S&P 500 tumbles 3.2% as AI selloff erases post-election rally
Published on 11/05/2026 at 18:55 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWSAI Selloff Reverses Election Rally
- The S&P 500 fell 3.2% in Thursday morning trading, more than erasing its previous session's advance.
- AI chip and data-center stocks led the decline, while a majority of S&P 500 constituents still rose.
- The index had closed at 7,688.62 on November 4, up 1.58%.
The S&P 500 came under heavy pressure on Thursday, November 5, as renewed selling in artificial-intelligence and semiconductor stocks more than erased the index's post-election advance from the previous session. An Associated Press market report said the index was down 3.2% after the opening decline accelerated through the morning.
The move followed a 1.58% gain on Wednesday, when the index closed at 7,688.62, according to S&P Dow Jones Indices. Thursday's decline therefore represented a sharp reversal in market direction, although the session had not yet reached its close at the time of the cited intraday report.
AI Stocks Drive Broad Index Weakness
According to the Associated Press, Nvidia fell 8.3%, while Advanced Micro Devices dropped 15.9%. CoreWeave, which rents access to AI chips through the cloud, lost 14.9%, and GE Vernova, a supplier linked to data-center power demand, fell 9.1%. Because several of these companies have become large index constituents, their losses exerted disproportionate pressure on the capitalization-weighted S&P 500.
The selling reflected several overlapping concerns. Investors have questioned whether the construction of additional AI data centers can continue at its previous pace as borrowing costs remain high. Tuesday's U.S. midterm election results added a policy dimension, with Democratic victories raising the possibility of tighter oversight or construction limits in some areas. That could reduce demand for chips, electricity and related infrastructure.
Gains Elsewhere Limit Market Breadth
The decline was not uniform across the index. The AP reported that roughly two out of every five S&P 500 stocks were rising, led by AppLovin after stronger-than-expected results and a share-buyback authorization. Tapestry also advanced after reporting better profit and raising its financial outlook.
Other markets provided a mixed backdrop. Brent crude recovered part of its sharp Wednesday decline, while the 10-year U.S. Treasury yield eased to 4.84% from 4.90% late Wednesday. The combination of falling yields and renewed pressure on high-growth technology shares underscored the market's ongoing rotation rather than a uniform deterioration in all sectors.
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