Nasdaq Plunges 5.5% as Investors Abandon AI Trade After Election

The Nasdaq Composite fell 5.5% on November 5, 2026, entering correction territory as investors pulled back from artificial intelligence stocks following the election. A correction means a decline of at least 10% from a recent peak. The Dow Jones Industrial Average dropped more than 1,800 points. The selloff hit technology companies hardest, with AI-related shares leading the decline. Investors retreated from the AI trade — the wave of buying that had driven tech stocks sharply higher — as post-election uncertainty prompted a broad shift away from risk.