Nasdaq plunges 5.52% in a day as ~$3 trillion vanishes a day after Democrats' win; Nvidia gives back all 2026 gains

"The AI bubble burst is underway. This is the greatest day of my life" (10,000 likes). One X user posted that on Nov. 5. Others joked Anthropic picked a bad time to IPO; Ed Zitron wrote "At this point, Anthropic may not IPO" (about 1,700 likes). We checked what actually happened on Wall Street.

According to Topstar News, the Nasdaq Composite closed down 5.52% at 24,315.00 on Nov. 5 (U.S. Eastern). The Dow fell 1,833.06 points (3.44%) to 51,523.06 and the S&P 500 fell about 4.35%. Nvidia dropped 9.26%, Tesla 10.77%, and SK hynix's ADR fell more than 13%. Citing AP, the report said it was the S&P's biggest one-day fall since the April 2025 tariff shock, and the Nasdaq entered a correction about 11.9% below its October peak. Fortune said roughly $3 trillion in market value disappeared. The day before, the Dow had risen 1,569 points (3%), its best post-midterm day in 44 years. The Philadelphia Semiconductor Index fell about 9.75% intraday per Reuters, at one point 11%. Morning Brew said Nvidia is now negative on the year (about 390 likes).

The trigger was fear of data center curbs. Newspim reported that Democratic control of both chambers fed an 'AI delay' worry and pushed investors out of chip and AI shares. KFDM reported that South Carolina Senator-elect Annie Andrews called for a two-year data center moratorium and North Carolina Senator-elect Roy Cooper wants data centers to cover their full energy costs. Less than 48 hours after the election, OpenAI pledged to pay the full power costs of its data centers (per CNBC-citing posts). Newspim added that experts see deeper roots: doubts that AI spending will pay off had piled up, and the election was the 'last nail'. Qualcomm's smartphone revenue fell 26% to $5.14 billion and ARM's outlook disappointed. The election does not mean data center construction stops.

Seoul's market on Nov. 6 hinges on foreign flows; analysts split on whether Samsung and SK hynix, said to be sold out of memory for three years, are insulated (see Markets). This is not investment advice.