TL;DR
Get smart everyday buys delivered free with Prime
- Fast, free delivery on millions of items
- Prime Video, Amazon Music and more included
- Member-only deals all year
U.S. stocks fell sharply Thursday, Nov. 5, 2026, reversing the prior session’s post-election gains as investors sold AI, technology and semiconductor shares. The Dow fell 2.2%, the S&P 500 lost 3.3% and the Nasdaq dropped 5%; the semiconductor index fell 11%, while oil rose amid uncertainty over the Middle East conflict.
U.S. stocks plunged Thursday as investors sold AI, technology and semiconductor shares, wiping out the gains from the previous day’s post-election rally. In figures reported by Yahoo Finance on Nov. 5, the Dow fell 2.2%, the S&P 500 dropped 3.3% and the Nasdaq slid 5%; the Nasdaq was on track to close in correction territory.
The retreat accelerated after a mixed start to trading. Yahoo Finance reported that the Dow initially rose 0.6%, while the S&P 500 slipped 0.3% and the Nasdaq fell 1%. As technology stocks weakened, those losses deepened. At an earlier point in the session, the Dow was down more than 700 points, or 1.4%, the S&P 500 had fallen 2.3%, and the Nasdaq was lower by about 4%.
Chip shares led the decline. The PHLX Semiconductor Index dropped 11%. In the report’s intraday update, Nvidia was down more than 6%, Micron more than 12% and AMD more than 13%. Yahoo Finance said the sell-off erased roughly $2 trillion in market value across stocks; it did not provide a more detailed calculation or specify a comparison period for that estimate.
Market volatility rose as the selling spread. Yahoo Finance reported that the CBOE Volatility Index surged more than 65%, reaching as high as 27.45. The report described that as the gauge’s biggest one-day jump in more than two years, citing Futurum Equities chief market strategist Shay Boloor. The index measures expected near-term volatility in the S&P 500; it does not itself explain the cause of a market move.
Tech Losses Reverse Election Gains
The sharp reversal matters because it shows that a broad market rally after an election can fade quickly when investors reassess company and sector risks. The previous day’s gains had followed Democrats’ reported victory in both chambers of Congress. By Thursday, investors were weighing what a change in congressional control could mean for AI infrastructure spending, technology regulation and the companies most exposed to those policies.
The concentration of losses in semiconductor and technology shares drove the indexes lower, particularly the Nasdaq, which has substantial exposure to those industries. The reported 5% decline put the index on track to close in correction territory, but the source did not confirm a closing level or say that a correction had been formally reached. The distinction matters: the figures were intraday reporting, not final closing results.
Other markets also reflected the unsettled session. Bitcoin briefly fell below $76,000 and was down more than 5% before stabilizing above that level, according to Yahoo Finance. Oil moved higher, with Brent trading around $97 a barrel and U.S. benchmark WTI around $90. Those prices and the equity figures are snapshots in a developing trading day, not final settlements.
Products Worth Considering
Dell Pro 14 Plus P1425 14-Inch Portable Monitor
HP OfficeJet 250 Wireless Mobile All-in-One Inkjet Printer
Apple MacBook Air 13.6-inch with M5 Chip, 16GB Memory, 512GB SSD, Sky Blue
As an affiliate, we earn on qualifying purchases.
After Wednesday’s Post-Election Rally
U.S. stocks had rallied Wednesday after election results showed Democrats winning both chambers of Congress, according to the source report. Investors had welcomed the removal of some election uncertainty, but the next session brought a reassessment of how the results might affect sectors and policy. Yahoo Finance said the market was still sorting out perceived winners and losers from the change in control on Capitol Hill.
That reassessment included questions about the outlook for AI-related investment and regulation. The report said chip and data-center shares were among the weakest Thursday. It also noted that Qualcomm fell after releasing quarterly results, while AppLovin moved in the opposite direction: its shares surged 23% in premarket trading after the company reported results and a fourth-quarter outlook above analyst expectations, according to figures cited by Yahoo Finance.
Energy markets were responding to a separate source of uncertainty. Oil prices rebounded as investors considered whether President Donald Trump would pursue a deal with Iran to end the war in the Middle East. The report cited Vice President JD Vance saying in a post on X, “The reason we lost [the midterm elections] is the war,” and said the comment helped lift overnight optimism about the possibility of a push for a resolution. It did not establish that negotiations or a deal were underway.
Closing Levels and Policy Outlook
The figures available in the source are intraday snapshots, including a report updated at 5:37 p.m. GMT+1; final closing prices and the Nasdaq’s closing status were not supplied. It is therefore not confirmed by this material whether the index ended the session in correction territory or how much of Wednesday’s gains remained by the close.
The reasons for the sell-off are also not established as a single cause. The report describes pressure on AI and chip shares and investor questions about spending and regulation, but does not identify one specific event that triggered the drop. It gives no detailed explanation for each company’s share-price movement. The timing and terms of any U.S.-Iran diplomatic effort remain unclear, as do the longer-term market effects of the election results.
Investors Await Jobs and Earnings
Investors were looking ahead to Friday’s employment report. A separate report from Challenger, Gray & Christmas said company layoff plans in October fell to their lowest level since 2023, as employers turned their attention to retaining existing workers. That measure is not the government jobs report, and the source did not provide its figures or a forecast for Friday’s release.
Corporate results were also on the calendar. Yahoo Finance listed Duke Energy, Airbnb and Lumentum among companies reporting earnings. Investors will be watching whether those updates, incoming economic data and any further developments in technology policy or the Middle East alter the factors behind Thursday’s trading. The source did not give a forecast for the next session or confirm what direction stocks would take.
Key Questions
Why did U.S. stocks fall on Thursday?
Yahoo Finance reported a broad sell-off in AI, technology and semiconductor shares, which erased Wednesday’s post-election gains. The report said investors were also weighing the possible effects of the election results on AI spending and regulation; it did not identify a single confirmed trigger.
How much did the major indexes decline?
In the reported figures, the Dow fell 2.2%, the S&P 500 lost 3.3% and the Nasdaq dropped 5%. These were figures in a report updated during Thursday’s session, not confirmed final closing results.
Were chip stocks hit harder than the broader market?
Yes. The PHLX Semiconductor Index fell 11%. In an earlier intraday update, Yahoo Finance reported declines of more than 6% for Nvidia, 12% for Micron and 13% for AMD.
Did the Nasdaq officially enter a correction?
The report said the Nasdaq was on track to close in correction territory, but it did not provide the final close or confirm that the index ended the day there.
What is the next major market event?
The source pointed to Friday’s U.S. employment report, after noting that October layoff plans had fallen to their lowest level since 2023, according to Challenger, Gray & Christmas. It also listed upcoming results from companies including Duke Energy, Airbnb and Lumentum.
Source: finance.yahoo.com
