Nasdaq Enters Correction After Tech Selloff

U.S. technology shares fell sharply on November 5, pushing the Nasdaq Composite more than 10% below its October 6 peak and into correction territory as investors weighed election results, potential data-center restrictions and company earnings. The index dropped as much as 5.7% intraday; the reported figures describe different points in the session, rather than a single agreed closing decline. The selloff followed a rally on November 4, when the Nasdaq rose 1.44% after the midterm elections. Selling in semiconductor companies and businesses tied to AI data-center construction had already emerged beneath that broader advance, then spread across technology shares the next day. The S&P 500 and Dow Jones Industrial Average also fell, with reports describing their steepest daily losses since April 2025. Investors focused in part on the election of Democrat Gina Hinojosa as Texas governor. Hinojosa campaigned on a temporary halt to new data-center projects and removing certain tax incentives for developers. Texas has attracted major data-center investment, and traders considered whether policy changes could slow construction and affect suppliers of chips and infrastructure. The...