Nasdaq falls 5.52% and enters correction territory
Nov 6, 2026
US stocks fell sharply on Thursday, November 5, 2026. According to CNBC, all three major US stock indexes recorded their worst day since April 2025.
How the indexes closed
According to CNBC:
- the Nasdaq Composite fell 5.52% to 24,315.00
- the S&P 500 fell 4.36% to 7,353.73
- the Dow Jones Industrial Average fell 1,833.06 points, or 3.44%, to 51,523.06
- the Russell 2000 index of smaller companies fell 4.45%
The Nasdaq closed more than 10% below the record it set in October, which put it in what is commonly called correction territory. The Russell 2000 also entered a correction. All 11 sectors of the S&P 500 ended the day lower, and the Dow gave back all of its gain from Wednesday, November 4.
What was reported about the sell-off
According to CNBC, the selling began in technology and AI-related stocks, amid investor concerns that the results of the US midterm elections could slow the construction of new data centres. CNBC reported that the selling then spread to other parts of the market. Semiconductor stocks were among the largest decliners.
What a correction is
A correction is usually defined as a fall of at least 10% from a recent high. A fall of 20% or more is usually called a bear market. These are conventions rather than official definitions, and they do not by themselves indicate what will happen next. Corrections have happened many times in the history of the stock market, both during longer rising periods and before larger declines.
What the Nasdaq and the S&P 500 are
The Nasdaq Composite includes more than 3,000 companies listed on the Nasdaq exchange and has a large weight in technology companies. The Nasdaq-100 is a narrower index of 100 of the largest non-financial companies on the exchange. The S&P 500 covers about 500 large US companies across all sectors, while the Dow Jones Industrial Average follows 30 large companies.
Because a small number of very large technology companies make up a big share of the Nasdaq and the S&P 500, moves in these companies can have a strong effect on the indexes.
Index funds and ETFs
Investors can follow these indexes through exchange-traded funds (ETFs). For example, the Invesco EQQQ Nasdaq-100 UCITS ETF (EQQQ.ETF) and the iShares Nasdaq 100 UCITS ETF (CNDX.ETF) track the Nasdaq-100, while the iShares Core S&P 500 UCITS ETF (CSPX.ETF) and the Vanguard S&P 500 UCITS ETF (VUSA.ETF) track the S&P 500. The value of these ETFs rises and falls with the underlying index and, for investors outside the US, with currency movements.
Diversification
Index funds spread money across many companies, which can reduce the effect of any single company on the result. However, when an index has a large weight in one sector, a fall in that sector can still move the whole fund. Funds that track broader indexes, or that combine different regions and asset types, are spread across a wider range of investments.
Volatility
Large one-day moves are often followed by more volatile trading. CNBC reported that the Cboe Volatility Index (VIX), a measure of expected volatility in the S&P 500, rose to its highest level since March 31 during the session.
What to watch
Key items include the US jobs report for October, scheduled for Friday, November 6, further company results, comments from Federal Reserve officials before the December 8–9 meeting, and any news about data-centre policy.
Risks and uncertainties
Stock markets can rise or fall sharply over short periods. Indexes with a high weight in a single sector, such as technology, can be more volatile than broader indexes. Past moves do not indicate future moves.
What this means for investors
For Investing.one users following US index ETFs such as EQQQ.ETF, CNDX.ETF, CSPX.ETF and VUSA.ETF, the moves in the Nasdaq and the S&P 500 may be relevant. The information above is based on reporting by CNBC.
Sources
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