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TL;DR
The Nasdaq Composite fell 5.52% on Nov. 5, its steepest one-day decline since April 2025, while the Nasdaq-100 dropped 6.36%. Investors focused on the possibility that election results could lead to more oversight, fewer incentives and higher costs for AI data center projects; no new federal restrictions have passed.
The Nasdaq Composite fell 5.52% on Thursday, Nov. 5, while the Nasdaq-100 dropped 6.36%, as investors considered whether election results could slow or raise the cost of US AI data center construction. The selloff came amid concerns about potential changes to permits, power costs and tax incentives, but no new federal restrictions have passed.
Nasdaq’s published data shows the Composite closed at 24,315.00, down 1,421.51 points. It was the index’s largest one-day fall since April 4, 2025, when it declined 5.82% during the tariff shock. The Composite ended 11.9% below its Oct. 6 record, putting it in correction territory, commonly defined as a decline of at least 10% from a recent peak.
The Nasdaq-100 closed at 26,629.81, down 1,807.36 points. Reuters estimated the move erased about $2.5 trillion in market value from the 100 largest non-financial companies on the exchange; that figure does not refer to every Nasdaq-listed stock. Semiconductor shares were hit particularly hard: the PHLX Semiconductor index fell 12.25%. Reuters reported Nvidia shares fell 9% and AMD shares fell 17%, with several data center operators down more than 14%.
Reuters and The National linked the selling to investors’ concerns about election outcomes and the future of data center projects. The potential consequences discussed by analysts include greater congressional scrutiny, reduced tax incentives and developers bearing more of the costs of electricity and water. The market moves are confirmed; the extent of any policy changes is not.
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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Why Data Center Costs Matter
AI development depends on large facilities that require substantial electricity, land, water and grid connections. If projects face longer approval processes or must pay more for utilities and infrastructure, developers could delay construction or reassess planned capacity. That could affect data center operators, power companies and chipmakers, as well as the major technology firms investing in AI computing.
Thursday’s sharp declines show that investors are responding to the risk of changed rules, not to a confirmed new federal policy. Reuters reported that Nvidia fell 9%, AMD 17% and several data center operators more than 14%. Those figures reflect one trading session; they do not establish the long-term effect of election results on company earnings or AI demand.
The distinction matters for readers trying to understand the selloff: policy uncertainty is not a construction ban. Proposed pauses, possible oversight and cost estimates may influence expectations, but they are not the same as enacted rules. Stocks can remain volatile, and investors can lose money; this report is not investment advice.
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Election Results and Project Approvals
The selloff followed a volatile stretch for technology stocks. On Wednesday, Nov. 4, the Composite rose 1.44%, even as Reuters reported that data center operators and power companies fell. Amazon and Microsoft each gained about 6% during that session. The following day, the broader technology trade reversed, with Amazon and Alphabet down 2.2% and Microsoft down 3.6%, Reuters reported.
The source material says Democrats won control of both chambers of Congress and several governorships. Reuters reported expectations of more hearings and investigations into the AI build-out. The National reported Democratic gubernatorial victories in Texas, Georgia, Ohio, Iowa and Nevada, and said those states account for 37% of planned US data center capacity based on its analysis of Cleanview project data. It also reported that incoming governors in Texas, Georgia and Ohio had pledged pauses or a moratorium on large projects. These are reported campaign positions, not enacted statewide restrictions.
Governors can influence project conditions through appointments to utility-regulation bodies and through state incentives. Local governments also make decisions about land use and permits. The source material reports that 46 of 47 local data center measures in ten states opposed projects, based on unofficial results. Those local votes may shape particular projects, but they do not by themselves establish a national policy shift.
“The Nasdaq’s deepest one-day drop since ‘Liberation Day’ in April 2025.”
— Reuters
Policy Changes Remain Unsettled
No new federal law has passed to restrict data center construction, and the source material says President Donald Trump retains veto power. Analysts cited by Reuters expect political gridlock could limit sweeping changes. It remains unclear which proposals from incoming governors will become official policy, what authority they can use, or how quickly any project-specific decisions may take effect.
The estimate that about 30% of planned 2028 capacity additions could be at risk is attributed to UBS and remains a forecast, not a government decision or a confirmed count of canceled projects. The reported local ballot results were unofficial. The source material also does not establish how many data center projects have been delayed, canceled or repriced as a result of the election, or whether Thursday’s losses will persist.
Watch Permits, Utility Decisions
Investors and project developers will be watching for the incoming governors’ formal actions, state utility-regulator decisions, and local permitting outcomes. Congressional committee activity after the new Congress convenes in January may provide a clearer indication of whether oversight will lead to proposed legislation or remain focused on hearings and investigations.
Company disclosures and subsequent market sessions may also show whether concerns about data center costs are changing investment plans. For now, the confirmed development is a steep one-day selloff; the political and commercial consequences for AI infrastructure remain unsettled.
Key Questions
How much did the Nasdaq fall on Nov. 5?
The Nasdaq Composite fell 5.52% to 24,315.00. The Nasdaq-100 fell 6.36% to 26,629.81.
What does the reported $2.5 trillion loss refer to?
Reuters estimated that about $2.5 trillion in market value was erased from the Nasdaq-100, which tracks the 100 largest non-financial companies on the exchange. The estimate does not cover all Nasdaq-listed stocks.
Have new rules restricting AI data centers been passed?
No new federal law restricting data center construction has passed, according to the source material. Potential oversight, pauses and changes to incentives remain matters of political debate or reported campaign positions.
Why did election results affect technology shares?
Investors considered whether changes in Congress and state governments could affect permits, tax incentives and utility costs for data centers. The market reaction reflects concern about possible future conditions, not proof that projects have already been halted.
What does the UBS estimate about 2028 capacity mean?
The source material attributes to UBS an estimate that about 30% of planned 2028 capacity additions could be at risk. It is a forecast, not a confirmed tally of canceled or delayed capacity.
Source: ThorstenMeyerAI.com
