Nasdaq 100 Plunges 5.1% and S&P 500 Falls 2.8% as Chip Stocks Lead Post-Midterm Selloff

U.S. stocks suffered a sharp and accelerating decline on November 5, 2026, with the Nasdaq 100 falling 5.1% and the S&P 500 dropping 2.8% by midday, as a rotation out of technology and semiconductor stocks deepened following the Democrats' midterm election sweep. The Dow Jones Industrial Average also fell, losing roughly 1% during the session. The selling intensified through the morning, with the Nasdaq 100 moving from a 2.4% decline around 9:38 a.m. ET to a 3% drop by 9:47 a.m. ET and ultimately extending to 5.1% by approximately 10:30 a.m. ET.

The selloff was driven by fears that the Democratic sweep in the midterms would lead to tighter regulation of data centers and reduced semiconductor demand, sending a U.S.-listed chip stock ETF down more than 7.2% on the day. Investors rotated out of high-flying technology names and into so-called old-economy and economically sensitive stocks, reversing the previous session's post-election relief rally. The S&P 500 had opened the day near 7,675, but selling accelerated as the session wore on.