NEW YORK, Nov. 5 (TodayViralUSA) — Artificial-intelligence stocks led a sweeping sell-off on Wall Street on Thursday, sending the S&P 500 down 4.4% for its worst session since April 2025 and wiping out the market’s midterm rally from a day earlier.
The Dow Jones Industrial Average sank 1,833 points, or 3.4%, while the Nasdaq composite tumbled 5.5% and slipped into a correction — a drop of more than 10% from its recent record high. Investors fretted that Democratic victories in the midterm elections could bring tighter limits on data-center construction that has powered much of this year’s AI boom.
Chipmakers and ‘neocloud’ names lead the plunge
All told, the S&P 500 fell 334.89 points to 7,353.73. The Dow closed at 51,523.06, and the Nasdaq finished at 24,315.00. The Russell 2000 index of smaller companies also dropped 4.4%.
Nvidia, the chipmaker most closely identified with the AI buildout, fell 9.3% and was the heaviest weight on the S&P 500, according to The Associated Press. Advanced Micro Devices tumbled 17.3%. CoreWeave, which rents AI computing capacity, dropped 9.8%, and GE Vernova, a major supplier of power equipment for data centers, sank 7.5%.
A slowdown in new data centers would mean fewer orders for AI chips, electricity gear and related services that have been among the brightest spots in the U.S. economy. Asian markets felt the pressure overnight, with South Korea’s Kospi and Japan’s Nikkei among the tech-heavy indexes that slid.
A sharp reversal after Wednesday’s surge
Wednesday’s session had been Wall Street’s best in three months as traders cheered the midterm outcome. Thursday’s losses more than erased those gains. Morning advances for most stocks evaporated as selling in AI-linked names broadened across the market.
There were a few bright spots. AppLovin jumped 31% after the marketing platform topped revenue and profit forecasts and expanded a share-repurchase authorization. Separate economic reports showed fewer workers seeking unemployment benefits and stronger-than-expected productivity growth, but those did little to steady equities.
For the week, the Nasdaq was down about 4.4% and the S&P 500 about 3%. Even after Thursday’s rout, major indexes remained higher for the year.
Sources & Credits
- Associated Press via WCNC: A brutal sell-off for AI stocks sends Wall Street reeling
- Associated Press via Yahoo Finance: How major US stock indexes fared Thursday 11/5/2026
- Fortune: Tech stocks suffer biggest selloff since Covid
Image: Traders on the New York Stock Exchange floor (file photo), by Thomas J. O'Halloran, U.S. Library of Congress, public domain, via Wikimedia Commons.
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