Business · Markets · 2 hrs ago
Nasdaq loses $2.5 trillion in record one-day drop
The Nasdaq Composite fell 5.52% on Thursday, its biggest one-day drop on record.
The fall erased about $2.5 trillion in market value from companies on the index, and left it 11.9% below its October 6 level, putting it in correction territory.
The sell-off hit major technology companies, with Tesla down 10.8% and Nvidia down 9.3%.
Investors were concerned about the AI trade and possible data-center rules after Democrats won control of both chambers of Congress in the November 3 midterm elections.
The Nasdaq 100 fell 6.36%, while the semiconductor index dropped 12.2%, showing how sharply chip and technology-related shares were affected.
The volatility index, a measure often called Wall Street’s fear gauge, jumped 69.5% to 28.15.
Barclays estimated that volatility-control funds could sell about $135 billion in US stock futures over the next 24 to 48 hours, adding to pressure on markets.
Nasdaq-listed companies lost about $2.5 trillion in market value on November 5, the largest one-day decline in the index’s history.
The Nasdaq Composite fell 5.52% to close at 24,315.00.
The sell-off was linked to anxiety about AI-related investments and possible tighter data-center regulation.
All seven members of the Magnificent Seven fell, while the Philadelphia Semiconductor Index dropped 12.2%.
The Cboe Volatility Index rose 69.5% to close at 28.15.
- Who
- Companies listed on the Nasdaq, including major technology and semiconductor firms.
- What
- Nasdaq-listed companies lost about $2.5 trillion in market value, a record one-day decline.
- When
- November 5, 2026, in US trading.
- Where
- The US stock market, including the Nasdaq.
- Why
- Anxiety about AI-related investments and possible tighter data-center regulation after Democrats won both chambers in the November 3 midterm elections.
This story does not have two clearly opposing sides.
Democrats won both chambers in the US midterm elections, raising concern about possible tighter data-center regulation.
The Nasdaq Composite fell 5.52%, and its component companies lost about $2.5 trillion in market value.
- Nasdaq-listed companies’ lost market value
- About $2.5 trillion
- Nasdaq Composite close
- 24,315.00, down 5.52%
- Nasdaq 100 close
- 26,629.81, down 6.36%
- Magnificent Seven
- All seven stocks fell; their combined market value dropped by about $1 trillion at one point
- Philadelphia Semiconductor Index
- Down 12.2%
- Cboe Volatility Index close
- 28.15, up 69.5%
What people are saying
It feels like the rug is being pulled out from under us.
With all this uncertainty ahead, the market remains extremely vulnerable.