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U.S. stocks sharply reversed Wednesday’s post-election rally on Thursday, led by a broad sell-off in semiconductor and AI-related shares. The Dow fell 2.2%, the S&P 500 lost 3.3%, and the Nasdaq dropped 5%; the semiconductor index slid 11%. The figures reflect the market update reported at 5 p.m. GMT+1, and the Nasdaq was described as on track to close in correction territory.
U.S. stocks fell sharply Thursday, wiping out gains from Wednesday’s post-election rally as investors sold technology shares, particularly semiconductor and AI-related stocks. At the time of 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%.
The sell-off was concentrated in chipmakers. The PHLX Semiconductor Index fell 11%, while Nvidia, Micron and other semiconductor stocks declined. Earlier in the session, Yahoo Finance reported losses of more than 6% for Nvidia, 12% for Micron and 13% for AMD as the Nasdaq fell about 4%. Those earlier figures were intraday snapshots; the report later put the Nasdaq’s decline at 5%.
Yahoo Finance said the late-session losses followed an initially mixed start to Thursday. In an earlier update, the Dow was up 0.6%, while the S&P 500 edged down 0.3% and the Nasdaq slipped 1%. Chip and data-center shares were already among the weakest areas as investors weighed the possible effects of the Democrats’ election victory on AI infrastructure spending and regulation.
Oil prices moved higher amid uncertainty about whether President Donald Trump would pursue an agreement with Iran to end the war in the Middle East. Brent crude traded around $97 a barrel and U.S. benchmark West Texas Intermediate near $90 a barrel, according to the report. The reversal also extended beyond equities: Bitcoin fell more than 5% and dropped below $76,000, according to Yahoo Finance’s live coverage.
Chip Losses Drive the Reversal
The scale of the semiconductor decline matters because it pulled down major indexes and erased the broad gains investors had made the previous day. The 11% drop in the semiconductor index points to concentrated pressure in a sector that has been central to enthusiasm about AI-related investment. The report does not establish a single cause for the sell-off; it describes investors reassessing the election’s potential effects alongside renewed pressure on technology shares.
The move also shows how quickly market sentiment shifted. Wednesday’s rally followed the Democrats’ sweeping victory in the midterm elections, while Thursday’s losses left investors sorting through the possible consequences for companies and the wider economy. For people tracking retirement accounts, investment portfolios or market risk, the session’s sharp reversal is a reminder that a rally tied to political developments can be followed by substantial losses, particularly in heavily traded sectors.
Oil’s rise adds a separate concern for markets and consumers. The source linked higher prices to uncertainty around a possible Iran deal, but did not report a confirmed change in policy or a completed agreement. The price levels are therefore a snapshot of trading, not a statement about what oil will cost next.
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Election Gains Give Way
Wednesday’s session brought a post-election rally after Democrats won both chambers of Congress, according to Yahoo Finance’s coverage. That result removed some immediate election uncertainty but left investors weighing possible policy effects, including implications for technology, AI infrastructure and cryptocurrency legislation. The Thursday report described this as an ongoing effort to identify potential winners and losers under a changed Congress, rather than a settled market assessment.
Some company-specific developments moved against the broader direction. AppLovin shares surged 23% in premarket trading after the company reported third-quarter revenue of $2.18 billion, above the $2.07 billion estimate cited in the report, and forecast fourth-quarter revenue above analysts’ expectations. Wendy’s, by contrast, said it rejected a $1.4 billion offer from Nelson Peltz’s Trian Fund Management, saying the proposal undervalued the company. These items underline that the index declines did not mean every stock fell.
Investors were also looking ahead to economic and company news. A report from Challenger, Gray & Christmas said planned layoffs in October fell to their lowest level since 2023, while the U.S. employment report was due Friday. Duke Energy, Airbnb and Lumentum were among the companies scheduled to report earnings, according to the source.
The Sell-Off’s Drivers Remain Unsettled
The report identifies chip and AI stock selling as the immediate focus of the market decline, but it does not establish one definitive trigger for the reversal. Investors were still processing the election result and its potential effects on spending, regulation and the economy. The relative contribution of those concerns, company-specific trading and broader market positioning remains unclear from the available information.
The Nasdaq was described as on track to close in correction territory; that wording is a projection, not confirmation that it had finished the session there. The supplied report does not provide final closing levels. It also does not establish that the election outcome caused the technology losses, or that the declines would continue beyond Thursday.
Oil-market uncertainty was also unresolved. The report cited questions about whether Trump would pursue a deal with Iran, but did not confirm negotiations, a policy decision or the timing of any possible agreement. The effects of the election on cryptocurrency legislation, including the industry-backed Clarity Act, were likewise described as questions rather than confirmed outcomes.
Friday Jobs Data in Focus
The next scheduled economic milestone identified in the report was Friday’s employment report. Investors were also due to hear from companies reporting earnings, including Duke Energy, Airbnb and Lumentum. Those releases could add information about company performance and the labor market, but the source does not provide forecasts for how they might affect trading.
Market participants will also be watching whether the sell-off continues, whether semiconductor shares stabilize and how investors interpret the Democrats’ congressional victory for technology policy and spending. The report offers no confirmed forecast for the next session; Thursday’s closing figures and any subsequent policy developments remain key unresolved points.
Key Questions
How much did the major U.S. stock indexes fall?
In Yahoo Finance’s update at 5 p.m. GMT+1 on November 5, 2026, the Dow was down 2.2%, the S&P 500 had fallen 3.3%, and the Nasdaq was down 5%. The report does not provide final closing levels.
Which stocks or sectors were hit hardest?
Semiconductor shares were the main focus of the decline. The PHLX Semiconductor Index fell 11%; earlier intraday coverage cited declines of more than 6% for Nvidia, 12% for Micron and 13% for AMD.
Why did stocks reverse Wednesday’s rally?
The report linked Thursday’s losses to selling in AI and chip stocks and investors’ continued assessment of the election’s possible effects on markets and the economy. It did not confirm one definitive cause for the reversal.
Did the Nasdaq officially close in correction territory?
That was not confirmed in the supplied report. It said the Nasdaq was on track to close in correction territory, but did not include final closing figures.
What market information was expected next?
The report pointed to Friday’s employment report and scheduled earnings from companies including Duke Energy, Airbnb and Lumentum. It did not say how those releases would affect markets.
Source: finance.yahoo.com
