Which stocks fell the most?
Memory and storage chipmakers: SanDisk fell 22.2%, AMD 17.5%, Western Digital 17.4%, Micron 17.2% and Lam Research 16.5%, according to Senntric’s closes. Seagate fell 16% and Arm 13%, as reported by NBC News.
What is a Nasdaq correction?
A correction is a fall of at least 10% from the index’s most recent high. A fall of 20% or more is a bear market. The terms describe the size of a decline; they don’t predict whether it continues.
How much market value was lost?
NBC News reported that the S&P 500 lost about $2.8 trillion of market value and the Nasdaq 100 about $2.3 trillion on November 5, 2026. CNBC reported that the Magnificent Seven lost more than $1 trillion combined.
The next move
See the selloff start, not the morning after.
Real-time news and alerts, audio squawk, live SPY and QQQ gamma levels and Sena, the AI trading agent, in one workspace.
Get started