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TL;DR
The Nasdaq Composite fell 5.52% on Nov. 5, its steepest one-day drop since April 2025, while the Nasdaq-100 lost 6.36%. Investors focused on the possibility that election results could lead to tighter oversight, fewer incentives or added costs for AI data centers, but no new federal law has passed and major policy changes remain uncertain.
The Nasdaq Composite fell 5.52% on Thursday, Nov. 5, its steepest single-session decline in 19 months, as investors weighed whether election results could complicate the build-out of AI data centers. The Nasdaq-100 fell 6.36%, and Reuters estimated the drop erased about $2.5 trillion in market value from the 100-company index; the figure does not cover every stock listed on Nasdaq.
Nasdaq’s published closing data put the Composite at 24,315.00, down 1,421.51 points. Its prior larger one-day decline was a 5.82% fall on April 4, 2025, during the market reaction to tariff announcements. The Nasdaq-100 closed at 26,629.81, down 1,807.36 points. The PHLX Semiconductor index dropped 12.25%, with Reuters reporting declines of 9% for Nvidia and 17% for AMD. Several data-center operators also fell by more than 14%, Reuters reported.
The losses followed a mixed reaction a day earlier. On Nov. 4, the Composite gained 1.44%, even as data-center operators and power companies declined; Amazon and Microsoft rose about 6% during that session, according to Reuters. On Thursday, Amazon and Alphabet fell 2.2% and Microsoft fell 3.6%, Reuters reported. The CBOE Volatility Index, often called Wall Street’s fear gauge, recorded its largest increase since December 2024, the news agency said.
The Composite closed 11.9% below its Oct. 6 record, putting it in correction territory under the common definition of a decline of at least 10% from a recent peak. The selloff also extended a volatile stretch: the source’s count of Nasdaq data identifies five sessions since mid-October in which the index fell by more than 500 points. That is a point-count measure, not a claim that each decline had the same percentage or cause.
Infographic 01 · The day in numbers
The Nasdaq's worst day in 19 months
Chips and data center builders led the fall. The dollar figure in the headlines belongs to the Nasdaq-100, the 100 largest non-financial companies on the exchange.
Nasdaq Composite on Thursday, 5 November 2026: down 1,421.51 points to 24,315.00. The biggest one-day fall since 4 April 2025, 19 months earlier.
The five worst Composite days since March 2025
Daily change, closing values
Sources: Nasdaq Global Indexes (COMP, NDX, SOX closing data, retrieved 6 Nov 2026) · Reuters, 5 Nov 2026 (via The Straits Times). History checked back to 25 Mar 2025. Market value is Reuters’ calculation. Not investment advice.
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Election Risks for Data Centers
The market reaction reflects concern that political decisions could affect the cost, pace and location of projects built to serve AI computing demand. Data centers depend on large amounts of electricity, grid connections, water and land, and on permits and tax arrangements. Changes to those conditions could alter expected spending and returns for developers, utilities and the technology companies that rely on the facilities.
Reuters and The National reported that investors and analysts are watching the new Congress and incoming governors for signs of increased scrutiny, reduced tax incentives or requirements that developers cover more infrastructure costs. Those are potential policy outcomes, not enacted changes. The difference matters: Thursday’s price moves show investors repricing risk, but do not establish that construction will stop or that AI demand has weakened.
For businesses and households, the question is whether policy and local opposition could slow new capacity or raise its cost. If projects are delayed, technology companies could face constraints on expansion; if developers absorb higher power and water expenses, project economics may change. The supplied material does not establish that any of those effects has occurred. The market’s immediate signal is that investors see political and infrastructure uncertainty as another risk alongside the scale of technology companies’ AI spending.
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From Election Results to Permits
The election results cited in the source include Democrats taking control of both chambers of Congress and winning several governorships. Reuters reported that analysts expect more congressional hearings and investigations into the AI build-out. The National reported Democratic gubernatorial gains in Texas, Georgia, Ohio, Iowa and Nevada, and said those states account for 37% of planned U.S. data-center capacity based on its analysis of Cleanview project data. That share is an outlet-specific estimate, not a count of facilities already operating.
State and local officials can influence development through permitting, utility regulation, grid connections and tax incentives. The National reported that the incoming Texas governor had promised a moratorium on new data-center construction and greater community input, while incoming governors in Georgia and Ohio had pledged pauses on large projects. The source also says that unofficial local results in ten states showed 46 of 47 measures opposing data centers, through proposals such as bans, size limits or pauses. Those results are described as unofficial and do not by themselves establish final policy.
The drop was not simply a direct response to a new law: no new federal law governing the projects had passed as of the source’s account. President Donald Trump retains veto power, and some analysts expect political gridlock rather than sweeping federal changes. The market’s concerns therefore center on what officials might do and how local decisions could affect individual projects.
““deepest one-day drop since ‘Liberation Day’ in April 2025””
— Reuters, describing Thursday’s session
Policy Plans Are Not Yet Law
The election outcome is confirmed in the source, but the eventual policy response is not. It is not clear which proposals will become law, how quickly incoming officials could act, or whether federal and state efforts would materially delay projects. The source notes that President Trump retains veto power and that analysts expect possible gridlock.
A UBS estimate cited in the source says about 30% of planned data-center capacity additions for 2028 could be at risk. That is an analyst estimate, not a government decision or a confirmed cancellation of projects. The supplied material does not specify the assumptions behind that estimate. It also does not establish that the selloff was caused solely by the elections; market declines can reflect multiple expectations and risks.
Local ballot results were described as unofficial, and the full legal status and implementation of those measures are not given. The source does not provide a complete account of the affected projects, nor does it show whether companies will change their investment plans. Those details remain developing.
Watch Hearings, Permits and Costs
Investors are likely to monitor the new Congress as it takes up committee oversight, alongside incoming governors’ actions on permits, utilities and tax incentives. Local governments and regulators will also matter because decisions on power connections, rates and project approvals can affect individual developments even without a broad federal law.
The next concrete signs will be formal proposals, enacted measures, regulator decisions and company disclosures about construction schedules or spending. Until those emerge, estimates of threatened capacity and expectations of a slower build-out should be treated as forecasts, not confirmed outcomes. The market’s next moves will show how investors respond as those policy details become clearer.
Key Questions
How much did the Nasdaq fall on Nov. 5?
The Nasdaq Composite fell 5.52%, closing at 24,315.00. The Nasdaq-100 fell 6.36% to 26,629.81.
What does the $2.5 trillion figure refer to?
Reuters estimated that about $2.5 trillion in market value was erased from the Nasdaq-100, which tracks 100 large non-financial companies listed on Nasdaq. It is not a measure of losses across every Nasdaq-listed stock.
Why did election results affect AI-related stocks?
Investors considered whether new congressional oversight and state or local decisions could change data-center permits, tax incentives, electricity costs or project timelines. Those are concerns about possible future policy, not proof that projects have already been halted.
Have new restrictions on data centers been enacted?
The source says no new federal law had passed. It reports political pledges and unofficial local ballot results, but does not establish that all proposed pauses or restrictions are in force.
What does it mean that the Nasdaq is in correction territory?
The Composite closed 11.9% below its Oct. 6 record. A correction is commonly defined as a fall of 10% or more from a recent peak; the term describes the size of the decline, not its cause or what markets will do next.
Source: ThorstenMeyerAI.com
