Trading Day: A November 5 market bonfire

On November 5, US stocks experienced a significant decline, primarily driven by a sharp downturn in tech and AI-related stocks due to the Democrats' victory in the midterm elections. Chip stocks recorded their largest single-day drop on record, with interest rates traders pushing back the Federal Reserve's next rate hike to March.

The tech-stock rout accelerated, with the Nasdaq falling 14% from its all-time high and wiping out $2 trillion in market cap. The Bank of England raised rates for the first time since 2023, signaling more hikes may be on the horizon. The market's uncertainty stems from concerns over the impact of Democratic control over Congress on the data center buildout, leading to a shift in investor sentiment towards the tech sector.