On Thursday 5 November 2026, US stocks fell hard as technology and chip shares sold off. The S&P 500 lost 4.36%, the Dow 3.44% and the Nasdaq Composite 5.52%, with the Nasdaq closing in correction territory.
Key takeaways
- US stocks fell on 5 November 2026, led by technology and chip shares.
- The Nasdaq closed more than 10% below its 6 October record close.
- Reuters reported investors feared tighter AI rules, which is a concern, not policy.
What happened to US stocks on 5 November 2026
The session started quietly and got worse through the day. At the opening, the Dow rose 330.63 points to 53,686.75. The S&P 500 edged down 0.17% to 7,675.76. The Nasdaq Composite fell 0.77% to 25,537.57. Chip and data-centre stocks weighed on technology shares, Reuters reported. By 9:57 a.m. ET, the Dow was down 0.66%, the S&P 500 down 1.66% and the Nasdaq down 3.09%.
The losses widened into the close. Reuters reported that all 11 S&P 500 sectors finished lower and that technology fell 7.3%. Reuters also reported an estimated roughly $3 trillion decline in the market value of S&P 500 companies during the selloff.
One timing note for readers in the Nordics. The New York Stock Exchange's regular session that day ran from 9:30 a.m. to 4:00 p.m. Eastern Time. That close landed at 10:00 p.m. in Sweden, Norway and Denmark, and 11:00 p.m. in Finland.
How far the Dow, S&P 500 and Nasdaq fell
Here is the picture at the end of the day.
| Index | Close (5 Nov 2026) | Change | Point change | What it tracks |
|---|---|---|---|---|
| Dow Jones Industrial Average | 51,523.06 | −3.44% | −1,833.06 | - |
| S&P 500 | 7,353.73 | −4.36% | −334.89 | - |
| Nasdaq Composite | 24,315.00 | −5.52% | −1,421.52 | Technology-heavy US market |
Figures at the US market close on 5 November 2026.
A "point" move is not comparable across indexes. The Dow's 1,833.06-point decline was smaller in percentage terms than the Nasdaq's 5.52% fall. Percentages are the fair comparison.
If you want the mechanics of tracking the broad US market from Europe, see our guide to investing in the S&P 500.
Why AI and chip shares led the sell-off
Chip shares took the heaviest hit. The Philadelphia Semiconductor Sector Index, which tracks listed chip companies, fell 12.25% to 9,011.14 on 5 November 2026. The Nasdaq Composite fell 5.52% that day.
The first is politics. Reuters reported that investors linked the sell-off to Democrats' sweeping midterm wins, fearing tougher AI regulation and slower or restricted data-centre construction, which would threaten the AI infrastructure buildout. Fox Business described possible restrictions as concerns and proposals, not enacted policy. No data-centre restrictions had been adopted.
The second is company results. Reuters reported that Qualcomm's fiscal fourth-quarter smartphone-chip sales missed estimates, adding pressure to chip shares.
There is also a simple mechanic behind sharp moves in AI-linked shares. When a price already assumes years of heavy spending on data centres and chips, any doubt about that spending moves the price more than this quarter's profit does. For background on Nvidia, see our explainer on buying Nvidia stock from Europe.
Why the Nasdaq fell more than the Dow
The answer is what each index holds. The Nasdaq Composite is technology-heavy, so a day when chip and AI shares drop hits it hardest. The Dow includes companies across many industries, which spreads the damage.
The numbers show it. On 5 November the Nasdaq fell 5.52%, the S&P 500 4.36% and the Dow 3.44%. The S&P 500 landed in between.
Sell-off, correction or crash
These three words get used as if they mean the same thing. They don't.
A sell-off is simply a broad wave of selling that pushes prices down. That happened across all three indexes.
A correction has a common definition: an index closing 10% or more below a recent record. The Nasdaq Composite closed in correction territory on 5 November 2026, more than 10% below its 6 October record close, Reuters reported.
A crash has no agreed level. People use it for any very sharp fall, which is why the headline word and the measured term don't line up.
What is confirmed and what is interpretation
| Confirmed | Reported interpretation |
|---|---|
| The three index closes and percentage moves | AI regulation concerns after the midterms |
| The chip index fell 12.25% to 9,011.14 | Fears of slower data-centre construction |
| All 11 S&P 500 sectors fell, technology down 7.3% | Qualcomm's miss as added pressure on chip shares |
| The Nasdaq closed in correction territory | An estimated $3 trillion fall in S&P 500 market value |
What comes next was still open. Fox Business said the thing to watch was whether election-related policy concerns and market selling continued, and did not report that any data-centre restrictions had been adopted. The morning after, on 6 November, Reuters reported that Nasdaq futures climbed and chip stocks gained ground, a pre-market move rather than a confirmed recovery in that day's closing indexes.
Risks
- Technology-heavy indexes can fall faster than broad ones, as the Nasdaq's 5.52% drop against the Dow's 3.44% showed.
- Policy concerns about AI rules and data centres were proposals, not enacted rules, so they can change in either direction.
- A pre-market bounce, like the one Reuters reported on 6 November, is not a confirmed recovery.
- Index levels fall as well as rise, and a single day's close tells you nothing about the next one.
This article is for information only and is not investment advice.
Frequently asked questions
Was 5 November 2026 a stock market crash?
It was a sharp sell-off, and the Nasdaq closed in correction territory. "Crash" has no agreed technical definition, so nobody can confirm or deny it with a number. What can be measured: the S&P 500 fell 4.36%, the Dow 3.44% and the Nasdaq Composite 5.52% at the US close.
How much did the Nasdaq fall on 5 November 2026?
The Nasdaq Composite fell 5.52%, or 1,421.52 points, to close at 24,315.00. That left it about 11.90% below its 6 October record close of 27,599.89. Nasdaq's own page shows the point change as −1,421.51, a small rounding difference.
Did every part of the US market fall that day?
Yes, by sector. Reuters reported that all 11 S&P 500 sectors finished lower, with technology down 7.3%. Earlier in the session, technology and consumer discretionary were among the leading decliners.
What happened the next morning?
On 6 November, Reuters reported that Nasdaq futures climbed and chip stocks gained ground after the sell-off. Futures trade before the main session opens. They show sentiment rather than confirm a recovery.
Sources
- Reuters: Chip and data-centre stocks weigh on technology shares (5 November 2026)
- Reuters: S&P 500 futures steady after midterm rally; Nasdaq lags on chip weakness (5 November 2026)
- Nasdaq: PHLX Semiconductor Sector Index
- Reuters: Democrats vow to rein in Trump as he shows off White House ballroom (5 November 2026)
- Fox Business: US stocks sell off sharply as AI and chip shares tumble (5 November 2026)
- Reuters: Nasdaq futures rise after steep AI sell-off; chip stocks stabilize (6 November 2026)
Cover photo by Austin Distel on Unsplash.
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