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.