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The Nasdaq Composite fell 5.52% on Nov. 5, 2026, its largest one-day decline since April 2025; the Nasdaq-100 fell 6.36%. Reuters estimated that the Nasdaq-100 lost $2.5 trillion in market value as investors considered whether election results could slow or raise the cost of AI data center construction. The policy effects remain uncertain, and no new federal law has passed.
The Nasdaq Composite fell 5.52% on Thursday, Nov. 5, its biggest one-day decline since April 2025, while the Nasdaq-100 dropped 6.36%. Reuters estimated that the Nasdaq-100 lost about $2.5 trillion in market value as investors weighed whether election results could bring tighter oversight, fewer incentives or higher costs for planned AI data center projects.
Nasdaq’s published index data put the Composite’s close at 24,315.00, down 1,421.51 points. The Nasdaq-100 closed at 26,629.81, down 1,807.36 points. The PHLX Semiconductor index fell 12.25% to 9,011.14. Reuters reported that Nvidia shares dropped 9%, AMD fell 17%, and several data center operators lost more than 14%.
The $2.5 trillion figure refers to the Nasdaq-100, which tracks the exchange’s 100 largest non-financial companies; it is not a calculation of losses across every Nasdaq-listed stock. Reuters calculated the market value decline. The Composite ended 11.9% below its Oct. 6 record, putting it in correction territory, commonly defined as a fall of at least 10% from a recent peak.
The selling followed a mixed session on Wednesday, Nov. 4. The Composite rose 1.44%, even as Reuters said data center operators and power companies fell and Amazon and Microsoft each gained about 6% during the session. On Thursday, Amazon and Alphabet fell 2.2% and Microsoft dropped 3.6%, Reuters reported. The VIX, a measure of expected market volatility, recorded its largest increase since December 2024, according to the same report.
Nasdaq’s sharp selloff puts AI data centers in focus
Investors weighed whether election results could bring tougher oversight or higher costs for AI data center projects. No new federal law has passed, and policy effects remain uncertain.
Where selling was concentrated
The session’s losses were steepest in semiconductor stocks and data center operators.
Why data center policy matters
Large projects depend on permits, electricity, water, land and capital.
Project approvals
Tighter oversight or pauses could affect planned construction timelines.
Project economics
Reduced tax incentives could change the costs and returns developers expect.
Power and water
Requirements to cover more resource costs could affect project economics.
Market concern versus confirmed change
The selloff reflects uncertainty about what might happen; it does not confirm new rules or project cancellations.
| Question | What the content says |
|---|---|
| New federal law? | ✗ No |
| Confirmed project cancellations? | ✗ None reported |
| Planned 2028 capacity at risk? | About 30%, per a UBS estimate cited in the report |
| Policy effects established? | ~ Uncertain |
What businesses and readers should watch
Concrete decisions and company updates can show whether campaign positions affect projects.
Watch Congress, federal agencies and incoming governors for actions on oversight, permits and incentives.
Company disclosures and project announcements may clarify timelines, financing and capacity plans.
The one-day decline describes a trading session; it does not determine how long the selloff will last or what an investment will do.
Investors Reprice Data Center Plans
The decline shows how AI infrastructure expectations have become a market concern beyond the chip companies that supply the equipment. Data centers require large amounts of electricity, water, land and capital. Changes to permits, power connections, tax incentives or project costs could affect the pace and economics of planned construction, with potential consequences for developers, utilities and technology companies.
That link is a market interpretation, not a confirmed policy outcome. Investors were responding to the possibility that new officeholders could change the conditions for projects. The sharp falls in semiconductor shares and data center operators show where selling was concentrated on Thursday; they do not establish that construction will slow or that projected earnings will fall.
For savers and businesses with exposure to technology stocks, a broad index decline can affect portfolios and financing conditions. The figures describe one trading session, however, and do not by themselves establish how long the selloff will last or what any particular investment will do.
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How Election Results Entered the Market
U.S. midterm elections were held on Nov. 3, two days before the selloff. The source report says Democrats won control of Congress and flipped several governorships, including in states expected to host substantial AI data center development. Investors then considered how a shift in political control might affect approvals and incentives for those projects.
That question had already appeared in trading on Wednesday. One strategist told Reuters that existing data centers might become more valuable if fewer new facilities were built. The Composite’s gain that day, followed by Thursday’s steep drop, shows that the market response was not a simple, continuous decline after election night.
The Thursday move was the Composite’s largest daily fall since April 4, 2025, when it dropped 5.82% during the tariff shock. The source’s comparison of Nasdaq closing data, reaching back to March 2025, places the Nov. 5 decline below that April drop in magnitude. It also reports that the index had fallen 5.3% in October and had recorded four other daily declines of more than 500 points since mid-October.
“Existing data centers could become more valuable if fewer new ones are built.”
— A strategist quoted by Reuters
Policy Changes Remain Speculative
The election results have not, by themselves, changed federal rules for data center construction. The source reports that no new federal law has passed and that President Donald Trump retains veto power. Several analysts cited in the source expect political gridlock rather than sweeping changes.
Possible additional congressional oversight, reduced tax incentives, requirements for developers to cover more power and water costs, and pauses promised by incoming governors are all potential developments described by analysts or political actors. Their scope and timing are not established in the material. It is also unclear which specific projects, if any, would be delayed or canceled.
A UBS estimate cited in the source says about 30% of planned 2028 capacity additions could be at risk. That is a forecast, not a government decision or a confirmed count of canceled capacity. The source does not provide a project-by-project breakdown or enough detail to determine how the estimate was calculated.
Watch Permits, Power and Incentives
Investors will be watching for concrete decisions from Congress, federal agencies and incoming governors on project oversight, permits, tax treatment and the cost of electricity and water. Those actions would help show whether campaign positions turn into rules that affect data center construction.
Company disclosures and project announcements may also clarify whether developers are revising timelines, financing or capacity plans. Until such evidence appears, the market’s policy concerns remain a source of uncertainty rather than a settled explanation of future construction levels. The next trading sessions will show whether Thursday’s fall broadens, stabilizes or reverses; they cannot alone resolve the underlying policy questions.
Key Questions
How far did the Nasdaq fall on Nov. 5, 2026?
The Nasdaq Composite fell 5.52%, closing at 24,315.00, down 1,421.51 points. The Nasdaq-100 fell 6.36%, closing at 26,629.81.
What does the $2.5 trillion figure refer to?
Reuters estimated that the Nasdaq-100 lost about $2.5 trillion in market value. The figure concerns that index’s 100 largest non-financial companies, not every stock listed on Nasdaq.
Why did investors sell technology stocks?
The source attributes the market concern to possible changes in oversight, incentives and costs for AI data center projects following the midterm elections. These are investor concerns and analyst scenarios; the source does not establish that policy changes have taken effect.
Is the Nasdaq Composite in a correction?
Yes. At Thursday’s close, the Composite was 11.9% below its Oct. 6 record. A correction is commonly defined as a decline of at least 10% from a recent peak.
Have data center projects been canceled?
The source does not report confirmed cancellations. A UBS estimate cited in the report says about 30% of planned 2028 capacity additions could be at risk, but that remains a forecast rather than a decision.
Source: Thorsten Meyer AI
