Business · Markets · 1 hr ago
Nasdaq falls 5.5% as investors worry AI investment may slow
The Nasdaq fell 5.5% on Thursday, its worst day since April 2025, amid a broad sell-off in technology shares.
It has now dropped more than 12% from its recent peak, entering correction territory, and the fall erased $2.5 trillion in market value in one day.
Investors are concerned that data center construction and AI investment could slow, after years of growth driven by demand for artificial intelligence.
Chip and memory companies were among the hardest hit, with SanDisk down more than 22% and AMD and Micron each falling more than 17%.
The technology sell-off also pulled the S&P 500 down 4.35%, while European markets gave up earlier gains and South Korea’s Kospi fell 5.2%.
The sharp moves show how much market confidence depends on continued AI spending, and investors are weighing whether that growth can continue at its recent pace.
The Nasdaq fell 5.5% on Thursday as investors sold technology shares amid concerns about artificial intelligence investment and regulation.
The sell-off wiped out about $2.5 trillion in Nasdaq-listed company value, according to Handelsblatt and Cinco Días.
The S&P 500 fell about 4.3%, while the Dow Jones dropped about 3.4%.
Democrats’ strong performance in the US midterm elections raised concerns that data centre projects and AI infrastructure expansion could face tighter rules or slowdowns.
Investors also questioned when major technology companies’ large AI infrastructure spending will generate revenue and profits.
- Who
- Investors and technology companies were affected by the sell-off.
- What
- The Nasdaq fell 5.5%, as technology shares dropped amid concerns over AI investment and regulation.
- When
- Thursday, November 5, 2026.
- Where
- US stock markets, including Wall Street.
- Why
- Investors worried that data centre investment and AI infrastructure expansion could slow, and questioned when AI spending would pay off.
This story does not have two clearly opposing sides.
US midterm elections were held, with Democrats making strong gains.
US stocks rose sharply after the election, including a 1,500-point gain for the Dow Jones.
US technology shares plunged as investors reacted to concerns over AI regulation and spending.
- Nasdaq
- Fell 5.5%
- Nasdaq-listed company value
- About $2.5 trillion lost in one day
- S&P 500
- Fell about 4.3%
- Dow Jones
- Fell about 3.4%
- VIX
- Rose about 69% to 70% according to the reports
9 sources
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What people are saying
Las acciones tecnológicas necesitan que continúe el auge económico, como un tiburón que tiene que seguir nadando para sobrevivir