Market
Nasdaq 100 falls 6.4% and loses a record $2.3 trillion as the chip index drops 12% in an AI sell-off
On Nov. 5 the Nasdaq 100 lost about $2.3T, a record in dollars per Bloomberg, and chips fell 12%. Press cites AI-rule fears; unproven.
On Thursday, November 5, 2026, US stocks fell sharply as AI and chip shares were sold. The Nasdaq 100 dropped about 6.3% to 6.4% and lost roughly $2.3 trillion in market value; Bloomberg, as relayed by a secondary site, calls it the largest one-day dollar loss on record for the index. The Philadelphia Semiconductor Index fell about 12%. Reasons given by the press are interpretations, not established facts.
The essentials
- Nasdaq 100: down about 6.3%–6.4%, roughly $2.3 trillion of value erased; its worst percentage day since March 2020.
- Chips: the Philadelphia Semiconductor Index fell about 12.2%–12.3%, its worst day since March 2020 and about 16% down over the week, according to one relay.
- Wider market: the S&P 500 fell about 4.4% (roughly $2.8 trillion to $2.9 trillion), its worst day since April 2025; the Nasdaq Composite fell about 5.5% and entered correction territory.
- Stated causes: outlets point to Democratic gains in the midterm elections raising fears of tighter AI rules and slower data-center construction, plus investors locking in 2026 gains. Those are market narratives, not proven causes.
- Spillover: Asian markets fell sharply on Friday (see our separate article).
What exactly fell?
NBC News reports the Nasdaq 100 lost $2.3 trillion and the S&P 500 $2.8 trillion, both worst since April 2025 in index terms. The semiconductor index had its worst day since March 2020, and a memory-chip ETF dropped almost 18%. Tesla was reported down about 10% and Bitcoin about 5%. Nvidia, Micron and AMD fell sharply; one relay says Nvidia lost over $440 billion of value, a figure we could not check.
Why did it happen?
NBC ties the move to election results favoring candidates critical of AI, adding to existing doubts about how durable the AI investment boom is. Other coverage cites fear of regulatory scrutiny and delays to data centers. These accounts come from journalists and analysts interpreting a one-day move; the market did not publish a reason, and part of the decline reportedly began in October.
Where do the sources disagree?
The headline loss is $2.3 trillion in most sources; one site says $2.5 trillion, apparently for the wider Nasdaq. A relay gave a different closing figure for the chip index, in conflict with the many reports of about 12%; we used the majority figure. Percentages differ slightly by rounding (6.3% to 6.4%).
What is not established?
- Whether the midterm results, AI-regulation fears or profit-taking were the main driver.
- Whether Thursday's move is the start of a lasting downturn or a one-day shock.
- Exact dollar losses, which vary by source and index definition.
- How markets behave after Friday: early Nasdaq-100 futures were reported slightly higher, a thin signal.
Summary table
| Point | What is stated as of November 6, 2026 | Source |
|---|---|---|
| Nasdaq 100 | -6.3% to -6.4%, about $2.3 trillion | NBC News, Yahoo Finance |
| Record | Largest dollar loss on record, per Bloomberg | Cleus (relay) |
| Chip index | About -12% | NBC News, Yahoo Finance |
| S&P 500 | About -4.4%, about $2.8 trillion | NBC News |
| Nasdaq Composite | About -5.5%, correction | Yahoo Finance |
| Stated cause | Midterm results and AI-regulation fears (interpretation) | NBC News, Nikkei Asia |
FAQ
Is this the biggest Nasdaq 100 drop ever?
Only in dollar terms, per Bloomberg as relayed; in percent it is the worst since March 2020.
Did the election cause the fall?
Media link them, but causality is not proven.
Is it a crash or a correction?
The Nasdaq Composite entered correction territory, a drop of 10% or more from its high; a bear market is 20% or more.
Method and limits
Sources checked on November 6, 2026. We read search extracts of Yahoo Finance, NBC News and several relays; we did not read Bloomberg or exchange data directly. This is not investment advice.
Sources
- NBC News: Stocks plunge as election outcome and AI worries crush tech shares (verified 2026-11-06)
- Yahoo Finance: Stock market today, Dow plunges, Nasdaq enters correction in AI trade meltdown (verified 2026-11-06)
- Futu News: U.S. stocks close, Nasdaq 100 posts its biggest drop in six years (verified 2026-11-06)
- Cleus: Stock market crash Nov 2026, why tech stocks are down (verified 2026-11-06)
- Time News: Nikkei 225 enters bear market after 20% plunge (verified 2026-11-06)
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