Dow Jones Stock Markets Today: Dow Sheds 1,833 Points as AI Rout Sends Nasdaq Crashing 5.5%

Wall Street gave back in a single afternoon everything it had gained the day before. The Dow Jones Industrial Average dropped 1,833 points, or 3.4%, on Thursday, November 5, while the Nasdaq Composite fell 5.5% and slid into a correction. The S&P 500 lost 4.4%. It was the worst session for all three indexes since the tariff shock of April 2025.

The trigger was a sharp sell-off in artificial intelligence and chip stocks, driven by a fear that came out of the US midterm elections: that a Democratic Congress could slow the data centre boom that has powered this market for two years.

Here is what happened, why it happened, and what investors are watching as Friday’s trading approaches.

Dow Jones Stock Markets Today: The Numbers at a Glance

The speed of the reversal is what stands out. On Wednesday, stocks rallied hard on relief that the midterms had produced no policy surprises. The Dow jumped nearly 1,570 points, its best day since April 2025. Thursday erased all of it, and then some.

The Nasdaq now sits more than 10% below its record close of October 6, which is the standard definition of a correction. The Nasdaq-100 had its worst day since March 2020. The Russell 2000 index of smaller companies fell more than 4%, and all 11 sectors of the S&P 500 finished lower.

A Day That Started Green and Ended Near the Lows

Thursday did not open like a disaster. The Dow began the session about 334 points higher, still riding Wednesday’s mood, while Nasdaq futures were only slightly negative. Treasury yields ticked up after a stronger-than-expected economic reading, which added a little pressure on growth stocks.

Then the selling started and kept building. By mid-morning the Nasdaq was down about 5%. Buyers tried twice to stage a rebound, once late morning and again in the afternoon, and both attempts fizzled. Stocks closed close to their lows, and the selling carried on in after-hours futures.

Keith Lerner, chief investment officer at Truist Wealth, described what was changing: the tech sell-off had grown big enough that it was now dragging down the rest of the market, rather than being contained to a handful of names.

Why Did the Dow Fall? The Midterm Fear Behind the AI Sell-Off

Democrats won control of Congress on Tuesday, and they also won races in states where opposition to new data centres has been growing. According to Reuters, that set off worry that tougher regulation could slow the AI infrastructure build-out that has helped lift stocks to record highs this year.

A few specific details sharpened the concern:

• Texas: Governor-elect Gina Hinojosa, who defeated Republican incumbent Greg Abbott, has proposed a moratorium on new data centre construction until stronger safeguards are in place. Texas is one of the biggest destinations for data centre investment in the country.
• Ballot measures: According to the tracker Data Centers on the Ballot, 39 measures to restrict AI-related development passed this week, with only one, in North Dakota, going the other way.
• Capacity estimates: UBS analysts estimated that roughly 30% of the US data centre capacity expected to be added in 2028 could be at risk if construction pauses spread. Investor Brad Gerstner said at least 10 to 15 gigawatts of planned capacity might not come online in 2027.
• Company news: Microsoft moved to tighten oversight of data centre projects tied to some of its smaller cloud partners, citing delays and rising costs. Qualcomm, separately, missed Wall Street’s estimates for smartphone chip sales and fell about 9.5%.

Analysts were careful to say the picture is not entirely about politics. Several noted that the AI trade had been wobbling for weeks over valuations and cash flow, and that the election gave nervous investors a reason to act. Nvidia, for example, closed at a seven-month low and was already more than 25% below its October 6 high. Capital Economics economist Joe Maher called the immediate risk a slowdown in construction pace, not an end to the AI boom, and other strategists made the same point: AI leadership remains a priority for both parties, especially in the race with China.

The Biggest Losers (and the Few Winners)

The damage was concentrated in chipmakers, data centre builders, and the newer cloud firms that rent out AI computing power.

There were a couple of bright spots. AppLovin jumped close to 30% on strong earnings, and Airbnb gained about 6% after its results.

How Big Was the Wipeout?

Several numbers help show the scale of Thursday’s losses:

Nvidia is a Dow component, and its slide is one reason the blue-chip index took such a heavy hit even though it holds far fewer pure technology stocks than the Nasdaq. The Dow gave back its entire post-election gain, though it still has a way to go before it would be in correction territory itself.

The Rest of the World Felt It Too

The sell-off crossed oceans before Friday’s New York session even began. Asian technology stocks tumbled, and Japan’s Nikkei 225 slipped into a bear market. European tech shares also fell on Thursday as investors reassessed the sector after the US election results.

Friday’s Jobs Report Is the Next Big Test

All eyes now turn to the October jobs report, due before the opening bell on Friday. Economists expect roughly 60,000 jobs added, up from a weak 29,000 in September, with the unemployment rate holding at 4.2%. The data matters because it feeds directly into expectations for the Federal Reserve’s December rate decision.

Early Friday, futures pointed in different directions. Nasdaq-100 futures were up around 0.3% to 1%, a small bounce after Thursday’s drop, while Dow futures were down about 0.9% and S&P 500 futures were roughly flat to slightly lower. Oil was higher too, with Brent crude near $100 a barrel.

Some market watchers said the real signal would be Friday’s close. A late reversal on heavy volume could suggest the selling is running out of steam. Another slow fade, with the VIX drifting back below 20, would suggest it is not.

Nigerians who buy US stocks through local investment apps, or who hold funds with big exposure to American tech, will see the effect in their portfolios right away, since the biggest drops were in the very companies those funds tend to hold most. Anyone with a long time horizon may want to remember that a correction is a 10% decline from a peak, not a collapse, and that markets often swing wildly in the days after a shock like this.

Higher oil prices, with Brent near $100, are a separate story, but one that matters to Nigeria’s public finances. That is worth watching alongside the market news.

This article is for information only and is not investment advice.

Dow Jones and Nasdaq Sell-Off: Quick Answers

How much did the Dow Jones fall on November 5, 2026?

The Dow fell 1,833.06 points, or 3.44%, to close at 51,523.06.

Is the Nasdaq in a correction?

Yes. The Nasdaq Composite closed at 24,315.00, more than 10% below its record close of October 6, which meets the technical definition of a correction.

Why did the stock market drop on Thursday?

Investors dumped AI and chip stocks over fears that a Democratic Congress, together with new state-level data centre restrictions, could slow the AI infrastructure build-out. Weak guidance from Qualcomm and existing valuation worries added to the pressure.

Is this a stock market crash?

It was the worst day since April 2025 and a big shock, but the Dow and S&P 500 are not in correction territory. Analysts are divided on whether this is the start of something deeper or an overdue reset.