Wall Street Loses $3 Trillion as Nasdaq Plunges 5.5%

06 Nov 2026, 00:07 by Bill Giannopoulos · Greek City Times

Key Takeaways

Wall Street experienced its worst trading session since April 2025, with the Nasdaq dropping 5.52% and the S&P 500 losing approximately $3 trillion in value.
Technology and AI stocks were significantly impacted, as concerns grew over regulatory scrutiny following the recent midterm elections.
Elon Musk’s companies, including Tesla and SpaceX, also saw declines of around 9.5% and 6.7%, respectively, amid reassessed political and business environments.
The sell-off affected all sectors of the S&P 500, prompting investors to seek safer assets like US government bonds.
Investors now await the upcoming US jobs report, which could impact interest rate expectations and provide insights into the economy’s health amid ongoing uncertainty.

Wall Street suffered its worst trading session since April 2025 on Thursday, as the Nasdaq plunged 5.52%, the Dow Jones shed 1,833 points and approximately $3 trillion was wiped from the value of S&P 500 companies.

The dramatic sell-off reversed the previous day’s post-election rally, with technology and artificial intelligence stocks bearing the brunt of investor anxiety over the Democrats’ sweeping victories in the US midterm elections.

The Nasdaq Composite plunged 1,421.52 points to close at 24,315, entering correction territory after falling more than 10% from its October record.

The Dow Jones Industrial Average dropped 1,833.06 points, or 3.44%, to 51,523.06, while the S&P 500 lost 4.36% to finish at 7,353.73.

The S&P 500 recorded its biggest daily percentage decline since the April 2025 tariff turmoil triggered by US President Donald Trump’s trade policies.

The sell-off also erased the gains recorded on Wednesday, when the Dow surged more than 1,500 points following the election results.

AI stocks and semiconductor companies hammered

Technology stocks led Thursday’s losses as investors reassessed the outlook for artificial intelligence investment and the construction of data centres across the United States.

Democratic victories in the midterm elections have raised expectations of increased scrutiny of major technology companies and potential restrictions on data centre developments.

Investors are concerned that stronger regulation, local opposition and possible construction moratoriums could slow the expansion of the infrastructure underpinning the AI industry.

The Philadelphia Semiconductor Index plunged more than 12%, recording one of its steepest daily declines.

Nvidia fell approximately 9.3%, while Advanced Micro Devices plunged around 17%. SanDisk lost more than 22%, and Qualcomm also suffered heavy losses following disappointing sales guidance.

Other companies exposed to the artificial intelligence infrastructure boom, including CoreWeave, Nebius Group, Applied Digital and Hut 8, also came under significant pressure.

The Nasdaq’s losses erased approximately $2.5 trillion in market value in a single session, according to market reporting.

Tesla and Musk-linked companies fall

Elon Musk’s companies also faced selling pressure following the election results.

Tesla shares tumbled approximately 9.5%, while SpaceX fell around 6.7%, extending their recent declines.

Musk had invested heavily in Republican candidates and political efforts, including campaigns in Texas, where both companies have significant business interests.

The election outcome has prompted investors to reassess the political and regulatory environment facing major technology and infrastructure companies.

Fear spreads across Wall Street

The sell-off extended well beyond the technology sector.

All 11 major sectors of the S&P 500 finished lower, with industrial, consumer discretionary, financial and materials stocks also experiencing significant declines.

Caterpillar fell 6.4%, while JPMorgan Chase lost approximately 4.2%, adding to the pressure on the Dow.

Investors moved towards US government bonds in search of safer assets, pushing the benchmark 10-year Treasury yield to its lowest level since September 9.

The sharp market decline reflected growing uncertainty over the future of AI investment, corporate valuations and the political environment in Washington.

However, the losses did not erase the market’s gains for the year. At Thursday’s close, the S&P 500 remained up approximately 7.4% in 2026, the Dow was up 7.2% and the Nasdaq was still higher by 4.6%.

US jobs report becomes next market test

Investors are now turning their attention to Friday’s October employment report, which could influence expectations for Federal Reserve interest rate policy.

Economists were forecasting approximately 65,000 new jobs, with the unemployment rate expected to remain at 4.2%.

The figures will provide another indication of the health of the US economy as markets contend with uncertainty over inflation, interest rates and the future of artificial intelligence investment.

Thursday’s rout has placed the technology sector under renewed pressure, with investors questioning whether the enormous spending on AI infrastructure will deliver the returns previously built into company valuations.

Source: Reuters, Associated Press, The Wall Street Journal and CBS News.

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