Chip stocks crash, Kospi halts, Europe pulls back
Dubai: Wall Street suffered its worst session since April 2025 on November 5. An AI and chip sell-off wiped out the post-election rally and pushed the Nasdaq into a correction. The Dow Jones Industrial Average fell 1,833.06 points, or 3.44 per cent, to 51,523.06. The S&P 500 dropped 4.36 per cent to 7,353.73. The Nasdaq Composite lost 5.52 per cent to 24,315, closing 11.9 per cent below its…
On November 5, Wall Street experienced its worst trading session since April 2025, largely due to a sell-off in the artificial intelligence and chip sectors. This decline led to the Nasdaq entering a correction phase. Major stock indices such as the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite all suffered significant losses, with the Nasdaq Composite dropping 11.9% from its October 6 record high.
Nvidia and the Philadelphia Semiconductor Index saw particularly sharp declines, both losing over 10% in value. Analysts attribute this market downturn to political factors, particularly the potential for stricter regulations and slower approvals for data centers following the recent US elections. However, many still believe that demand for AI technologies remains strong, despite the market sell-off.
European markets also faced a downturn on the same day, with European stocks initially rising but falling once Wall Street opened in the morning. Tech-heavy stocks like ASML and Siltronic saw significant drops, contributing to the overall negative trend. Asian markets, including Tokyo and Seoul, mirrored the US market's decline, with their stock indices also experiencing substantial losses.
Written by urgent.news from Gulf News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
