--- title: Nasdaq plummets 4% into correction territory | daily.dev description: U.S. stocks sold off sharply on Thursday, erasing the postelection rally from a day earlier. The Nasdaq Composite fell 5.3% into correction territory, over 10%... canonical: https://daily.dev/posts/nasdaq-plummets-4-into-correction-territory-nyx7kuiok twitter:card: summary_large_image twitter:site: @dailydotdev og:type: website og:site_name: daily.dev og:title: Nasdaq plummets 4% into correction territory | daily.dev og:description: U.S. stocks sold off sharply on Thursday, erasing the postelection rally from a day earlier. The Nasdaq Composite fell 5.3% into correction territory, over 10%... og:url: https://daily.dev/posts/nasdaq-plummets-4-into-correction-territory-nyx7kuiok og:image: https://api.daily.dev/og/posts/nYx7KuIOK.png og:image:alt: Nasdaq plummets 4% into correction territory og:image:width: 1200 og:image:height: 630 og:locale: en --- > ## Documentation Index > Fetch the complete documentation index at: https://daily.dev/llms.txt > Use this file to discover all available pages before exploring further. # Nasdaq plummets 4% into correction territory **[Hacker News](https://daily.dev/sources/hn)** · 3 min read · 0 upvotes · 0 comments ## Summary U.S. stocks sold off sharply on Thursday, erasing the postelection rally from a day earlier. The Nasdaq Composite fell 5.3% into correction territory, over 10% below last month's record. The S&P 500 dropped 3.9%, its worst day since April 2025, and the Dow shed 1,620 points, or 3%. The Russell 2000 also entered correction territory, down 4.6%. AI and chip stocks led the decline on fears a Democratic sweep in the midterms could slow data-center buildout. Nvidia and Broadcom each fell 8%, Oracle dropped 7%, and the iShares Semiconductor ETF sank 11%. Qualcomm fell 10% despite beating earnings estimates, citing a weak outlook. Neocloud names CoreWeave, Nebius and Iren dropped 13%, 16% and 17%. ## Full article daily.dev links to this article rather than hosting it. Read it at the original source: ## Questions this post answers ### Why did AI and chip stocks crash after the 2026 midterm elections Investors sold AI-related chip and data-center stocks on fears that a Democratic sweep of Congress and key governorships could slow the data-center buildout. Nvidia and Broadcom each fell 8%, Oracle dropped 7%, and the iShares Semiconductor ETF fell 11%, its worst day since March 2020. Senator Bernie Sanders had called for a national data center moratorium, adding to the pressure on the sector. _Investors weighing AI stock exposure can follow policy-driven swings in real time on daily.dev._ ### Why did Qualcomm stock drop even though it beat earnings estimates Qualcomm stock fell 10% despite reporting earnings that beat estimates, because the company issued a weaker-than-expected earnings outlook. The drop came amid a broader selloff in chip stocks, with the iShares Semiconductor ETF down 11% the same day, suggesting the market reacted more to forward guidance than to the quarter's results. _Developers tracking semiconductor earnings reactions can keep tabs on chip-sector news via daily.dev._ ## Community take How the wider developer community reacted, aggregated from 1 discussion and 110 comments across hackernews (as of 2026-11-05). **TL;DR:** Commenters largely downplay the drop as statistically unremarkable market volatility tied to election uncertainty and AI/data-center buildout fears, while a side debate rages over whether such corrections are actually rare or routine, with some pointing to fund liquidations and stretched valuations as a more concerning undercurrent. **Sentiment:** 10% positive · 55% mixed · 35% skeptical **The case for** - Several note the market historically rebounds quickly after similar drops, framing it as a buying opportunity. - Some argue the drop is a healthy/overdue repricing given stretched AI valuations rather than a crisis. - A few see political/regulatory uncertainty from the election as a temporary, resolvable factor. **The pushback** - Many dispute the statistical framing, arguing volatility is clustered so 'happens twice a year' understates how notable the drop is. - Reports of multiple billion-dollar hedge funds/pods being liquidated are cited as a more serious underlying stress than the headline number. - Concerns raised about data-center/AI buildout slowing due to political backlash and ballot measures against data centers. - Skepticism that financial journalism sensationalizes routine volatility with dramatic language like 'plummet'. - Some see this as a symptom of an overextended, overhyped AI investment bubble that could unwind further. **By community** - hackernews (mixed): Discussion splits between dismissing the drop as routine market noise/statistics and digging into specific worries like fund blowups, AI capex pullback, and political uncertainty, with recurring tangents on media sensationalism. **Hottest debate:** Whether a 4-5% single-day drop is statistically rare and thus genuinely newsworthy, or just normal clustered volatility being overhyped by headlines. **Open questions** - Will the AI/data-center buildout actually slow materially due to political and ballot-measure opposition? - How many and how significant are the hedge funds/pods reportedly being liquidated amid this selloff? - Will the market rebound quickly as commenters expect based on past patterns, or is this the start of a larger AI valuation correction? **Highlights** > According to the Googles, there have been approximately 14,000 trading days since the Nasdaq Composite was founded, and it has fallen four-percent or more 147 days, meaning that we get a decline like this roughly every 100 trading days, which means about twice a calendar year, very roughly. That's newsworthy, but also not extremely unusual. The more interesting detail than nasdaq overall is just what sectors are having bad days and how concentrated that is. Seems to be predominantly AI companies, which is very relevant to the HN crowd. > — [compiler-guy on hackernews · 8 comments](https://news.ycombinator.com/item?id=50382257) > It does change the point! If it happened roughly twice a year, it's not as noteworthy when it happens than if tends to happen every other year, but four times. It's more noteworthy when it happens the more clustered it tends to be. If it were typical that we'd go ~7 years with none then have ~16 in a single year, it would be huge news when it happens. > — [furyofantares on hackernews](https://news.ycombinator.com/item?id=50383001) > Alot going on today. a 4% drop in a day is pretty darn big. 3 different pods are being liquidated that i've heard of. And the data center trade has been unwound in just 2 days is a pretty violent shock. Lots of rumors about situational awareness also in alot of trouble. I feel for this guy a bit. He did really well to get a good slug of Anthropic shares that made his investors alot of money. But since about July when it was clear that Anthropic was done going up like a rocket ship his investors have probably been hounding him about how he's going to make money outside of Anthropic. his first foray into the public markets was a disaster and might set a record for fastest wipe out from start to finish that forced him to have to sell his public book escape a wind up. But due to Anthropic taking a possible IPO valuation cut he's had to go back to the public markets at the worst time and if rumours going around today are correct, he's looking at how to liquidate his public portfolio for the second time in the quarter. > — [chollida1 on hackernews · 10 comments](https://news.ycombinator.com/item?id=50382037) > Those are Billion dollar funds, those are large fish:) Troluce and Axebrook had more than $1.5B pulled from them by Millennium. Walleye is a $17B AUM fund. > there are like a zillion of these pod shops and tiny firms. doesn't mean much. wake me up when a big fund fails I get that not everyone knows the industry but consider this your wakeup call:) > — [chollida1 on hackernews · 1 comments](https://news.ycombinator.com/item?id=50383654) > Given the election result the AI bailout ain’t coming, combined with growing concern AI spending has gotten too forward on its skis. That’s freaking out the markets. > — [cmiles8 on hackernews · 3 comments](https://news.ycombinator.com/item?id=50382326) **Source threads** - [hackernews](https://news.ycombinator.com/item?id=50381623) · 135 points · 110 comments ## Similar posts on daily.dev - [US tech stocks see sharp falls over AI cost fears](https://daily.dev/posts/us-tech-stocks-see-sharp-falls-over-ai-cost-fears-ngn0paqfs) · Hacker News · 0 upvotes · 0 comments - [Deutsche Bank reportedly upgrades US tech after $2tn Nasdaq selloff](https://daily.dev/posts/deutsche-bank-reportedly-upgrades-us-tech-after-2tn-nasdaq-selloff-y7ugbloyx) · The Next Web · 0 upvotes · 0 comments - [AI chip stocks lost 12% in two days as investors hunted new winners](https://daily.dev/posts/ai-chip-stocks-lost-12-in-two-days-as-investors-hunted-new-winners-jgxockyul) · The Next Web · 1 upvotes · 1 comments - [From stocks to crypto, markets reel as AI doubts grow](https://daily.dev/posts/from-stocks-to-crypto-markets-reel-as-ai-doubts-grow-wuscja6ia) · TechCentral · 0 upvotes · 0 comments --- Tags: [#nvidia](https://daily.dev/tags/nvidia), [#investing](https://daily.dev/tags/investing) [View this post on daily.dev](https://daily.dev/posts/nasdaq-plummets-4-into-correction-territory-nyx7kuiok) ```json {"@context":"https://schema.org","@graph":[{"@type":"Organization","@id":"https://daily.dev/#organization","name":"daily.dev","url":"https://daily.dev","logo":{"@type":"ImageObject","url":"https://daily.dev/apple-touch-icon.png","width":180,"height":180},"sameAs":["https://twitter.com/dailydotdev","https://github.com/dailydotdev","https://www.linkedin.com/company/daily-dev-ltd"]},{"@type":"WebSite","@id":"https://daily.dev/#website","url":"https://daily.dev","name":"daily.dev","publisher":{"@id":"https://daily.dev/#organization"},"potentialAction":{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https://daily.dev/search?q={search_term_string}"},"query-input":"required name=search_term_string"}}]} {"@context":"https://schema.org","@type":"TechArticle","headline":"Nasdaq plummets 4% into correction territory","url":"https://daily.dev/posts/nasdaq-plummets-4-into-correction-territory-nyx7kuiok","mainEntityOfPage":{"@type":"WebPage","@id":"https://daily.dev/posts/nasdaq-plummets-4-into-correction-territory-nyx7kuiok"},"datePublished":"2026-11-05T18:42:31.279Z","dateModified":"2026-11-05T22:56:06.851Z","description":"U.S. stocks sold off sharply on Thursday, erasing the postelection rally from a day earlier. 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