U.S. Stocks Close Sharply Lower: Nasdaq Drops 5.5% to Confirm a Correction as All Three Indexes Post Their Worst Day Since April 2025
U.S. stocks closed sharply lower on Thursday, November 5, as the selloff in chip and data center stocks spread across the market: the Nasdaq Composite fell 5.5 percent to close at 24,315, more than 10 percent below its record close of 27,599.89 on October 6, officially confirming a technical correction, while the Dow Jones Industrial Average and the S&P 500 also posted their worst day since April 2025.
The Dow Jones Industrial Average closed down 1,833.06 points, or 3.4 percent, at 51,523.06, wiping out all of Wednesday's 1,569-point gain; the S&P 500 fell 4.4 percent; and the Nasdaq 100 sank 6.36 percent, its worst day since March 2020. According to closing reports from CNN and Barron's, all three indexes had their worst session since April 2025.
The Philadelphia Semiconductor Index closed down 12.25 percent at 9,011.14, its biggest one-day drop in about six and a half years. Among individual stocks, Nvidia fell 9.3 percent, erasing its gains for the year; Micron Technology dropped about 17 percent, Advanced Micro Devices about 15 percent, Qualcomm 9.5 percent, Tesla 11 percent and SpaceX 9 percent, while data center operators CoreWeave and Nebius fell roughly 10 percent and 15 percent, respectively.
The selling was broad-based: all 11 sectors of the S&P 500 closed lower. The Cboe Volatility Index (VIX) surged roughly 60 percent, its biggest one-day jump in almost two years, to a seven-month high, while the yield on the 10-year U.S. Treasury note fell to 4.83 percent, its lowest level in two months.
The selloff was driven by the midterm election results and chip earnings: investors worried that the Democrats' sweep of both chambers of Congress in the midterm elections could bring tighter scrutiny of data center expansion, and Texas Governor-elect Gina Hinojosa campaigned on a temporary moratorium on new data centers and on eliminating related tax incentives. Qualcomm's results and outlook, which fell short of Wall Street estimates, added to the pressure on chip stocks.
The drop followed Wednesday's rally, when the Dow rose 1,569.40 points, or 3.00 percent, the S&P 500 gained 1.58 percent and the Nasdaq Composite added 1.44 percent on November 4. Investors next turn to the U.S. October nonfarm payrolls report due on Friday.
(Source: CNN)
Source: CNN
Published by GSM · USA (original Chinese edition)
Photo: 图：纽约证券交易所交易大厅（资料图）。照片：Carol M. Highsmith，美国国会图书馆收藏，公共领域，经 Wikimedia Commons。 / The trading floor of the New York Stock Exchange in New York (file photo). Photo: Carol M. Highsmith, Library of Congress collection, public domain, via Wikimedia Commons.
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- 2026-11-05U.S. Stocks Close Sharply Lower: Nasdaq Drops 5.5% to Confirm a Correction as All Three Indexes Post Their Worst Day Since April 2025This story
