Thursday close: Nasdaq plunges 5.52% into correction as record $2.5T wiped out; Dow drops 1,833 points (Nov 5)
What happened
U.S. stocks closed sharply lower on Thursday, November 5, completing a violent two-day reversal after Wednesday's post-midterm rally. The Nasdaq Composite plunged 5.52% to 24,315.00, confirming correction territory (at least 10% below its October 6 record closing high) in its biggest single-day percentage drop since April 2025's 'Liberation Day' selloff. The Dow Jones Industrial Average fell 1,833 points, or 3.44%, to 51,523.06, fully erasing Wednesday's 1,500-point post-election surge. The S&P 500 dropped 4.36% to 7,353.73, with every sector finishing in the red. In dollar terms it was the largest single-day market-cap wipeout ever: S&P 500 firms shed $2.9 trillion and Nasdaq companies lost $2.5 trillion. The Magnificent 7 alone lost $1.04 trillion, led by Nvidia (-$374 billion, -9.3%) and Tesla (-$161 billion, about -10.8%), with Microsoft down $117 billion.
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Start your free 14-day trialWho’s affected
- Nvidia (NVDA): down ~9.3%, lost $374B in market value — the AI-chip leader is the epicenter of the data-center-slowdown fear. Tesla (TSLA): down ~10.8%, lost $161B — political/regulatory scrutiny of Musk's companies plus autonomy/AI plans under Democratic control. Microsoft (MSFT), Meta (META), Amazon (AMZN), Alphabet (GOOGL), Apple (AAPL): all fell, losing $117B, $58B, $55B, $42B and $59B respectively
- Meta most exposed via data-center buildout in Louisiana, Ohio and Texas. Broadcom (AVGO) -10%, Qualcomm (QCOM) -9% on soft guidance, Arm (ARM) lower on in-line guidance. Neoclouds crushed: CoreWeave -10%, Nebius -15%, IREN and Applied Digital down more than 14%. Dell (DELL) extended its selloff, down ~7.5% Thursday. Chip ETF (SMH) posted its worst day since March 2020. Defensive sectors (health care, staples, energy, utilities) absorbed rotation flows.