NEW YORK, November 6, 2026 (Punjab Infoline): The US stock market suffered a sharp sell-off on Thursday, November 5, as Wall Street's three major indexes recorded their steepest single-day declines in roughly 19 months. Technology and semiconductor stocks led the losses, with artificial intelligence (AI) companies facing particularly heavy selling pressure.

The market downturn wiped trillions of dollars from the valuations of major US technology companies. According to market reports, companies in the Nasdaq 100 collectively lost an estimated $2.3 trillion to $2.5 trillion in market capitalization during the session.

US Stock Market Crash: How Much Did the Dow, Nasdaq and S&P 500 Fall?

The S&P 500 fell 4.4%, or approximately 335 points, to close at 7,353.73. It marked the benchmark index's worst single-day performance since April 2025, when President Donald Trump's "Liberation Day" tariff announcement triggered a major market sell-off.

The technology-heavy Nasdaq Composite dropped 5.5%, or around 1,422 points, to finish at 24,315. The decline pushed the index approximately 11.9% below its October 6 record high, placing it in technical correction territory.

A stock market correction is generally defined as a decline of at least 10% from a recent peak.

The Dow Jones Industrial Average plunged approximately 1,833 points, or 3.4%, to close at 51,523. All 30 companies in the blue-chip index ended the trading session lower.

Meanwhile, the Nasdaq 100 sank approximately 6.4%, while the Russell 2000 index, which tracks smaller US companies, declined around 4.4%.

AI and Semiconductor Stocks Lead Wall Street Losses

Technology and semiconductor companies were among the hardest hit during Thursday's market decline.

All 11 sectors of the S&P 500 finished in negative territory, with the technology sector falling more than 7%.

The Philadelphia Semiconductor Index plunged approximately 12%, marking its worst single-day performance since the market turmoil triggered by the COVID-19 pandemic in March 2020.

Nvidia, one of the world's leading AI chipmakers, saw its shares fall approximately 9%.

Advanced Micro Devices (AMD) and Micron Technology suffered even steeper losses, with both stocks declining around 17%.

Several other semiconductor and AI-related companies also recorded double-digit percentage declines as investors reduced exposure to technology stocks.

According to market estimates, the combined market capitalization of the "Magnificent Seven" technology companies fell by more than $1 trillion during the sell-off.

Post-Midterm Election Rally Erased in One Trading Session

The sharp decline came just one day after US stocks rallied following the Democratic Party's sweeping gains in the November 2026 midterm congressional elections.

On Wednesday, November 4, the Dow Jones gained approximately 1,569 points, or nearly 3%, in one of its strongest sessions in recent months.

The S&P 500 rose 1.6%, while the Nasdaq Composite advanced 1.4%.

However, Thursday's widespread selling erased those gains as investors shifted their attention from the election results to concerns about the outlook for artificial intelligence infrastructure, technology valuations and potential regulatory changes.

Why Did the US Stock Market Crash on November 5?

Market reports identified several factors contributing to the sharp decline, including concerns over AI infrastructure investment, potential regulatory restrictions and heavy selling in technology stocks.

Following the Democratic Party's midterm election gains, investors began assessing the possibility of stronger local opposition and additional regulatory scrutiny affecting large AI data center projects.

Some communities have raised concerns about the expansion of energy-intensive data centers, creating uncertainty around future infrastructure development.

These concerns weighed on companies involved in AI chips, computing infrastructure and related technologies.

Profit-taking also contributed to the downturn after significant gains in several AI-related stocks.

Institutional investors and hedge funds reportedly reduced exposure to crowded technology trades, adding to selling pressure across major indexes.

Meanwhile, the Cboe Volatility Index (VIX), commonly known as Wall Street's fear gauge, surged as market uncertainty increased.

Nasdaq Enters Correction Territory as Technology Valuations Face Pressure

The Nasdaq Composite's decline into correction territory highlighted growing investor concerns about elevated valuations among major technology companies.

AI-related stocks have attracted substantial investment as businesses expand spending on data centers, advanced processors and computing infrastructure.

However, questions about the pace of future earnings growth, infrastructure spending and potential government regulation have increased uncertainty surrounding the sector.

The sharp decline in semiconductor shares also demonstrated how quickly investor sentiment can shift when expectations for high-growth companies change.

Will the US Stock Market Continue Falling?

Following Thursday's sell-off, US stock index futures indicated continued pressure ahead of Friday's trading session.

Investors are expected to closely monitor developments involving AI infrastructure policy, Federal Reserve interest rates, corporate earnings and broader economic conditions.

Analysts generally consider corporate profitability, interest rates and economic growth to be important long-term drivers of stock market performance.

Although Thursday's decline was among the most significant market sell-offs of 2026, a single trading session does not necessarily indicate the beginning of a prolonged bear market.

Nevertheless, the November 5 downturn has renewed debate over the valuations of major US technology companies and the sustainability of the AI investment boom.