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TL;DR
The Nasdaq Composite fell 5.52% on Nov. 5, its steepest one-day decline since April 2025, while the Nasdaq-100 dropped 6.36%. Investors focused on whether election results could bring tighter oversight and higher costs for AI data centers, but no new federal rules have been passed and forecasts of project delays remain uncertain.
The Nasdaq Composite fell 5.52% on Thursday, Nov. 5, its largest one-day decline since April 2025, as investors weighed whether US election results could make AI data center projects harder or more costly to build. The Nasdaq-100 dropped 6.36%, and Reuters estimated that the move erased about $2.5 trillion in market value from the 100-company index.
Nasdaq’s published closing data put the Composite at 24,315.00, down 1,421.51 points. The Nasdaq-100 closed at 26,629.81, down 1,807.36 points. The Composite’s last larger daily fall was a 5.82% decline on April 4, 2025, during the tariff shock. Its Nov. 5 close was also 11.9% below its Oct. 6 record, putting the index in correction territory, commonly defined as a fall of at least 10% from a recent peak.
The decline was sharpest in chip stocks. The PHLX Semiconductor Index fell 12.25%; Reuters reported Nvidia shares fell 9% and AMD fell 17%. Several data center operators lost more than 14%, according to Reuters. Large technology companies also retreated: Amazon and Alphabet each fell 2.2%, while Microsoft dropped 3.6%, the news agency reported.
The election-related concern was that changes in Congress and state governments could affect permits, electricity access, tax incentives and community approval for data center construction. Those issues matter to companies investing heavily in AI infrastructure. However, the market move reflects investor concern, not a confirmed policy change: no new federal law governing data center development has passed.
Infographic 01 · The day in numbers
The Nasdaq's worst day in 19 months
Chips and data center builders led the fall. The dollar figure in the headlines belongs to the Nasdaq-100, the 100 largest non-financial companies on the exchange.
Nasdaq Composite on Thursday, 5 November 2026: down 1,421.51 points to 24,315.00. The biggest one-day fall since 4 April 2025, 19 months earlier.
The five worst Composite days since March 2025
Daily change, closing values
Sources: Nasdaq Global Indexes (COMP, NDX, SOX closing data, retrieved 6 Nov 2026) · Reuters, 5 Nov 2026 (via The Straits Times). History checked back to 25 Mar 2025. Market value is Reuters’ calculation. Not investment advice.
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AI Infrastructure Faces Policy Risk
The selloff shows that investors are weighing more than AI demand and company earnings. The industry’s expansion depends on large facilities, reliable electricity, water, grid connections and local approvals. If those inputs become harder to secure or more expensive, companies may need to revise project schedules and spending plans, with possible effects on data center developers, utilities and chip suppliers.
State officials can shape some of those conditions through utility regulation, project approvals and tax incentives. Congressional control can also influence hearings and oversight. That gives election results potential relevance to the economics of AI construction, though the market’s immediate reaction does not establish that projects will be canceled or that costs will rise. The share-price declines show investors repricing risk, not a measured change in future construction.
The distinction matters for readers tracking the technology sector: a steep index decline can reflect expectations and uncertainty as well as changes in current business performance. The reported $2.5 trillion figure applies to the Nasdaq-100, not every company listed on Nasdaq. It is an estimate of market value lost, not cash withdrawn from the companies.
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Election Results and Project Approvals
The selloff followed a mixed session on Wednesday, Nov. 4. The Composite rose 1.44%, even as data center operators and power companies fell, Reuters reported. Amazon and Microsoft rose about 6% during that session. One market interpretation was that existing data centers might become more valuable if fewer new facilities were built. That view reversed on Thursday as broader technology shares dropped.
According to the source report’s account of Reuters, Democrats won control of both chambers of Congress. Analysts cited by Reuters expect the change to bring more hearings and investigations into AI development. Congressional oversight could raise scrutiny, but it does not by itself change permitting rules or impose new costs.
The National reported that Democrats flipped five governorships: Texas, Georgia, Ohio, Iowa and Nevada. Its analysis of Cleanview project data said those states account for 37% of planned US data center capacity, with Texas representing 22.8%. The National also reported that incoming governors in Texas, Georgia and Ohio had pledged pauses or restrictions on large projects. These are reported campaign positions, not proof that statewide pauses have taken effect.
Local votes added another source of uncertainty. The source report said unofficial results showed 46 of 47 measures in small towns across 10 states going against data center proposals, including measures for bans, size limits or pauses. Because those results were unofficial and the measures varied, they should not be treated as a single nationwide policy.
“The Nasdaq’s “deepest one-day drop since ‘Liberation Day’ in April 2025.””
— Reuters
Policy Changes Remain Unconfirmed
It is not yet clear whether the election results will lead to changes in federal or state policy, or how quickly any changes could affect specific projects. No new federal law has passed, and the source material says President Donald Trump retains veto power. Analysts cited in the report expect the possibility of political gridlock rather than sweeping federal changes.
The reported campaign pledges for pauses on large data centers do not establish that formal moratoriums are in force. The scope, timing and legal form of any state action remain unclear, as do the outcomes of local measures described as unofficial. The UBS estimate that around 30% of planned 2028 capacity additions could be at risk is a forecast; the material does not establish that those additions have been canceled or delayed.
It is also unclear how much of Thursday’s decline came specifically from election-related policy concerns rather than other market pressures. The source report identifies the election as a trigger, but does not provide a breakdown assigning a precise share of the losses to regulation fears. The price moves and index figures are confirmed in the cited market data; the explanation for the full selloff remains an interpretation.
Investors Watch Permits and Power
Investors and companies will be watching whether incoming governors pursue their stated positions, whether state regulators alter electricity or grid-connection decisions, and whether local authorities approve, restrict or pause individual projects. In Congress, the expected next development is greater oversight activity, according to analysts cited by Reuters; hearings or investigations would not by themselves amount to new binding rules.
For the market, upcoming company updates and project disclosures may help clarify whether developers expect changes to construction timelines, power costs or investment plans. Until officials take specific action and companies quantify its effects, estimates of capacity at risk remain forecasts. Thursday’s close establishes the scale of the selloff, but the practical policy impact is still unresolved.
Key Questions
How much did the Nasdaq fall on Nov. 5?
The Nasdaq Composite fell 5.52% to 24,315.00. The Nasdaq-100 fell 6.36% to 26,629.81, according to Nasdaq closing data cited in the source material.
What does the $2.5 trillion figure refer to?
Reuters estimated that about $2.5 trillion in market value was erased from the Nasdaq-100, which tracks 100 of the largest non-financial companies on the exchange. It is not a figure for every Nasdaq-listed stock.
Did the election change data center rules?
The source material reports election results and campaign pledges that could affect data center development, but says no new federal law has passed. Whether states or local governments will enact changes remains unsettled.
Are 30% of planned data center projects canceled?
No. The approximately 30% figure is a UBS estimate referring to planned 2028 capacity additions that could be at risk. It does not mean that 30% of projects have been canceled or that the estimate is a confirmed outcome.
Source: ThorstenMeyerAI.com
