Dow Sheds 1,833 Points, Nasdaq Closes in Correction as AI Selloff Deepens
Thursday’s selloff accelerated into the close, erasing Wednesday’s post-midterm rally and sending the Nasdaq Composite to its worst single-day loss since April 2025.
Wall Street’s Thursday rout worsened into the closing bell, with the Nasdaq Composite finishing down 5.52% — its worst day since April 2025 — and closing at least 10% below its October 6 record high, confirming the index’s first correction of the AI-boom era. The Dow Jones Industrial Average shed 1,833.06 points (-3.44%) to 51,523.06, and the S&P 500 dropped 334.89 points (-4.36%) to 7,353.73. All three indexes gave back essentially the entire post-midterm relief rally logged just one session earlier, a reversal strategists called historic in its speed.
What Drove the Rout
The proximate trigger was Tuesday’s midterm elections, which handed Democrats sweeping wins and fueled fears that AI data-center construction — blamed in several campaigns for rising electricity prices — could face new restrictions under the incoming Congress and several newly elected state officials. “The obvious catalyst for the sharp selloff is that markets are pricing in the midterm results, after yesterday saw markets rise across the board as the political risk premium unwound,” said Jakub Rochlitz, a market analyst at eToro, adding that “the AI infrastructure buildout will become slower and more expensive, which is rewriting growth expectations across the whole supply chain.” Jed Ellerbroek, a portfolio manager at Argent Capital Management, told Reuters the move looked like “the capitulation phase for the data center capex beneficiary stocks, especially the semiconductors,” noting “the magnitude of the moves is outsized.” See FactSheets’ Thursday-morning coverage of the selloff’s opening leg for how the move began.
Which Stocks Got Hit Hardest
Nvidia fell 9.26% to $181.60, while Tesla dropped 10.77% to $343.69 and SpaceX (SPCX) slid 9.05% to $123.62. Mega-cap tech wasn’t spared either: Meta Platforms fell 3.96% to $605.08, Alphabet slipped 2.20% to $282.57, and Amazon eased 2.19% to $260.21. The Philadelphia Semiconductor Index plunged more than 12%, and AI-datacenter names IREN, Applied Digital, and Nebius Group each fell more than 14%. Memory maker SanDisk tumbled 20% despite reporting strong quarterly earnings, as investors sold the entire storage and data-center supply chain regardless of individual company results. Utilities tied to data-center power demand, including GE Vernova and Constellation Energy, were also caught in the rout.
Selloff Spreads to Asia
The rout followed U.S. markets overseas. Japan’s Nikkei 225 fell more than 4,100 points, or 6.7%, dropping below 60,000 for the first time since mid-May and entering bear-market territory. South Korea’s Kospi fell as much as 8.7% intraday before closing down roughly 6%, triggering a circuit breaker, with chipmakers SK Hynix (-13.8%) and Samsung Electronics (-11.0%) leading the decline. “European markets are facing another difficult session following Thursday’s heavy selloff on Wall Street,” said Daniela Hathorn, senior market analyst at Capital.com, who flagged “elevated valuations, uncertainty around AI monetization and persistently high Treasury yields” as the forces still weighing on sentiment heading into Friday.
Why It Matters
Thursday’s close turns what began as an intraday scare into a confirmed correction, underscoring how concentrated the market’s two-year rally has become around a small group of AI infrastructure names tracked on FactSheets’ Nvidia and Tesla fact sheets. For how futures and the October jobs report are shaping Friday’s session, see FactSheets’ companion coverage of the rebound and the Fed’s rate-path dilemma. For the full roster of names FactSheets tracks, visit the Stock Fact Sheets hub, and for ongoing coverage of the sector see FactSheets’ Nvidia and Market categories.
This article is for informational purposes only and does not constitute investment advice. Closing index levels and stock prices cited above reflect November 5, 2026 market close and are subject to change; always do your own research or consult a licensed financial advisor before making investment decisions.
About the Author
