Wall Street had its worst day since April 2025 on Thursday 5 November 2026. Investors dumped AI and chip stocks two days after Democrats won sweeping victories in the US midterm elections. The fall more than erased Wednesday's post-election rally, which had been the best day in three months. The Nasdaq Composite closed in correction territory, more than 10% below its 6 October record. On Friday the selling spread to Asia, and Japan's Nikkei 225 is −6.29% on our MT5 feed. The S&P 500 (US500) stands at 7,352.08, −4.25% in 24 hours. The next big test is the US October jobs report, scheduled for 16:30 Mecca time today.
What happened
The sell-off came in three steps: an election, a relief rally, then a sharp reversal led by the companies that had gained most from the artificial intelligence boom. Times are Mecca time.
Americans vote in the midterm elections. Democrats win sweeping victories in Congress.
Stocks rally strongly in their best day in three months, helped by falling oil prices. President Trump claims credit for the gains.
AI and chip stocks are sold hard. Nvidia is by far the heaviest weight on the S&P 500. Data-centre operators and power suppliers such as GE Vernova and Constellation Energy also fall. Tesla and SpaceX drop for a second day.
Wall Street closes. The Nasdaq Composite has its worst day since April 2025 and ends in correction territory. US stock futures keep falling after the close.
President Trump blames voters. He writes that "the Stock Market crashed today because the Dumocrats had a big Tuesday" and that voters "only have yourselves to blame".
Tokyo opens sharply lower. The Nikkei 225 falls to its lowest level since May and is on course for a bear market. South Korea's Kospi also tumbles.
Why AI stocks crashed after the election
Investors fear that the new Congress, and Democratic state governments, could slow or pause the construction of AI data centres. Rising electricity prices turned data centres into a campaign issue, and some Democrats called for restrictions on new projects. Voters across both parties say they are wary of AI and of higher power bills.
Fewer data centres would mean fewer purchases of AI chips, power equipment and electricity. That is why the selling hit chipmakers, cloud and data-centre companies and power suppliers at the same time. AI stocks had already been swinging for months on worries about high borrowing costs and a possible bubble.
The largest AI companies are now among the biggest stocks in US indices. When they fall together, the S&P 500 and the Nasdaq 100 fall hard, and Asian markets with large chip and tech weights, such as Japan and South Korea, follow.
Stocks on our feed
On our MT5 feed the S&P 500 (US500) is at 7,352.08, −4.25% over 24 hours and −3.42% over five days. The Nasdaq 100 (USTEC) fell −4.49% to 26,829.30, and the Dow Jones (DJ30) moved −4.90% to 51,005.75.
Among single stocks, Nvidia fell −9.07% to $181.85 and Tesla fell −10.85% to $343.22. Intel moved −10.43%, Meta (Facebook) −3.79% and Microsoft −3.67%. In Asia, the Nikkei 225 is at 57,220.40, −6.29% over 24 hours.
Nasdaq 100, Nikkei 225, Nvidia and Tesla side by side over the same five days:
Bonds, oil, gold and crypto
Investors moved into US government bonds. The 10-year Treasury yield fell to 4.84% on Thursday from 4.90% late on Wednesday. It was 4.95% on election night and above 5.30% last month. Lower yields came even though fewer Americans applied for unemployment benefits last week.
Oil went the other way. Brent (UKOIL) rose +5.50% to $103.13, as uncertainty about the war with Iran returned after Wednesday's drop. Gold (XAUUSD) moved −1.85% to $4,045.63. Bitcoin (BTCUSD) moved −6.21% to $75,441.56, trading with risky assets rather than as a safe haven.
In currencies, USD/JPY is at 157.78 and USD/MXN moved +1.06% to 18.76. In Brazil, the Ibovespa closed lower on Thursday and the dollar rose to 5.48 reais.
Scenarios
- Further selling: if the jobs report disappoints or more AI stocks break lower, markets may extend the fall, and the Nasdaq 100 and Nikkei could lead again.
- Stabilisation: if the jobs data is steady and Asian markets close off their lows, indices may settle into a wide range while investors wait for clearer policy signals from the new Congress.
- Rebound: if buyers see the drop as overdone, markets may bounce, as they often do after very sharp one-day falls. Lower bond yields could support that move.
What to watch next
- US October jobs report: scheduled for Friday 6 November at 16:30 Mecca time. Wall Street opens at 17:30 Mecca time.
- The Tokyo and Seoul closes on Friday: a recovery from the lows would ease pressure on US futures.
- Bond yields: a further fall in the 10-year yield would show investors are still seeking safety.
- Statements from Democratic leaders on data centres, AI rules and energy prices.
- Oil and the Iran war: higher oil would add to inflation worries at a fragile moment for stocks.
Trading indices and stocks at TNFX
The S&P 500 (US500), Nasdaq 100 (USTEC), Dow Jones (DJ30), Nikkei 225 (JP225) and stocks such as Nvidia and Tesla are available as CFDs on MT4 and MT5, long or short. In markets this volatile, spreads can widen and prices can gap, so use stop-losses and size positions for the risk.
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Common questions
Why did the stock market crash on 5 November 2026?
Investors sold AI and chip stocks on fears that Democrats, after winning sweeping victories in the 3 November midterm elections, could slow or pause the construction of AI data centres. It was Wall Street's worst day since April 2025.
Is the Nasdaq in a correction?
Yes. The Nasdaq Composite closed on 5 November more than 10% below its 6 October record close, which is the usual definition of a correction.
Why did Nvidia and Tesla stock fall?
Nvidia fell with other AI chipmakers on fears of fewer data centres. Tesla and SpaceX fell for a second day on worries that the new political balance could slow Elon Musk's business plans. On our feed Nvidia moved −9.07% and Tesla −10.85% over 24 hours.
Why is the Nikkei falling today?
Japan's market followed Wall Street's AI sell-off. On Friday 6 November the Nikkei 225 fell to its lowest level since May and is on course for a bear market. On our feed it is at 57,220.40 (−6.29%).
What did Trump say about the stock market?
On Thursday night, US time, President Trump blamed voters, writing that the market crashed because Democrats had a big Tuesday and that voters only have themselves to blame. A day earlier he had claimed credit for the rally.
What is the S&P 500 price now?
On the TNFX MT5 feed the S&P 500 (US500) is at 7,352.08, −4.25% over 24 hours and −3.42% over five days.
What could move stocks next?
The US October jobs report at 16:30 Mecca time on Friday 6 November, the Wall Street open at 17:30 Mecca time, bond yields, and any statements on data-centre rules from the new Congress.