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US stocks sold off sharply Thursday, erasing gains from the previous day’s post-election rally. The Dow fell 2.2%, the S&P 500 dropped 3.3%, and the Nasdaq lost 5% as semiconductor shares plunged; oil prices rose amid uncertainty over the Middle East conflict.
US stocks fell sharply Thursday, reversing the previous day’s post-election rally as investors sold technology and semiconductor shares. By Yahoo Finance’s 5 p.m. GMT+1 update, the Dow Jones Industrial Average was down 2.2%, the S&P 500 had fallen 3.3% and the Nasdaq Composite had dropped 5%, with the technology-heavy index nearing correction territory.
The losses intensified after a mixed start to the session. Yahoo Finance’s live updates reported that the Dow had initially risen 0.6%, while the S&P 500 edged down 0.3% and the Nasdaq fell 1%. Later updates described a widening sell-off in chip and technology shares. By the end-of-day update, the Philadelphia Semiconductor Index was down 11%. Nvidia, Micron and other semiconductor companies were among the stocks under pressure.
The report said an earlier stage of the decline had erased about $2 trillion in market value from stocks as indexes surrendered Wednesday’s gains. In that update, Nvidia was down more than 6%, Micron more than 12% and AMD more than 13%. Those figures refer to the earlier live-market snapshot; the report did not provide closing share-price changes for each company.
Investors were still assessing the market consequences of Tuesday’s Democratic victories in both chambers of Congress, according to the report. It said the election result had removed some uncertainty while prompting questions about possible winners and losers under a changed Congress, including the outlook for AI infrastructure spending and regulation. The report also noted that Qualcomm shares fell after its quarterly results, while AppLovin moved in the opposite direction: its shares rose in premarket trading after the company reported results and guidance above analyst estimates.
Chip Selling Reversed the Rally
The reversal shows how quickly the market’s post-election gains gave way when investors reassessed technology stocks. The 11% decline in the semiconductor index was especially severe and helped pull down the broader indexes. Because chipmakers and other technology companies are influential parts of major benchmarks, losses in those shares can have an outsized effect on index performance.
For investors, Thursday’s drop also means that the election result did not settle questions about policy or spending. The report identified uncertainty about AI infrastructure investment and regulation as part of the market’s continuing reassessment. It did not establish that any particular policy change caused the sell-off; the broad reversal occurred alongside a pronounced decline in chip stocks.
Other market signals pointed to competing concerns. Oil rose as traders weighed whether President Donald Trump would pursue a deal with Iran to end the Middle East war. Brent crude traded around $97 a barrel, while US benchmark West Texas Intermediate was near $90, according to the report. The moves matter to readers because energy prices, employment data and corporate results may all shape expectations for the economy and markets in coming sessions.
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Election Gains Lasted One Session
Wednesday’s rally followed the midterm election results, in which Democrats won both chambers of Congress, according to Yahoo Finance. The report said investors had initially welcomed the removal of election uncertainty, but continued to consider what a change in congressional control could mean for companies and the economy. The source did not provide a detailed breakdown of the election’s policy effects or identify a single cause for Thursday’s reversal.
The session also unfolded amid other economic and corporate news. Challenger, Gray & Christmas reported that October layoff plans were at their lowest level since 2023, as companies focused on retaining current employees. The report described that data as setting the stage for Friday’s key employment report. Duke Energy, Airbnb and Lumentum were among the companies scheduled to report results, while AppLovin’s better-than-expected third-quarter performance and outlook offered a contrast to the wider technology sell-off.
Crypto assets also retreated with risk-sensitive markets. Bitcoin fell more than 5% and dropped below $76,000, reversing Wednesday’s rebound above $80,000, according to a Yahoo Finance live update. That report also cited a $6.3 billion Binance hack the previous week and new questions about crypto legislation as factors weighing on confidence and expectations. These developments were reported alongside the stock sell-off, but the source did not establish that they caused the declines in equities.
Policy Effects Remain Unsettled
The available report does not identify a single trigger for Thursday’s losses or establish how much of the decline reflected election-related policy concerns versus selling in technology and chip stocks. Its index and stock figures come from updates at different points during the session, so earlier intraday readings should not be confused with the later figures.
It also remains unclear whether the Nasdaq would close in correction territory: the source said the index was on track to close in a correction, not that it had definitively done so. The report’s 5 p.m. GMT+1 update gives the index’s decline but does not state the final closing level or define the comparison period used for the correction threshold.
The report did not give a confirmed resolution to the questions it raised about AI spending, regulation, or a possible Iran deal. Nor did it state Friday’s employment-report results. The market’s response to those developments remains uncertain.
Employment Data Comes Friday
Investors will have Friday’s key employment report to consider after the October layoff-plans figure from Challenger, Gray & Christmas. The source did not provide a forecast for the report or its eventual results. Company earnings from firms including Duke Energy, Airbnb and Lumentum were also on the calendar, offering additional information about business conditions and corporate outlooks.
Market participants will continue to monitor chip and technology shares, oil prices and developments related to the new congressional makeup. Whether Thursday’s decline continues, or the indexes recover some of their losses, was not clear from the available update. The next confirmed readings will depend on subsequent trading and the release of new economic and company data.
Key Questions
How much did the major US indexes fall?
In Yahoo Finance’s 5 p.m. GMT+1 update for Thursday, November 5, the Dow fell 2.2%, the S&P 500 fell 3.3% and the Nasdaq fell 5%. Earlier intraday updates reported smaller losses.
What drove the Thursday sell-off?
The report highlighted a sharp decline in AI and semiconductor stocks as the main feature of the sell-off. It also said investors were weighing the possible market and economic effects of Democrats’ election victories. The source did not identify one confirmed cause for the full market decline.
Did the Nasdaq enter a correction?
Not confirmed in the supplied report. It said the Nasdaq was on track to close in correction territory, but did not confirm that it finished the session there or provide the closing level and comparison period.
Why did oil prices rise?
Yahoo Finance reported that oil rose amid uncertainty over whether President Trump would pursue a deal with Iran to end the Middle East war. Brent crude traded around $97 a barrel and US WTI around $90 in the update.
What market news is expected next?
The report pointed to Friday’s employment report and scheduled company earnings, including results from Duke Energy, Airbnb and Lumentum. Their outcomes and the market response were not yet available in the supplied material.
Source: finance.yahoo.com
