The Nasdaq falls 5.52% into a correction as AI and chip stocks have their worst day since April 2025 after the Democratic midterm sweep, CNBC reports

US stocks had their worst day since April 2025 on Thursday 5 November, as investors sold AI and chip shares after the Democrats' midterm sweep. The Nasdaq Composite fell 5.52% to close at 24,315.00 and entered a correction, more than 10% below last month's record, CNBC reported. The S&P 500 fell 4.36% to 7,353.73, and the Dow Jones Industrial Average lost 1,833.06 points, or 3.44%, to 51,523.06, CNBC reported. Yahoo Finance gives similar moves, rounded.

Chip stocks fell about 12%, Yahoo Finance and Fox Business report. Yahoo Finance says the PHLX Semiconductor index had its worst day since March 2020. Nvidia fell 9%, Yahoo Finance and CNBC report; Yahoo Finance calls it Nvidia's steepest fall since the DeepSeek sell-off of January 2025. AMD fell sharply too, but the outlets' figures for it differ (15% in their 5 November coverage, about 17% on 6 November), so none is given here.

CNBC tied the sell-off to fears that a Democratic sweep of both chambers of Congress could slow data-centre construction and bring more regulation of the AI build-out. Yahoo Finance says the fall erased Wednesday's post-election rally. It came two days after local voters sided against data centres in nearly every ballot measure on the subject, which the Switchboard reported on 5 November.

Stocks partly recovered in trading on Friday 6 November, CNBC and Yahoo Finance reported, with chipmakers among the gainers. Friday's closing figures were not visible at run time, so none are given here. The index figures come from CNBC's market coverage; the exchanges' own pages were not read.

• Reported The Nasdaq Composite fell 5.52% to 24,315.00, the S&P 500 4.36% to 7,353.73 and the Dow 1,833.06 points, or 3.44%, to 51,523.06, CNBC reported. CNBC
• Reported All three major averages had their worst day since April 2025, CNBC reported; Yahoo Finance calls it the S&P 500's worst day since the April 2025 tariff crash. CNBC; Yahoo Finance
• Reported Chip stocks fell about 12%, Yahoo Finance and Fox Business report, and Nvidia 9%, Yahoo Finance reports. Yahoo Finance; Fox Business
• Reported CNBC tied the fall to fears that a Democratic sweep of both chambers could slow data-centre construction. CNBC