Nasdaq Composite falls 5.52% to 24,315 in AI-led rout
Published on 11/05/2026 at 22:47 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWSNasdaq slides into correction territory
- The Nasdaq Composite closed 5.52% lower at 24,315.00 on November 5, 2026.
- The sell-off followed concerns about AI spending, data-center expansion and possible policy changes after the US midterm elections.
- The index finished more than 10% below its October 6 record close.
The Nasdaq Composite ended Thursday, November 5, 2026, at 24,315.00 points, down 1,421.52 points, or 5.52%, from the previous session's close of 25,736.51. The decline left the technology-heavy index more than 10% below its record closing high of 27,599.89 reached on October 6.
The US trading session had ended before the configured evening reporting window in Berlin. The closing level and daily change were reported by Kiplinger, while Nasdaq's index overview shows the preceding November 4 close at 25,736.51.
AI spending concerns drive sell-off
The retreat was concentrated in technology and semiconductor shares. Investors questioned whether the large capital commitments planned by hyperscalers and other companies for artificial-intelligence infrastructure will generate returns quickly enough. Data-center construction and the demand for chips came under particular scrutiny as market participants reassessed the growth assumptions embedded in AI-linked valuations.
According to Reuters, the decline followed the Democrats' sweep of both chambers of Congress in the US midterm elections. The resulting prospect of closer scrutiny of further AI infrastructure expansion added to existing doubts about spending levels and profitability. Reuters also noted that the index had already lost more than 2.5 trillion US dollars in market value during October.
Correction threshold confirmed at the close
A decline of at least 10% from a recent closing high is commonly used as the definition of a market correction. Thursday's close therefore confirmed that status for the Nasdaq Composite. Kiplinger described the session as the index's largest one-day percentage decline since the April 2025 tariff-related sell-off. The move reversed most of Wednesday's post-election advance, when the index had gained 1.4%.
The breadth and speed of the decline underline the sensitivity of the index to changes in expectations for AI investment, financing costs and technology regulation. For investors, the closing level marks a material change in the index's short-term trend, but it does not by itself establish whether the correction has ended or how individual constituents will perform.
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