US Stock Market Crash: Wall Street Suffers Worst Day in Months

Benchmark indices on Wall Street suffered a severe sell-off on Thursday, November 5, wiping out the entire post-midterm election rally as investors panicked and dumped assets across the board. From old economy firms to data centers and artificial intelligence-linked equities, no sector escaped the downturn in what marked the steepest decline for major indices since April 2025. Market participants reacted strongly to fears of potential regulatory clampdowns on AI expansion and data center buildouts after Democrats take control of the House and Senate in January.

stock market news today

The Dow Jones Industrial Average plummeted over 1,800 points, erasing a 1,500-point gain from the previous session and leaving all 30 of its constituent stocks in negative territory. Meanwhile, the Nasdaq Composite dropped 5.5% to officially enter a technical correction by falling more than 10% from its recent peak. The S&P 500 similarly retreated 4.4%, with all 11 of its sectors ending the session with deep losses. Small-cap stocks were hit hard as well, pushing the Russell 2000 index into a technical correction following a drop exceeding 4.5%.

Wall Street suffered its worst session in months as a broad sell-off erased post-election gains.

The technology sector bore the brunt of the pressure, particularly chip and semiconductor firms. The Nasdaq 100 plunged over 6% to record its worst single-day drop since March 2020 at the onset of the Covid-19 pandemic, wiping out an unprecedented $2.3 trillion in market capitalization in a single session. The Philadelphia Semiconductor index tumbled 12%, plunging deep into bear market territory at 38% below its June peak. Prominent technology leaders faced heavy pressure, with Elon Musk's Tesla and SpaceX shares falling up to 9% and the Magnificent Seven stocks collectively losing over $1 trillion in market value. Nvidia shares fell 9%, dropping CEO Jensen Huang out of the global top ten richest list.

Why it matters

The historic downturn on Wall Street highlights growing investor anxiety over shifting political control in Washington and its potential impact on high-growth sectors like artificial intelligence and semiconductors. With major indices plunging deep into technical corrections and bear market territory, the resulting erosion of trillions in market value underscores the fragility of current market valuations and signals heightened volatility ahead for global investors.