Tech stocks log worst day since 2020 as carnage comes to the AI trade
A sharp decline in semiconductor and technology shares extended a volatile retreat tied to AI investment and election-related uncertainty.
TL;DR
- Technology shares fell sharply on November 5, with semiconductor stocks among the weakest groups.
- Reuters reported the semiconductor index fell as much as 11% intraday and the Nasdaq Composite as much as 5%.
- The VIX posted its biggest one-day rise since April 2025 as Tesla and SpaceX shares also extended losses after the election.
MarketWatch described the session as the worst day for technology stocks since 2020, with the decline concentrated in the AI trade. That characterization refers to the outlet’s comparison of the day’s move. [1]
Reuters, republished by Yahoo Finance, reported that the semiconductor index fell as much as 11% and the Nasdaq Composite as much as 5% intraday. Several large technology companies fell by double digits during the session. [2]
Reuters connected the selloff to tighter financing for data-center projects and local ballot initiatives that could limit construction. Those were reported as contributing concerns, alongside broader market repositioning. [2]
The move followed a market rally the previous day and occurred before the next employment report. The reporting does not establish whether the decline signals a lasting change in AI-sector valuations or a short-term repricing. [1]
CNBC reported that Tesla and SpaceX lost more than $420 billion in combined market value after the midterms. Reuters separately reported that both companies’ shares extended losses as investors weighed possible effects on data-center construction. [3] [4]
Reuters reported that the VIX recorded its biggest intraday rise in more than 18 months as chip and data-center shares fell. CNBC separately reported that Tesla and SpaceX lost more than $420 billion in combined market value after the midterms. [4] [3]
Why it matters
The session connected expectations for AI infrastructure spending to chip and technology share valuations, with the Tesla and SpaceX declines illustrating how election-driven data-center concerns reached companies beyond chipmakers. The reports describe market repricing, not a confirmed change in investment plans or earnings.
Editor's note
Market moves are reported, not framed as investment signals. Intraday figures differ from closing levels.