Nasdaq 100 Falls 6.4%, Erasing $2.3 Trillion in Market Value
Key Facts
The Nasdaq 100 fell 6.4% in Thursday’s session, November 5, erasing $2.3 trillion in market value, its largest such loss, according to Bloomberg. Shares of companies involved in building AI data centers led the Wall Street sell-off, the Associated Press reported. In a broader sign of pressure on technology stocks, the Nasdaq Composite fell 5.5%, its biggest drop since the sell-off that followed the April 2025 tariffs, according to Reuters. The decline came as investors reassessed spending forecasts for AI infrastructure and how quickly that spending could turn into profits. Risk aversion also spread to the bond market, where the 10-year U.S. Treasury yield fell.
The Associated Press said concerns grew over the possibility that data-center projects could be halted after Democrats’ victories in the U.S. midterm elections. Reuters noted that a shift in unified control of both chambers of Congress from one party to another could add uncertainty to markets. The news agency quoted Wells Fargo strategist Sameer Samana as saying the shift could prompt markets to wait. Political concerns coincided with investors’ questions about how quickly massive AI spending could generate returns. Shares of companies involved in building data centers were among those at the forefront of selling pressure during the session.
The decline had also emerged before Thursday’s session: Reuters said the Nasdaq Composite lost more than $2.5 trillion in market value during October, as investors questioned how quickly AI infrastructure investments would generate profits. In the latest session, Nvidia fell 9.3% and was the biggest drag on the S&P 500, according to the Associated Press. The stock’s decline reflects the spread of selling to one of the most prominent companies tied to the AI boom. Reuters estimated that leveraged exchange-traded funds were on track to sell about $47 billion in stocks through Thursday’s close to rebalance their portfolios. Most of the expected selling was attributed to funds focused on technology and AI.
In the bond market, the 10-year U.S. Treasury yield fell to 4.84% on Thursday, from 4.90% late Wednesday. The Associated Press said the drop in the yield could signal investors’ move toward the relative safety of Treasuries as stocks fell. Index moves showed a divergence between the two Nasdaq benchmarks: the Nasdaq 100 fell 6.4%, while the Nasdaq Composite dropped 5.5%. Market coverage linked the decline in stocks to broad selling that hit technology companies tied to AI. The yield fell in the same session that pressure on growth stocks intensified.
Amid debate over whether the decline could continue, Interactive Brokers chief strategist Steve Sosnick told Reuters it was still too early to judge that markets had bottomed. He added that the move could be closer to a correction if economic expectations were not affected. In the previous employment data, nonfarm payrolls increased by 29,000 in September, and the unemployment rate was 4.2%; the Bureau of Labor Statistics said both indicators changed little during the month. The next report, for October, was scheduled for release on November 6, 2026, at 8:30 a.m. U.S. Eastern time. The release was scheduled after coverage of the session was published, putting the next labor-market data among the figures markets were awaiting.