In brief
U.S. stocks fell sharply on Thursday as a mass selloff in AI‑related and semiconductor shares sparked a rout across technology sectors. The Dow Jones, S&P 500 and Nasdaq all posted their steepest monthly drops, while the VIX spiked to its highest level since March. Officials and industry voices cited potential regulatory constraints on data‑center expansion and a broader slowdown in AI investment as key drivers.
New York, Nov. 5 — U.S. stocks slid hard on Thursday after a wave of selloffs in semiconductor and artificial‑intelligence shares triggered a rout across technology sectors, according to Xinhua.
The Dow Jones Industrial Average fell 1,833.06 points, or 3.4 percent, to 51,523.06, the S&P 500 dropped 334.89 points, or 4.4 percent, to 7,353.73, and the Nasdaq Composite Index tumbled 1,421.52 points, or 5.5 percent, to 24,315.00.
All eleven sectors of the S&P 500 ended the day lower, led by information technology, followed by consumer discretionary and industrials. Semiconductor stocks suffered the heaviest losses, as investors worried that Democratic gains in the midterm elections could bring tighter limits on data‑center construction and slow AI infrastructure expansion.
Jay Hatfield, chief executive of Infrastructure Capital Advisors, said the selloff was "a true panic" and that it was entirely about chip stocks and the potential slowdown in the AI trade.
The market’s rapid deterioration also saw the Cboe Volatility Index rise 69.66 percent to close at 28.18, its highest level since late March.
U.S. President Donald Trump called the decline a "sad thing to watch" on social media and described the selloff as one of the worst days in history based on the election results.
Investor sentiment remained sharply negative, with brokers noting that earlier gains had been wiped out as fear spread through other sectors.
The Wall Street Journal reported that the PHLX SOX Semiconductor sector index slid 12% on the day, the largest one‑day decline since a 16% rout in March 2020.
BBC News added that stocks of companies heavily exposed to AI data centres, including key chipmakers, fell sharply, underscoring concerns about a slowdown in AI investment.
Financial Times strategists said the selloff reflected fears of a broader economic slowdown and reduced prospects for AI build‑out.
With the market outlook still uncertain, officials said it could take time for confidence to recover, as the market watched the evolving regulatory environment and post‑election policy direction.
