U.S. stocks fell sharply on Thursday, Nov. 5, as investors sold AI and chip shares over concerns about data-center spending and possible stricter regulation, and the Nasdaq dropped 5.5% to more than 10% below its peak; futures rose early Friday.
The Nasdaq Composite closed at 24,315, more than 10% below its October record. It had its steepest one-day drop since April 2025. The S&P 500 fell 4.4%.
The Dow Jones Industrial Average lost about 1,833 points, or 3.4%. Every S&P 500 sector finished lower. Chipmakers suffered much of the damage.
Nvidia fell more than 9%. AMD and Micron had losses of more than 10%. The seven largest U.S. technology companies, known as the “Magnificent Seven,” lost more than $1 trillion in combined market value during the session.
The sell-off erased gains from Wednesday’s post-election rally. Investors considered whether Democrats’ midterm victories could lead to closer scrutiny of AI and slow data-center development. The market reaction also reflected concern about the size of companies’ investments in AI infrastructure.
Investors also questioned whether those investments would generate enough returns. Early Friday, Nasdaq-100 futures rose 1.7%. S&P 500 futures gained 0.4%.
Dow futures remained lower. Investors awaited the October jobs report.