Dow Falls 1,833 Points and Nasdaq Enters Correction a Day After Rally

Wall Street went from a post-election rally on Wednesday to a sharp selloff on Thursday, Nov. 5. The Dow Jones Industrial Average fell 1,833 points, or 3.4 percent, to close at 51,523 according to CNBC, and the Nasdaq Composite slid into a correction, falling more than 10 percent from its October record high, CBS News and CNBC reported.

CBS reported the S&P 500 lost 335 points, or 4.4 percent, to 7,354, and the Nasdaq fell 1,422 points, or 5.5 percent, to 24,315. CNBC’s market coverage carried the same Dow decline and said the Nasdaq entered correction territory. The day before, the Dow had risen more than 1,500 points, its best day since April 2025, according to CNBC, and CBS called it the Dow’s biggest gain of the year.

Wednesday’s move followed Democratic wins in both chambers of Congress. CNBC reported investors seemed to expect gridlock that could limit the president’s agenda, and that Trump said he would work with Democrats. Oil prices also dropped, with CNBC reporting crude down more than 8 percent and CBS a drop of nearly 9 percent in Brent, which eased inflation worries. CBS said Brent recovered 2.6 percent on Thursday to $97.11.

The reversal was led by technology. CBS reported investors worried that Democrats in Congress and in the states could slow construction of data centers or push artificial-intelligence rules, and that some fear AI spending has built a bubble. Adam Crisafulli of Vital Knowledge cited growing ‘headline’ risks around AI, CBS said. Chris Larkin of E*Trade from Morgan Stanley described ‘visible cracks in the AI ecosystem,’ and Joe Maher of Capital Economics said the midterm shock could be a catalyst and that the AI boom ‘is in its final innings.’ Those readings are analysts’ opinions, not established causes.

Individual stocks fell hard. CBS listed Nvidia down 9.2 percent, Advanced Micro Devices down 17.3 percent and CoreWeave down 9.8 percent, and Trump Media & Technology Group down 10.5 percent to about $4, an all-time low.

The week’s economic calendar adds to the stakes. CNBC said traders are waiting for the October jobs report on Friday, and that ADP reported private employers added 86,000 jobs in October, slightly above forecasts. CNBC also reported a debt-ceiling fight could unsettle markets once Democrats take over. In its coverage, CNBC noted that no major index was at a record on Wednesday despite Trump’s claim that stocks hit record highs.