Update: Nasdaq plunges 5% as the chip rout deepens, and the Dow gives back all of Wednesday's rally

This updates our midday report, when the Nasdaq was down about 4%. The selling got worse into the afternoon. CNBC reported that the Nasdaq Composite fell 5.3% and was trading more than 10% below its record from last month, that the S&P 500 was heading for its worst day since April 2025, and that the Dow had erased all of Wednesday's post-election gain.

The numbers at about 1:46 PM ET

We pulled these from Yahoo Finance and compared them with Wednesday's close. They will change before the bell.

What changed since midday

Three things. First, the damage has spread beyond tech. CNBC listed Caterpillar down about 5%, and JPMorgan and Boeing each down about 4%, and the small-cap Russell 2000 also fell into a correction, down 4.6% at the time of its report. Truist's Keith Lerner told CNBC the tech selloff "is now feeding itself into the broader market."

Second, the chip losses are historic by one measure. CNBC said the iShares Semiconductor ETF was down about 11%, which would be its worst day since March 2020.

Third, fear is rising: CNBC reported the Cboe Volatility Index at its highest since March. Yahoo Finance data showed the VIX near 26.5 against 16.6 on Wednesday's close.

Why, according to the market's own commentary

CNBC attributes the move to worry that a Democratic sweep of Congress and key governorships could slow the AI data center buildout, citing Sen. Bernie Sanders' call for a national data center moratorium. That is investors' interpretation, not a policy that exists. Nothing has been enacted, and the Chronicle has found no filing or official statement changing any company's spending plans.

Who feels it

For owners of a company with a 401(k) match in target-date funds, a day like this shows up as a few percent on the statement, not a crisis, because those funds hold bonds too. The harder hit are traders who held leveraged chip ETFs or short-dated options into Wednesday's rally, and suppliers whose customers are data center builders, such as electrical contractors and HVAC firms, who may now hear that projects are "under review." We have no evidence yet that any project has been cancelled.

The close matters. An official correction needs a close at least 10% below the Oct. 6 record, roughly 24,840 or lower, and the index is trading below that now, but the final level is still hours away. Check the 4 PM close before repeating the label.

Sources: CNBC live updates; Yahoo Finance index and stock data pulled about 1:46 PM ET Nov. 5, 2026; Yahoo Finance and WSJ live-coverage headlines. Figures are intraday and may be delayed. This is market information, not investment advice.