Tech Sell-off Sends Nasdaq Down 5%, Erasing Election Rally Gains

WHO:

Yahoo Finance - Investors assessed the implications of Democratic victories in the midterm elections for markets and the economy.

Yahoo Finance - Vice President JD Vance wrote on X, “The reason we lost [the midterm elections] is the war,” referring to the war in the Middle East.

CBS News - Wall Street analyst Adam Crisafulli of Vital Knowledge said investors were reacting to growing “headline” risks around AI.

CNBC - Texas Democratic governor-elect Gina Hinojosa has proposed a statewide moratorium on new data center permits.

CNBC - James Sullivan, JPMorgan’s managing director and co-head of global fundamental research, discussed borrowing costs on CNBC’s “Squawk Box Asia.”

CNBC - Sullivan said, “The fact that you're seeing this bifurcation in equity performance is largely driven by the view that existing capacity is significantly more valuable now because of incremental supply constraints.”

WHAT:

Techmeme - The Nasdaq 100 fell 6%, erasing a record $2.3 trillion in market value; the Philadelphia chip index fell 12%.

Investor's Business Daily - Tesla and SpaceX shares fell sharply after the midterm elections.

24/7 Wall St. - AMD reported Q3 2026 revenue of $13.38 billion, up 44.7% year over year and above the $13.08 billion consensus; non-GAAP earnings per share were $2.09, beating the $1.94 estimate. Data Center revenue rose 97% to $8.55 billion.

24/7 Wall St. - AMD forecast Q4 2026 revenue of approximately $17 billion, plus or minus 3%. CEO Lisa Su said the company expects revenue to grow more than 80% in 2027.

24/7 Wall St. - Representative Yassamin Ansari called for a pause on advanced AI development until adequate regulations are in place.

24/7 Wall St. - AMD, Nvidia, Intel, and Broadcom shares were reported down 13%, 7%, 8%, and 6%, respectively, in morning trading.

24/7 Wall St. - Intel guided Q4 revenue to $15 billion to $16 billion on October 29; Broadcom’s September 2 guidance called for Q4 FY2026 AI semiconductor revenue of $21.7 billion.

Alternet - At Intel’s peak in June, Trump said, “America’s stake is now over 60 Billion Dollars. When was the last time a president made America money??”

Alternet - Barron’s reported that the continuing decline in Intel shares had more than doubled the previously cited $11 billion loss in the government’s stake.

Alternet - The U.S. government’s Intel stake was valued at about $50 billion before the recent plunge and around $24 billion afterward, compared with an initial investment of $8.9 billion.

Alternet - Intel shares fell 29% in one day after an earnings report and another 11% over the following three full trading days; they were down 6% early Thursday.

Alternet - Trump Media & Technology Group shares fell to just over $5, their lowest recorded price, after reaching $175 at their peak.

Yahoo Finance - U.S. stocks fell sharply; the Dow dropped 2.9%, or more than 1,500 points, the S&P 500 fell 3.8%, and the Nasdaq Composite declined 5.2%.

Yahoo Finance - The PHLX Semiconductor Index fell 10% as Nvidia, Micron, and other chip stocks sank. Large-cap technology stocks were on track for their worst day since the COVID-19 pandemic sell-off.

CBS News - In early-afternoon trading, the Nasdaq fell 1,285 points, or 5%; the S&P 500 dropped 287 points, or 3.7%; and the Dow fell 1,542 points, or 2.9%.

CBS News - Nvidia shares fell 7.5%, after falling 3.2% in the prior session; Advanced Micro Devices dropped 14.6%, and CoreWeave fell 12.1%.

CNBC - As markets digested election results, Microsoft and Amazon each rose more than 6%; CoreWeave fell around 10%; Micron fell 7%; and Nvidia fell 3.17%.

Yahoo Finance - Brent crude traded around $97 per barrel and U.S. benchmark WTI crude at $90 per barrel. Layoff plans in October fell to their lowest level since 2023, according to Challenger, Gray & Christmas.

CBS News - Brent crude rose 2.6% to $97.11 per barrel, recovering much of its nearly 9% decline in the preceding session.

WHERE:

Yahoo Finance - The stock-market declines affected U.S. markets.

CNBC - Hinojosa’s proposed permitting moratorium is statewide in Texas.

WHY:

Techmeme - Technology stocks fell amid investor concerns about the AI trade after Democrats won Congress.

24/7 Wall St. - A Colorado legislative staff report cited state legislation and executive orders concerning data centers, including concerns about energy use and water and electricity costs.

Yahoo Finance - Challenger, Gray & Christmas said companies’ October layoff plans fell to their lowest level since 2023 as companies focused on retaining existing employees.

Alternet - Cato Institute economist Scott Lincicome said the government’s unrealized gains on Intel stock could not be realized without selling, and argued that a government exit could cause investor panic and damage the company.

CBS News - Investors were concerned that a shift in congressional political control could slow data-center construction and the rollout of facilities powering AI services.

CNBC - Democratic victories in key gubernatorial races raised the prospect of tougher scrutiny and permitting delays for data-center projects.

CNBC - Sullivan said borrowing spreads had widened significantly for neocloud companies, making additional capital substantially more expensive than for hyperscalers, which have more diversified customers and revenue.

Yahoo Finance - Oil prices rose amid uncertainty about whether President Trump would pursue a deal with Iran to end the war in the Middle East.

HOW:

CNBC - Hinojosa’s proposed moratorium would apply to new data-center permits; projects already under construction would reportedly be exempt.

CNBC - Nomura said projects expected to come online in 2027 were largely already under construction, while projects planned for 2028 faced greater exposure to permitting delays and regulatory uncertainty.

(UPDATED November 5, 2026 23:04 UTC)

Wall Street plunged as investors worried election results could slow AI infrastructure growth. The Nasdaq dropped six percent, wiping out $2.3 trillion in market value. Texas’s governor-elect proposed halting new data-center permits, while oil prices climbed amid war uncertainty.

(UPDATED November 5, 2026 22:09 UTC)

U.S. stocks plunged, with the Nasdaq down 5.2% and semiconductor shares falling sharply. Investors weighed election-driven risks to AI projects, including proposed Texas data-center permit restrictions. Oil rose amid uncertainty over Iran, while AMD reported record revenue and strong guidance.

(UPDATED November 5, 2026 21:03 UTC)

U.S. stocks plunged, with the Nasdaq dropping 5.2% as technology shares tumbled. Investors worried election victories could mean tougher scrutiny and delays for data-center projects. Texas governor-elect Gina Hinojosa proposed halting new data-center permits, while oil rose amid uncertainty over Iran.

(UPDATED November 5, 2026 20:03 UTC)

U.S. stocks plunged as chipmakers tumbled, with the Nasdaq falling about five percent. Investors weighed election results and risks that data-center permits could tighten. Oil climbed amid uncertainty over President Trump’s Iran policy as Brent neared $97.

(UPDATED November 5, 2026 19:09 UTC)

U.S. stocks plunged, with the Nasdaq down 5% as chip shares sank sharply. Investors worried election victories could bring tougher scrutiny and delays for data centers. Oil rose as uncertainty over a possible Iran deal clouded the outlook.