Dow plunges 1,800 points, Nasdaq enters correction in AI trade meltdown
US shares plunged on Thursday as AI and chip shares offered off, erasing the good points from Wednesday’s post-election rally.
The Dow Jones Industrial Average (^DJI) tumbled 3.4%, or greater than 1,800 factors. The S&P 500 (^GSPC) fell 4.3%, and the Nasdaq Composite (^IXIC) dropped 5.5%, with the tech-heavy index closing in correction territory.
The Nasdaq-100 (^NDX) fell 6.3%, erasing $2.3 trillion in market worth.
The PHLX Semiconductor index (^SOX) plummeted 12% as Nvidia (NVDA), Micron (MU), and different chip names sank. Wall Street unloaded this year’s AI winners, whereas large-cap tech shares noticed the worst day for the reason that COVID-19 pandemic sell-off.
Investors continued to process the Democrats’ sweeping victory on Tuesday and its implications for markets and the economy. Amid aid that election uncertainty has been eliminated, the inventory market continues to type out the perceived winners and losers of a regime change on Capitol Hill.
Oil costs rose amid uncertainty that President Trump would pursue a take care of Iran to finish the struggle in the Middle East. Optimism grew in a single day after Vice President JD Vance mentioned, “The reason we lost [the midterm elections] is the war,” in a post on X suggesting the get together ought to push for a decision to the battle. Brent crude oil (BZ=F) costs traded round $98 per barrel, whereas US benchmark WTI crude (CL=F) stood at $90 per barrel.
51,523.06 -1,833.06 (-3.44%)
At close: November 5 at 4:35:51 PM EST
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A report from Challenger, Gray & Christmas confirmed layoff plans in October fell to the bottom degree since 2023 as firms turned their consideration to retaining current workers, setting the scene for Friday’s key employment report.
On the earnings calendar, Duke Energy (DUK), Airbnb (ABNB), and Lumentum (LITE), amongst others, report outcomes.
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Nasdaq falls under 200-day shifting common. Expect extra choppiness, strategist says.
The Nasdaq Composite (^IXIC) simply fell under its 200-day shifting common, in keeping with AlphaSpace information (see chart under).
Several particular person names, reminiscent of Nvidia (NVDA), additionally broke by way of their 200-day averages, a technical indicator that tracks a inventory’s long-term pattern.
“I think this has been brewing for quite some so much time because there have been so many investors poking at this perceived AI bubble, almost hoping it’s going to burst, Hennion & Walsh chief investment officer Kevin Mahn told Yahoo Finance’s Market Hang.
“So any such volatility should not essentially come as a shock to anyone … however there’s going to be extra choppiness forward,” Mahn added.
Palantir and CrowdStrike stocks tumble as Wall Street dumps software’s AI winners
Wall Street is dumping software’s AI winners and mostly leaving the losers alone. Palantir (PLTR) and CrowdStrike (CRWD) are both down more than 10% at their lows Thursday, while Salesforce (CRM) and Adobe (ADBE) are barely moving.
The sell-off that slaughtered chip stocks has spread to the software names most tied to the AI build-out. Palantir has shed about $40 billion in market value and is on pace for its worst day since February. The stock is now roughly a quarter below its Oct. 9 record and testing its 200-day moving common.
It has plenty of company. Cloudflare (NET), Rubrik (RBRK), Okta (OKTA), Palo Alto Networks (PANW), and Oracle (ORCL) are all posting steep losses, and Cloudflare is on pace for its worst day since May.
AlphaSpace heatmap Chip stocks get slaughtered as Wall Street heads for its worst post-midterm day since 1896
Wall Street’s midterm celebration lasted one day. Chip stocks are getting taken to the woodshed Thursday, and the Dow Jones Industrial Average (^DJI) is heading for its worst second session after a midterm election in data going back to its start in 1896.
It took the Nasdaq Composite (^IXIC) six minutes to erase its entire post-election rally. Then the selling got worse.
The tech-heavy index is down more than 5% in late-morning trading, and the S&P 500 (^GSPC) is off more than 3%. Both are on pace for their worst day since the April 2025 tariff crash.
The S&P 500 shed more than $2 trillion in market value by midmorning Thursday, with Nvidia, Broadcom, Micron, and AMD among the hardest hit. · Yahoo Finance Investors purchased shares Wednesday after Democrats won control of both chambers of Congress, helped by falling oil costs and decrease Treasury yields. Now the main focus is on what a Democratic Congress might imply for the AI buildout, and in specific for the data centers driving it.
The S&P 500 is on pace for its worst second day after a midterm in data going back nearly a century. The previous low came in 2002, when the index fell about 2.3%.
This week has an echo from 1896. The day after William McKinley won the White House that November, the Dow jumped about 4.5%, then gave back about 2% the next session. On Wednesday, the Dow jumped 3%, its best day after a midterm since 1982.
Nasdaq plunges 4% amid chip stock wipeout
Stocks began diving on Thursday morning as chip stocks sold off, erasing roughly $2 trillion in market cap and reversing the gains made in yesterday’s post-election rally.
The Nasdaq fell roughly 4%, the S&P 500 dropped 2.3%, and the Dow shed over 700 points, or 1.4%.
Nvidia (NVDA), Micron (MU), and AMD (AMD) fell over 6%, 12%, and 13%, respectively.
Here’s a look at the wipeout hitting tech, AI, and chip stocks:
Corporate earnings are growing like it’s 1984 — and that’s bad news for anyone waiting on lower rates
If you’re waiting for lower rates to buy a house, refinance, or pay down a credit card, corporate America may have bad news for you. Profits are growing so fast that one top economist says the economy could run at a pace last seen in 1984.
S&P 500 (^GSPC) earnings are up practically 40% from a yr in the past, Apollo chief economist Torsten Sløk wrote in a Nov. 3 note. The economic system is rising far more slowly, up about 6% in nominal terms, before adjusting for inflation. Strip out inflation and real GDP grew at a 3.4% annual rate in the third quarter. (Disclosure: Yahoo is a portfolio company of funds managed by affiliates of Apollo Global Management.)
By his math, “the present tempo of earnings progress is in step with nominal GDP progress of 10%,” Sløk wrote.
That would mean adding more than $3 trillion to a $33 trillion economy in a year. Outside the pandemic rebound of 2021-2022, the US hasn’t grown that fast since 1984, according to Yahoo Finance calculations from Commerce Department information.
US nominal GDP, percent change from a year earlier, quarterly, 1980 through Q3 2026 · US Bureau of Economic Analysis, Apollo, Yahoo Finance
