US Markets Plunge as Semiconductor Rout Erases $3.5 Trillion in Value

Key Facts

The Nasdaq dropped 5.5% and the S&P 500 sank 4.4% as a sell-off in technology and AI stocks intensified. Nikkei reported that approximately $3.5 trillion in global market capitalization evaporated following a sharp decline in semiconductor stocks. According to Chosun Ilbo, the U.S. midterm election results raised concerns regarding potential halts in data center construction projects, impacting sentiment surrounding AI investment returns.

The market volatility follows political shifts that may lead to regulatory changes affecting AI infrastructure. Alongside the equity rout, economic data released on November 5, 2026, showed initial jobless claims falling to 189,000, while nonfarm productivity grew by 3.6% for the quarter. Market sentiment remained pressured by the political outcome of the midterm elections held on November 3, 2026.