One-Day Rally, Gone: Chips Sink 12% and the Nasdaq Enters Correction
The S&P 500 fell 4.36% on Thursday, its worst day since April 2025 (AP). The Dow lost 1,833 points, more than erasing Wednesday's 1,569-point rally. The Nasdaq Composite closed in correction territory as the AI trade unraveled.
The rout
The S&P 500 closed at 7,353.73 (-4.36%), the Nasdaq-100 at 26,629.81 (-6.36%), and the Russell 2000 at 2,729.89 (-4.45%). The Dow closed at 51,523.06 (-3.44%). Index levels and changes are the 4:40 PM ET package's Robinhood marks, with the Dow sourced to Yahoo Finance/Bloomberg. AP independently reported the S&P's worst day since April 2025, the Dow's 1,833-point loss, and the Composite's roughly 5.5% decline. The Composite finished 11.9% below its all-time high, according to AP.
The Philadelphia Semiconductor Index closed at 9,011.14 (-12.25%) (Yahoo Finance/Bloomberg, as cited in the source package). The VIX jumped +69.66% to 28.18 (Robinhood). SPY fell 4.38%, QQQ -6.38% and DIA -3.50% (Robinhood closing marks).
Investors were reassessing the AI buildout and what a Democratic sweep of Congress could mean for it. Yahoo Finance reported a broad exit from this year's AI winners. Qualcomm's weak outlook added to the pressure after its Wednesday report. That is the market's reported explanation, not proof of one cause for every sale.
The damage
Every Mag 7 stock fell. Tesla finished -10.82% at $343.51 and Nvidia -9.26% at $181.59. Meta fell 3.86%, Microsoft -3.62%, Alphabet -2.19%, Amazon -2.07% and Apple -1.48% (Robinhood closing marks).
SanDisk fell 22.27%, AMD -17.65% and Micron -17.21%. Qualcomm lost 9.41% and Arm -13.12%. AppLovin went the other way: +31.14% to $356.36, after its earnings beat and upbeat outlook. The price changes are Robinhood marks; Proactive's market report independently confirms the AppLovin earnings story.
What to watch
- Tonight's earnings split: Airbnb earned $3.16 a share vs $2.85 expected. Cloudflare's adjusted EPS was $0.38 vs $0.34, and Atlassian's adjusted EPS $1.65 vs $1.43. DraftKings reported an adjusted loss of $0.53 a share vs a $0.36 loss expected. Atlassian still fell about 16% after hours as investors focused on the cloud subscription outlook (Investing.com, 4:48 PM ET report). Extended-hours moves are not closing prices.
- Friday, November 6, 8:30 AM ET: the October jobs report. Reuters-polled economists expect 65,000 additional payrolls and an unchanged 4.2% unemployment rate.
- The next test: whether the Nasdaq Composite can recover toward its correction threshold, or the semiconductor selloff deepens.
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MarketsOnDeck - Thursday, November 5, 2026, after the close. Not investment advice.
Sources: AP market close, Yahoo Finance market close, Proactive market report, Investing.com after-hours earnings, Reuters jobs preview. Stock and ETF changes and charts use Robinhood closing marks from the 4:40 PM ET source package. These can differ slightly from consolidated official closes; no chart labels them official. SOX and Dow are attributed separately above.