US stocks tumble as Nasdaq has its worst day in 18 months on bets of an AI slowdown after midterm results

Summary

US stocks fell sharply on Thursday 5 November 2026, with the Nasdaq, Dow and S&P 500 all lower and chipmakers, AI data centre companies and major technology stocks leading the losses. The Guardian reported that the Nasdaq composite slumped 5.5% for its worst day in 18 months, tipping it into correction territory more than 10% below its recent record high, with more than $2tn wiped off its value and its biggest one-day fall since the tariff announcements of April 2025. It attributed the sell-off to investors betting on an AI slowdown, as signs grew that the industry could face tougher regulation after the Democrats' midterm election win. The Financial Times reported that Wall Street shed $3.2tn in a day of chaotic trading, with the tech-heavy Nasdaq 100 tumbling 6.4%.

Timeline

1. Hindustan Times

   5 Nov 2026, 16:55 UTCSource ↗

   Reports that US stocks tumbled as the Nasdaq, Dow and S&P 500 fell, with chip stocks, AI data centre shares and major technology stocks plunging.

2. The Guardian

   5 Nov 2026, 21:23 UTCSource ↗

   Reports that the Nasdaq composite had its worst day in 18 months, slumping 5.5% and entering correction territory, with more than $2tn wiped off its value as investors bet on an AI slowdown amid tougher regulation signs after the midterm results.

3. Financial Times

   5 Nov 2026, 22:41 UTCSource ↗

   Reports that Wall Street shed $3.2tn as the tech-heavy Nasdaq plunged, with the Nasdaq 100 tumbling 6.4% in a day of chaotic trading.