How the Midterm Stock Market Rout Compares With Previous Crashes
Summary
U.S. stocks fell sharply on November 5, with technology shares leading the decline after Democrats’ election wins raised questions about data-center development and AI investment. The S&P 500 closed about 6% below its record, still well short of the 20% decline commonly used to define a bear market and the much larger losses in the dot-com crash.Key Facts
- The Nasdaq Composite fell 5.52% on November 5 and entered correction territory, more than 10% below its October record.
- The S&P 500 dropped 4.36%, while the Dow Jones Industrial Average fell 3.44%.
- Nearly $3 trillion was erased from the value of S&P 500 companies, according to Yahoo Finance.
- Nvidia shares fell 9%, Broadcom lost 10%, and an exchange-traded fund tracking semiconductor companies dropped more than 12%.
- President Donald Trump blamed voters for the market decline in a post on Truth Social and said he supported what his administration calls “Super Intelligence.”
- The article said the S&P 500 remained about 6% below its record after Thursday’s close, short of the 20% decline commonly used to mark a bear market.
- During the dot-com collapse, the S&P 500 fell about 49% from March 2000 to October 2002, and the Nasdaq lost 77%.
- Morgan Stanley said election results could delay or tighten restrictions on some data-center projects, while the broader AI investment cycle remained intact.
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