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Posted on 11/05/2026 8:15:54 AM PST by Red Badger
The Nasdaq Composite plummeted on Thursday, erasing the sharp gains from the previous session, as investors continued to rotate away from technology stocks and into more defensive areas of the market.
The tech-heavy Nasdaq declined 4.9% and dipped into correction territory, trading more than 10% below a record set last month. The S&P 500 was down 3.2%. The Dow Jones Industrial Average shed 1,136 points, or 2.1%, as gains in stocks such as Chevron and Johnson & Johnson were not enough to spare the 30-stock index from the tech selling spree. The Dow erased more than half of its advance from Wednesday’s massive rally.
hide content NASDAQ Composite RT Quote | Exchange | USD 24,640.553 quote price arrow down-1,095.96 (-4.26%) Last | 11:15 AM EST
WATCHLIST + Quote Details
Nasdaq Composite, 5-day Stocks related to the artificial intelligence trade — particularly those linked to the chips industry and data centers — slid for a second day. Investors fear that a Democratic sweep of both chambers of Congress as well as victories in key gubernatorial races could spell more regulation of the AI buildout across the country.
Chipmakers Broadcom and Nvidia each fell 9% Thursday, as did others such as software stock Oracle . Another chip stock, Qualcomm , reported earnings that beat estimates, but the stock dropped 13% on a weaker-than-expected earnings outlook. The iShares Semiconductor ETF (SOXX) was down 11%.
Additionally, Elon Musk’s Tesla and SpaceX dropped 10% each.
Shares of neocloud companies also retreated, with CoreWeave losing 14%, Nebius sliding 17% and Iren shedding 19%, amid those worries about a backlash to the industry in light of the election results in various states.
Underneath the surface, other parts of the market appeared to be holding up. Consumer staples stocks saw gains, with the sector rising more than 1%. Energy and utilities stocks were also higher.
“A shakeout among the most speculative parts of the theme is underway,” said MRB Partners in a Thursday note. “The U.S. mid-term election results will add to headwinds for big tech and the data center buildout.”
Trading on Wednesday showed investors adjusting to midterm results, which showed Democrats securing comfortable majorities in the House of Representatives and Senate. The Dow jumped more than 1,500 points to notch its best day since April 2025, while the S&P 500 and Nasdaq Composite popped more than 1% each.
U.S. crude oil — which tumbled below $90 per barrel on Wednesday as investors anticipated that the Democratic Party may use their newfound leverage to pressure President Donald Trump into ending the Iran war — reversed course Thursday. West Texas Intermediate futures were last up more than 2% to just above $90 a barrel, while Brent crude futures gained more than 2% to around $97.
Wall Street is measured on the outlook for Qualcomm after the company delivered a weak earnings forecast on Wednesday. Analyst Stacey Rasgon at Bernstein has a market-perform rating on the stock and a price target of $155; Joseph Moore at Morgan Stanley has an equal-weight rating and a price target of $197.
Customer diversification is the buzzword on the Street for Qualcomm, as mentioned in multiple research notes.
“The debate has shifted to diversification: ambitious data center targets of $5B in FY27 and $15B+ in FY29, and continued strength in autos,” Morgan Stanley’s Moore said on Thursday.
— Tobias Burns
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The AI bubble is bursting.
China is laughing their asses off.................
Nobody is giddy about the prospect that Democrats are going to make the economy better. They can only make it worse. We still have two years of a Republican presidency to blunt the edge of the Democrat sword which should restore some confidence in the short term.
The Democrats stated they would stop the data center buildout. Biggest surprise is that stocks initially went up yesterday (maybe/hopefully stupid Democrats were buying yesterday?).
If anything, they were shorting the stocks...........😁
The impact of putting the commies in charge is finally sinking in.
This is surprising!
I would think that stocks for tech that could be used to build the surveillance state would be going through the roof now that the DSA/Dhimmicrats have control. Flock should be doubling in price and even though the Dims slam AI it’s only because they don’t have full control of it yet. Certainly they love it more today.
Any company making Antifa gear should be doing well, too. Glass and plywood sales will likely go up soon.
Have the food producers announced they are going full halal yet?
Watch Coleman stock, they manufacture tents.
Can you imagine how well stock in cartels would do if it was traded?
This. They knew what was coming. In the long run complete DC gridlock will be good.
Out of the blue, a stunning opportunity for domination of virtually everything appeared within their easy reach: artificial intelligence.
To control the world with artificial intelligence, leftists need to gain control of energy and data centers where chips are located. The assault is about to upshift into high gear.
We will be told that the issues are fear of robots, energy costs, water, job losses and disparity of wealth creation, but savvy conservatives know the driving ambition is power.
“but savvy conservatives know the driving ambition is power.”
But don’t we want power too?
Every group yearns for power to implement what they want. It’s a universal desire. What differs is what each wants to do with its power.
Traders sobered up after cheering all day yesterday.
Oh, no! The one-day trend is crystal clear!!!!
“Sell Mortimer sell!”.
I have often put it this way: they seek power because they would be God.
Yeah, they realized that the IRGC will regain control of the strait
You’re a regular Jim Cramer!..................
You’re a regular Jim Cramer!..................
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