S&P 500 Plummets 3.2% as AI Chip Stocks Lead Market Sell-Off
Key Facts
The S&P 500 index fell 3.2% on Thursday, November 5, 2026, marking its worst single-day performance since the 2025 tariff announcements. According to reports from reflector.com, the decline was driven by a massive sell-off in AI-related technology and semiconductor stocks.
U.S. midterm election results raised concerns regarding possible legislative moratoriums on further data center construction, triggering a liquidation in AI infrastructure infrastructure. This market volatility followed economic data released on November 5, 2026, showing initial jobless claims at 189,000, which was lower than the forecasted 196,000.
Market participants are looking ahead to the Nonfarm Payrolls report scheduled for Friday, November 6, 2026, with a forecast of 65,000 jobs. Several Federal Reserve officials, including Williams and Bowman, are also scheduled to deliver speeches on the same day.
Latest Updates · 2
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Update: The sharp sell-off in the semiconductor and AI sectors wiped out approximately $3 trillion in market value. Selling pressure intensified as concerns grew that newly elected Democratic governors might implement moratoriums on new data center construction.
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Update: Pressure on the technology sector intensified as AMD shares plunged 17% and Qualcomm fell 14% on November 5, 2026, following disappointing profit forecasts. These sharp losses in semiconductor stocks drove the Nasdaq index down by 6.4%, deepening the broader sell-off across U.S. markets.