U.S. Stocks Fall as AI-Related Shares Lead Selloff

U.S. stocks fell sharply on Thursday, November 5, as technology and artificial-intelligence-related shares led a broad selloff that erased gains from the previous day’s post-election rally. Investors were weighing whether Democrats’ midterm victories could affect AI regulation and data-center development, though the election’s role in the decline remains a market interpretation rather than an established cause. The Nasdaq Composite closed down 5.52% at 24,315, while the S&P 500 fell 4.36% to 7,353.73. The Dow Jones Industrial Average lost 1,833.06 points, or 3.44%, to finish at 51,523. All three benchmarks recorded their steepest daily declines since April 2025. The Nasdaq ended in correction territory, more than 10% below its October 6 record closing high. Technology, semiconductor and data-center-related shares were among the hardest hit. The Philadelphia Semiconductor Index dropped more than 12%, and Nvidia fell about 9%. Data-center operators IREN, Nebius Group and Applied Digital also posted substantial losses. Selling spread beyond technology, with declines reported across other sectors and the Russell 2000 falling 4.45% into correction territory. The selloff followed a...