Key facts
- The Philadelphia chip index fell 12% on Thursday, its second-biggest fall on record.
- SanDisk fell 22%, while Micron Technology, AMD and Marvell each fell 17%.
- Nvidia fell 9% and the S&P 500 tech sector fell 7.3%.
- All 11 S&P 500 sectors fell on Thursday.
- The Nasdaq was down as much as 14% from its all-time high, reached a month earlier.
- Truist's Keith Lerner said: "We are now seeing something of a buyers' strike in tech."
US stocks fell on Thursday, November 5, 2026, led by a selloff in technology and AI-related shares, as investors reassessed the implications for the AI data center buildout of the Democrats' sweeping wins in the midterm elections. The Nasdaq fell 5.5% and the S&P 500 fell 4.4%, while the Dow fell 3.4%. All 11 S&P 500 sectors fell, with technology down 7.3%.
The Philadelphia chip index fell 12%, its second-biggest fall on record. SanDisk fell 22%, and Micron Technology, AMD and Marvell each fell 17%. Nvidia fell 9%. The Nasdaq was down as much as 14% from its all-time high, reached only a month earlier, and about $2 trillion was wiped off its market cap on Thursday.
Keith Lerner of Truist said: "We are now seeing something of a buyers' strike in tech. The rubber band could get stretched further to the downside." Lerner is described in the report as being in the bullish camp.
Interest rate traders pushed back the expected timing of the Federal Reserve's next rate hike to March, and were pricing only 40 basis points of tightening in total, the report said. Adding September's 25 basis point hike, that would make a full hiking cycle of 65 basis points, or two quarter-point moves.
In other markets, the US dollar was little changed, the Australian dollar was the biggest G10 decliner at 1%, and the Chilean peso and Korean won each fell 1%. Bitcoin fell 6% to $75,000. US yields fell 12 basis points at the short end and the curve steepened sharply. Oil ended 3% to 4% higher and gold rose 1%.