AI-linked sell-off leaves Nasdaq in correction as Treasury yields fall

The November 5 sell-off left the Nasdaq Composite in correction territory, with losses extending from chipmakers to companies supporting AI data-centre construction. JC Post and KTIV reported that expensive borrowing and the possibility of construction pauses after nationwide Democratic midterm victories weighed on shares. The index fell 5.5%, its biggest daily decline since April 2025, according to Reuters and The Times of India.¹³⁵⁶

Losses across technology shares

The Times of India reported that the Nasdaq 100 lost $2.5 trillion in market value during the session. That figure concerns the Nasdaq 100, rather than the Nasdaq Composite, whose percentage decline was reported by both outlets. Reuters said the Composite had fallen nearly 12% from its October 6 record close, exceeding the 10% decline that defines a correction.¹³

Chipmakers were among the companies affected. JC Post and KTIV reported that Nvidia fell 9.3% and Advanced Micro Devices lost 17.3%; Nvidia was the largest drag on the S&P 500. Webindia123 reported that Broadcom lost 10% and Oracle fell almost 7%.¹⁴⁵⁶

Losses also reached other businesses supporting data-centre expansion. CoreWeave fell 9.8% and GE Vernova lost 7.5%, according to JC Post and KTIV. The outlets reported concerns that slower construction would reduce demand for chips, electricity and related products and services.⁵⁶

The selling extended beyond technology. Webindia123 reported that the S&P 500 declined 4.36% to 7,353.73 and the Dow Jones Industrial Average lost 1,833.06 points, or 3.44%, to finish at 51,523.06.⁴

Construction and investment concerns

The Times of India reported that incoming Democratic governors, including in Texas, had sought an immediate pause in data-centre development. The outlet noted that the facilities consume substantial electricity and water, and said election results had heightened investor concerns about political opposition to further construction.³

According to UBS analysts cited by The Times of India, potential construction pauses could put around 30% of anticipated US data-centre capacity additions in 2028 at risk. That estimate describes exposure to possible pauses, not an announced reduction in capacity. Reuters also reported that projects involving billions of dollars could be delayed.¹³

The concerns also encompass investment returns. The Times of India said investors were questioning whether spending on AI infrastructure would produce sufficient returns. Reuters reported that higher interest rates and tighter financial conditions had already constrained smaller companies' ability to raise funds.¹³

JC Post and KTIV also linked the selling to concerns that expensive borrowing could slow further data-centre construction. They reported that critics regarded AI shares as overpriced and in a bubble; that assessment is not an established valuation finding.⁵⁶

Truist Advisory Services investment chief Keith Lerner warned that the week's volatility should not be viewed as an indicator of how technology stocks would fare with Democrats controlling Congress. Webindia123 quoted him describing the movements as “more of a knee-jerk reaction than a clear indication of how technology stocks could perform under Democratic control of Congress”.⁴

Treasury yields fall as companies report earnings

Treasury yields continued falling as stocks retreated. JC Post and KTIV said the 10-year yield was at 4.84%, six basis points below its late-Wednesday level of 4.90%.⁵⁶

Separately, AppLovin reported revenue and profit above analysts’ expectations, and its board approved a share-buyback programme. Tapestry, the company behind Coach and Kate Spade, exceeded profit expectations and raised its fiscal-year revenue and earnings forecasts, the outlets reported.⁵⁶