TL;DR
Get business pricing on office and shipping supplies
- Business-only prices and quantity discounts
- Tax-exempt purchasing
- Multiple users, one account, clear invoices
U.S. stocks fell sharply Thursday, Nov. 5, as investors sold AI and semiconductor shares, wiping out gains from the post-election rally a day earlier. The Dow dropped 2.2%, the S&P 500 fell 3.3% and the Nasdaq slid 5% in Yahoo Finance’s late-session update; the semiconductor index fell 11%.
U.S. stocks fell sharply Thursday, erasing the previous day’s post-election rally as investors sold technology, artificial-intelligence and chip shares. In a late-session update, Yahoo Finance reported the Dow Jones Industrial Average was down 2.2%, or more than 1,200 points, the S&P 500 had fallen 3.3% and the Nasdaq Composite was down 5%, leaving it on track to close in correction territory.
The sell-off was concentrated in semiconductors. The PHLX Semiconductor Index fell 11%, while Nvidia, Micron and other chip stocks declined. Earlier in the session, Yahoo Finance reported that Nvidia was down more than 6%, Micron more than 12% and AMD more than 13%. The day’s declines reversed gains made after Democrats’ victory in Tuesday’s midterm elections, according to the live market report.
Trading shifted quickly. U.S. stocks opened mixed: the Dow initially rose 0.6%, while the S&P 500 slipped 0.3% and the Nasdaq fell 1%. Later updates showed losses widening. Yahoo Finance reported the Nasdaq down roughly 4% in an afternoon update before its late-session account put the decline at 5%. These are snapshots from different points in the session, not closing figures.
The CBOE Volatility Index, commonly called Wall Street’s fear gauge, surged more than 65% at one point to 27.45, Yahoo Finance reported, citing Futurum Equities chief market strategist Shay Boloor. Oil also rose: Brent crude traded around $97 a barrel and U.S. benchmark West Texas Intermediate around $90, amid uncertainty over whether President Donald Trump would pursue a deal with Iran to end the Middle East war.
Chip Losses Reversed the Rally
The scale of the reversal shows how quickly the election-driven advance gave way to selling in some of the market’s most influential technology shares. With chipmakers and other AI-linked companies weighing on the Nasdaq, the pullback affected a major source of recent market enthusiasm. Yahoo Finance reported that chip and data-center stocks were among the biggest early laggards as investors weighed what the Democratic sweep could mean for AI infrastructure spending and regulation.
The Nasdaq’s reported 5% decline put it on track to close in correction territory, but the source did not say that a correction had been confirmed. A correction is commonly defined as a fall of at least 10% from a recent closing high; the supplied report gives no index-level calculation establishing that threshold had been met. For investors, that distinction matters: the day’s sharp drop was clear, while the broader market status depended on the index’s closing level and its prior peak.
The rise in volatility and oil prices added to the unsettled session. Higher crude prices can affect fuel costs and inflation expectations, while a sudden volatility spike signals larger expected market swings. Those moves do not, on their own, establish what will happen to prices next.
Products Worth Considering
Samsung Odyssey G4 25-inch FHD Gaming Monitor
Samsung 34-Inch Odyssey G5 Ultra-Wide Curved Gaming Monitor
HP Sprocket Portable 2×3 Instant Photo Printer, Lilac, with ZINK Paper Bundle
As an affiliate, we earn on qualifying purchases.
Election Gains Met New Concerns
Wednesday’s rally followed the midterm election, in which Democrats swept both chambers of Congress, according to the source report. The initial market reaction reflected relief that election uncertainty had eased. By Thursday, investors were still trying to assess how a change in congressional control might affect the economy, regulation and the perceived winners and losers across industries.
Technology shares faced questions about the outlook for AI-related investment and policy. The report also noted that Qualcomm shares fell after its quarterly results. Not every company was down: AppLovin rose 23% in premarket trading after reporting quarterly revenue and earnings above analyst expectations and issuing stronger-than-expected fourth-quarter guidance. That contrast shows the day was not a uniform sell-off across all companies.
Separate economic and corporate news was also on investors’ calendars. Challenger, Gray & Christmas reported that announced layoff plans in October fell to their lowest level since 2023, as companies turned toward retaining existing employees. The source described that data as a lead-in to Friday’s employment report. Duke Energy, Airbnb and Lumentum were among the companies scheduled to report earnings.
Closing Levels and Causes Still Developing
The supplied report gives late-session losses, not final closing levels, so the Dow, S&P 500 and Nasdaq’s confirmed end-of-day results are not established here. It also describes the Nasdaq as being on track to close in correction territory rather than confirming that it did. The exact contribution of election-related policy concerns, AI investment questions and other trading factors to Thursday’s decline is not quantified.
Oil-market uncertainty also remained unresolved. The report linked the rise in crude to uncertainty about a possible U.S.-Iran deal, but it provided no confirmation that negotiations had produced an agreement or that a change in policy was imminent. The employment report due Friday could provide new economic information, but its results and market effects were not yet known.
Investors Await Close and Jobs Data
The immediate next reference point is the market close, which will establish whether the late-session losses held and whether the Nasdaq finished in correction territory. Investors were also preparing for the U.S. employment report scheduled for Friday, following the October layoff-plans data from Challenger, Gray & Christmas.
Markets will continue to respond to developments affecting chip and AI companies, the new Congress’s policy direction and oil-market news. Those are potential areas of focus, not a forecast of how shares or crude prices will move. The source report did not provide final closing prices or a confirmed policy outcome on Iran.
Key Questions
Why did U.S. stocks fall on Thursday?
Yahoo Finance attributed the sharp drop mainly to selling in AI, technology and semiconductor shares, which erased Wednesday’s post-election rally. The report also said investors were weighing the implications of Democrats’ election victory for markets and the economy; it did not quantify each factor’s contribution.
How much did the major indexes fall?
In Yahoo Finance’s late-session update, the Dow was down 2.2%, or more than 1,200 points, the S&P 500 was down 3.3% and the Nasdaq was down 5%. These were late-session figures in the supplied report, not confirmed closing results.
Did the Nasdaq enter a correction?
Not on the information provided. Yahoo Finance said the Nasdaq was on track to close in correction territory, but did not confirm its closing level or state that a correction had occurred.
What happened to chip stocks?
The PHLX Semiconductor Index fell 11%, according to the report. Earlier market updates said Nvidia, Micron and AMD were down more than 6%, 12% and 13%, respectively; those figures were session snapshots.
What market events were investors watching next?
The next scheduled economic data point identified in the report was the Friday employment report. Investors were also watching company earnings, oil prices and possible changes in policy under the newly elected Congress.
Source: finance.yahoo.com
