EL7.AI
StocksMedium•5 November 2026•
1 min read

Nasdaq Enters Correction as Chip Stocks Slump and Bitcoin Retreats Post-Midterms

Key Facts

1The Nasdaq slid into correction territory as chip and AI stocks sold off by up to 11%.
2Bitcoin declined by 5.25% in tandem with the heavy sell-off in the technology sector.

The Nasdaq index slid into correction territory as chip and AI stocks sold off by up to 11%, CryptoTicker reported. The Philadelphia Semiconductor Index experienced a sharp decline of up to 11.41%, while Bitcoin declined by 5.25% in tandem with the heavy sell-off across the technology sector.

The market reaction followed the US midterm elections held on November 3, 2026, amid investor concerns regarding a potential slowdown in AI data center infrastructure buildouts. Adding to the pressure, data released on November 5, 2026, showed initial jobless claims fell to 189,000, coming in below the forecasted 196,000 and providing the Federal Reserve with less incentive to ease monetary policy.

Market participants are now focused on the upcoming Non-Farm Payrolls report scheduled for November 6, 2026, with a forecast of 65,000 jobs. Several Federal Reserve officials, including Williams and Bowman, are also slated to deliver speeches on the same day, which may offer further guidance on the interest rate outlook.

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