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TL;DR
The Nasdaq Composite fell 5.52% on Nov. 5, its steepest one-day drop since April 2025, and the Nasdaq-100 declined 6.36%. Reuters put the Nasdaq-100’s lost market value at about $2.5 trillion; investors were concerned about possible political and regulatory constraints on AI data center expansion, but no new federal law has passed.
The Nasdaq Composite fell 5.52% on Thursday, Nov. 5, its steepest one-day decline since April 2025, as investors reassessed the outlook for AI data center construction after U.S. election results. The Nasdaq-100 fell 6.36%, and Reuters estimated that the index’s companies lost about $2.5 trillion in market value—a figure that applies to the 100 largest non-financial Nasdaq-listed companies, not the entire exchange.
Nasdaq’s published closing data put the Composite at 24,315.00, down 1,421.51 points. The Nasdaq-100 closed at 26,629.81, down 1,807.36 points. The Composite’s fall was larger than its decline on April 4, 2025, when markets were reacting to tariff announcements, and left the index 11.9% below its Oct. 6 record. A drop of at least 10% from a recent peak is commonly described as a correction.
The selloff was especially severe in semiconductor shares. The PHLX Semiconductor index fell 12.25%. Reuters reported that Nvidia shares declined 9% and AMD fell 17%; several data center operators lost more than 14%, according to the same report. Amazon and Alphabet fell 2.2% and Microsoft declined 3.6% on Thursday. Reuters also reported that the VIX, a measure of expected stock-market volatility, recorded its largest increase since December 2024.
The political concern was that election outcomes could affect permits, power connections and tax incentives for large data center projects. Reuters and The National linked the market reaction to Democratic gains in Congress and state-level contests. Those outcomes could bring more scrutiny of the industry, but the possible impact on construction schedules and costs remains uncertain.
Infographic 01 · The day in numbers
The Nasdaq's worst day in 19 months
Chips and data center builders led the fall. The dollar figure in the headlines belongs to the Nasdaq-100, the 100 largest non-financial companies on the exchange.
Nasdaq Composite on Thursday, 5 November 2026: down 1,421.51 points to 24,315.00. The biggest one-day fall since 4 April 2025, 19 months earlier.
The five worst Composite days since March 2025
Daily change, closing values
Sources: Nasdaq Global Indexes (COMP, NDX, SOX closing data, retrieved 6 Nov 2026) · Reuters, 5 Nov 2026 (via The Straits Times). History checked back to 25 Mar 2025. Market value is Reuters’ calculation. Not investment advice.
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AI Infrastructure Faces New Political Risk
The decline shows how sensitive technology valuations have become to both the expected returns from AI investment and the infrastructure needed to support it. Data centers require large amounts of electricity, land and water. If project approvals take longer, incentives shrink or developers shoulder more infrastructure costs, some planned facilities could become less attractive or be delayed. That could affect data center operators, utilities, chipmakers and technology companies investing in AI capacity.
For investors, the distinction between a market reaction and a policy change matters. The selloff reflected concerns about what elected officials might do, not a confirmed nationwide restriction on data centers. Reuters reported that UBS estimated about 30% of planned U.S. capacity additions for 2028 could be at risk. That is an analyst estimate, not an approved policy or a measure of projects already canceled.
The move also matters beyond technology stocks. Data center expansion can shape local electricity demand, utility planning and community debates over land and water use. Decisions by state officials and local authorities may therefore influence both private investment and the pace at which new computing capacity comes online.
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Election Results and Project Approvals
The market reaction followed a volatile stretch for technology shares. On Wednesday, Nov. 4, the Composite rose 1.44%, even as Reuters reported that some data center operators and power companies fell. Amazon and Microsoft each gained about 6% during that session. One explanation offered to Reuters by a strategist was that existing facilities might become more valuable if fewer new ones are built. Thursday’s broad selloff reversed that earlier pattern.
The source material reports that Democrats won control of both chambers of Congress and flipped five governorships: Texas, Georgia, Ohio, Iowa and Nevada. The National, citing its analysis of Cleanview project data, said those states account for 37% of planned U.S. data center capacity, with Texas representing 22.8%. These figures describe planned capacity, not facilities already operating or projects certain to proceed.
Governors can influence project conditions through appointments to utility regulatory bodies and through state tax incentives. Local governments also play a role in permits and siting. The National reported that incoming governors in Texas, Georgia and Ohio had pledged pauses or restrictions on large data center projects; those campaign positions do not by themselves establish what policies will be adopted or how they would be implemented.
“The Nasdaq’s “deepest one-day drop since ‘Liberation Day’ in April 2025.””
— Reuters
Policy Changes Remain Unsettled
No new federal law restricting AI data center construction has passed, according to the source material. It is not yet clear what hearings, investigations or legislation the incoming Congress will pursue, or whether any proposals would change project approvals, tax incentives or energy costs. The president retains veto power, and analysts cited in the source expect possible congressional gridlock rather than sweeping changes.
State-level pledges also remain distinct from enacted rules. The available material does not establish the details, legal authority or timing of proposed pauses in Texas, Georgia or Ohio. Nor does it show how many projects would be delayed, canceled or redesigned if restrictions are adopted. The reported $2.5 trillion is an estimate of market value erased from the Nasdaq-100 during the session; it is not a measure of money withdrawn from the market or of losses realized by every investor.
The source also reports unofficial results showing 46 of 47 local data center measures across ten states went against proposed projects, including bans, size limits and pauses. Those results are described as unofficial, and the material does not provide the measures’ full details or final certification status.
Watch Congress, States and Utilities
Investors will look for concrete actions after elected officials take office, including committee hearings, legislation, state executive orders and decisions by utility regulators. The practical effects will depend on which proposals become binding rules, how they apply to existing projects and whether developers can secure power and permits under any new requirements.
Further market sessions may show whether Thursday’s decline reflects a lasting reassessment of AI infrastructure spending or a sharp response to political uncertainty. Company updates on capital spending, project timelines and electricity arrangements will also help clarify whether the concerns are affecting planned construction. Until those details emerge, the potential effect on U.S. data center capacity remains a forecast rather than a confirmed outcome.
Key Questions
How much did the Nasdaq fall on Nov. 5?
The Nasdaq Composite fell 5.52% to 24,315.00. The Nasdaq-100 declined 6.36% to 26,629.81.
What does the $2.5 trillion figure cover?
Reuters estimated that the Nasdaq-100 lost about $2.5 trillion in market value during the session. The index tracks 100 large non-financial companies listed on Nasdaq; the figure does not cover every Nasdaq-listed stock.
Did the election results immediately block data center projects?
No such nationwide block is confirmed in the source material. It describes election outcomes and proposed state-level pauses, but no new federal law has passed and campaign pledges are not enacted rules.
Why were semiconductor shares hit especially hard?
Investors were concerned that political scrutiny or higher infrastructure costs could slow AI data center construction, affecting expected demand for chips and related equipment. That explanation reflects the reported market concern; the source material does not establish that future chip demand has fallen.
Is the estimate about 2028 capacity a confirmed loss?
No. The source cites a UBS estimate that about 30% of planned U.S. capacity additions for 2028 could be at risk. It is a forecast, not a count of canceled projects or an enacted restriction.
Source: ThorstenMeyerAI.com
