US Stock Market Sees Worst Single-Day Fall Since April 2025 As Nasdaq Drops 5.52% And Dow Sheds 1,833 Points

Wall Street had a difficult Thursday, 5 November 2026. Technology shares took a beating as investors began questioning whether the pace of data centre construction in the US could slow following the midterm election results.

The Democrats' wins in several states have brought renewed attention to opposition against large data centre projects. Investors were also quick to cash in on gains made during Wednesday's strong market rally. The decline also drew attention to movements across global indices, with investors reassessing the outlook for the global market.

Where Did The US Stock Market Indices End After Thursday’s Sell-Off?

Thursday's losses wiped out much of the optimism seen a day earlier. The Nasdaq Composite ended the session at 24,315.00, down 5.52%. The S&P 500 was not far behind, losing 4.36% to finish at 7,353.73. The Dow Jones Industrial Average gave up 1,833.06 points, closing 3.44% lower at 51,523.06.

It was the worst trading session for all three indices since April 2025. The Nasdaq has now slipped more than 10% from its record high last month, putting it in correction territory. The Russell 2000 also entered correction territory after falling 4.45% during the session.

The Nasdaq entered correction territory after falling more than 10% from its record high last month. Investors will also be watching the Nasdaq-100 and Dow futures for signs of how the market may open in the next session.

Why Is US Market Crashing?

Semiconductor stocks extended their losses for a second consecutive session as investors reassessed the outlook for artificial intelligence (AI)-related infrastructure spending. Democratic victories in several states have raised concerns about tighter restrictions and delays in new data centre projects.

Vermont Senator Bernie Sanders has also called for a nationwide moratorium on data centre construction, citing environmental and employment concerns.

Among individual stocks, Broadcom and Nvidia fell 10% and 9%, respectively. Oracle declined nearly 7%, while Qualcomm lost 9% despite reporting quarterly earnings above market estimates. Its weaker-than-expected earnings outlook disappointed investors.

The iShares Semiconductor ETF (SOXX) dropped more than 12%, recording its worst session since March 2020. Neocloud companies were also affected, with CoreWeave falling nearly 10%, Nebius declining around 15% and Iren losing almost 17%.

The selling eventually spread to other sectors. Caterpillar declined 6%, JPMorgan fell 4%, while Boeing and Nike lost around 2% each.

Meanwhile, Brent crude recovered around 3% to trade near $97 per barrel after plunging nearly 9% in the previous session. Investors were reassessing the risks surrounding the US-Iran conflict.

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