Wall Street Plunges: AI Fears Trigger Worst Day Since April 2025

Wall Street indices experienced a severe sell-off on Thursday, November 6, 2026, marking the worst day for the Dow Jones, S&P 500, and Nasdaq Composite since April 2025. The Dow Jones plummeted over 1,800 points, wiping out all gains from the previous day's post-midterm election rally. Investors reacted to fears of potential clampdowns on AI expansion and data center development following the Democratic party's control of the House and Senate starting in January 2027.

The Nasdaq Composite fell 5.5%, entering a technical correction, defined as a drop of over 10% from its peak. Similarly, the S&P 500 declined 4.4%. The Nasdaq 100 index, heavily weighted with tech and semiconductor stocks, saw its worst single-day fall since March 2020, losing over 6% and erasing $2.3 trillion in market capitalization. This placed the Nasdaq 100 in bear market territory, down 16% from its peak.

Other indices also suffered significantly. The Russell 2000 smallcap index entered a technical correction, dropping over 4.5%. The Philadelphia Semiconductor index plunged 12%, its worst day since March 2020, and is now down 38% from its June 2026 peak. Even prominent tech stocks were not spared, with Nvidia falling 9% and Elon Musk's companies, Tesla and SpaceX, experiencing losses up to 9%, collectively wiping out over $420 billion. Many S&P 500 constituents (34.6%) and a majority of Nasdaq 100 stocks (58.4%) are now trading in bear market territory.