The Nasdaq fell about 5% on Thursday as chip stocks tumbled. The slide erased all of Wednesday’s gains.
The Nasdaq Composite fell about 5% on Thursday, Nov. 5, as a sell-off in chip and AI stocks wiped out the previous day’s post-election rally, Yahoo Finance reported. By 2:38 p.m. Eastern time (3:38 p.m. AST), the Nasdaq was down about 5%, the S&P 500 about 3.9% and the Dow Jones Industrial Average about 3.1%, with roughly 80 minutes left in the session.
The PHLX Semiconductor index dropped about 10%, with Nvidia, Micron, AMD and Broadcom among the hardest hit, Yahoo Finance said. AMD fell about 15% and Micron about 12%. The S&P 500 lost more than US$2 trillion in market value by midmorning, according to Yahoo. The CBOE Volatility Index surged as much as 65%, which Futurum Equities strategist Shay Boloor called its biggest one-day jump in over two years, as cited by Yahoo Finance.
The decline reversed Wednesday’s rally, when the Dow gained 3% after Democrats won control of both chambers of Congress, Yahoo reported. It said the Nasdaq erased its entire post-election gain within minutes on Thursday, and that the Dow was on pace for its worst second session after a midterm election in data going back to 1896. Yahoo reported that investors were weighing what Democratic control could mean for AI spending and data-center regulation.
Kevin Mahn, chief investment officer at Hennion & Walsh, said “there’s going to be more choppiness ahead,” according to Yahoo Finance. AMD CEO Lisa Su told Yahoo Finance she does not see AI chip demand slowing and views the market’s reaction as short-sighted. Yahoo said the Nasdaq was on track to close in correction territory, a drop of at least 10% from a recent high, and had fallen below its 200-day moving average.
Bitcoin briefly fell below US$76,000, and software stocks including Palantir and CrowdStrike dropped more than 10% at their lows, Yahoo reported. Investors now turn to Friday’s U.S. employment report.
Yahoo Finance’s