Nasdaq falls 5.5% into correction as Democrats' midterm win fuels AI slowdown fears

Briefing by News4U · First published 2026-11-06 13:21:13 UTC

The Nasdaq Composite fell 5.5% on Thursday, its steepest one-day drop since April 2025, wiping $2.5 trillion from its value and pushing the index into correction territory after Democrats' midterm election victories raised expectations of tighter regulation on AI data-centre expansion. Chip stocks led the sell-off, with Nvidia down 9%, Advanced Micro Devices down 17%, SanDisk down 22% and Western Digital down 17%; data-centre operators Applied Digital, IREN and CoreWeave each fell more than 10%. The S&P 500 dropped 4.3% and the Dow Jones industrial average fell 3.4% to 51,868 points. [1] [2] [3] [4]

Sources

1. Stocks Erase Post-Midterm Elections Rally, Dragged Down by Tech

   NY Times · 2026-11-05 16:17:46 UTC · Summary only

2. Steep losses in semiconductors, Tesla, Space X

   RTÉ Business · 2026-11-05 16:24:42 UTC · Full text

3. Nasdaq sees worst day in 19 months as investors bet on AI slowdown after Democrats’ election triumph

   The Guardian · 2026-11-05 21:23:18 UTC · Full text

4. Investors wipe $2.5 trillion off Nasdaq on AI fears

   RTÉ Business · 2026-11-06 08:21:26 UTC · Full text

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