The Nasdaq Composite fell 1,421.52 points, or 5.52%, to close at 24,315.00 in New York on Thursday, 5 November. The technology-heavy index recorded its biggest daily decline since April 2025 as investors reassessed spending on artificial intelligence and weighed the prospect of tighter restrictions on new data centres.
Chipmakers lead the losses
The Nasdaq opened at 25,558.11 and fell as low as 24,262.14 before finishing just above its session low. The close left the index 11.9% below its record closing level of 27,599.89 on 6 October, beyond the 10% threshold commonly used to define a market correction.
Nvidia fell 9.3% and Advanced Micro Devices dropped 17.3%, while the Philadelphia Semiconductor Index lost more than 12%. The selling extended beyond chipmakers. CoreWeave, which supplies cloud computing capacity for AI workloads, fell 9.8%, and power equipment maker GE Vernova lost 7.5%.
Data centre spending comes under scrutiny
Democratic victories in the US midterm elections sharpened investor attention on proposals to limit or pause data centre construction in some markets. Rising electricity costs have become a point of contention in communities weighing new projects. Delays could affect when developers place orders for chips and power equipment.
Investors were already questioning how quickly large technology companies could turn their AI investments into profits. Some have borrowed to finance expansion, and recent earnings from Alphabet and Meta did little to ease concerns about returns on that spending.
Wall Street gives up Wednesday’s gains
The sell-off erased the previous session’s gains across the major US indices. The S&P 500 fell 4.36% to 7,353.73, while the Dow Jones Industrial Average dropped 1,833.06 points, or 3.44%, to close at 51,523.06. The Russell 2000 index of smaller companies fell 4.4%.
US government bond prices rose as equities fell, taking the benchmark 10-year Treasury yield to 4.84% from 4.90% late on Wednesday. The Nasdaq ended Thursday down 4.4% for the week and up 4.6% for the year.
NewsHub Finance | Markets | 6 November 2026
The Nasdaq Composite fell 1,421.52 points, or 5.52%, to close at 24,315.00 in New York on Thursday, 5 November. The technology-heavy index recorded its biggest daily decline since April 2025 as investors reassessed spending on artificial intelligence and weighed the prospect of tighter restrictions on new data centres.
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