U.S. stocks plunged on Thursday as investors reconsidered AI shares following Democrats' sweeping midterm wins. The S&P 500 fell 4.3%, the Nasdaq dropped 5.5% into correction territory, and the Dow lost more than 1,800 points.
U.S. stock markets plunged on Thursday as investors reconsidered AI shares following the Democrats' sweeping wins in the midterm elections. The selloff erased gains from Wednesday's post-election rally, which followed Democrats' sweeping victory in Tuesday's midterm elections.
Dow loses more than 1,800 points
On Thursday, Nov. 5, 2026, the Dow Jones Industrial Average fell 3.4%, or more than 1,800 points, as AI and chip stocks sold off. The decline wiped out all of the prior day's rally.
Nasdaq falls into correction territory
The S&P 500 finished down 4.3%, while the Nasdaq fell 5.5%. That put the Nasdaq into correction territory, meaning it was down more than 10% from a previous peak last month. The Nasdaq Composite closed in correction territory after its 5.5% drop.
