# Nasdaq Plunges 7% in Tech-Led Market Meltdown

> Wall Street tumbled as tech and AI stocks triggered a deep Nasdaq selloff following Democratic midterm gains.

Source: Summit Capital News — https://summitcapnews.com/article/nasdaq-plunges-7-in-tech-led-market-meltdown
By Lead Macro Strategist · Published 2026-11-05T22:37:44.233+00:00 · Updated 2026-11-05T22:37:44.897412+00:00

Today's historic sell-off with the NASDAQ down 7% on the day could have been the reality kicking in of the amount of capital concentrated in the big AI bet now being in a position where it could have the brakes applied by the left-leaning Democratic Party, although it was not just AI stocks that sold but the S&P 500 sold off throughout sectors of the economy. The Bank of England hiked interest rates today to raise to 4% to commit to their goal of bringing down inflation for the British people. All eyes tomorrow are on the NFP non-farm payrolls U.S. labor market data.

## Tech Stocks Meltdown Triggers Market Correction

U.S. equities plummeted in a broad market meltdown driven by a severe unwind in technology and artificial intelligence stocks. The Dow Jones Industrial Average dropped 3.45 percent while the Nasdaq faced its largest one-day decline in nineteen months, confirming a market correction. Political pressure mounted as top Democrats called for a national data center moratorium following midterm election sweeps, accelerating fears of tighter sector regulation.

Semiconductor and mega-cap names led the rout, with Advanced Micro Devices sliding 15 percent and Oracle dropping 9.3 percent amid funding and growth concerns. Tesla and SpaceX deepened losses, contributing to a combined 450-billion-dollar two-day wipeout. The volatility spilled into institutional finance as hedge fund Walleye returned capital and terminated its head of equities following its worst month since the pandemic.

## Crude Oil Rebounds as Central Banks Diverge

Crude oil rebounded sharply following a midweek slump, anchored by strong corporate earnings as ConocoPhillips doubled its quarterly profit to four billion dollars. In central banking, Mexico trimmed its benchmark rate to 6.25 percent, while inflation fears dampened rate-cut expectations in Brazil. Traders now turn their attention to Friday for the October jobs report and unemployment rate print.

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Cite as: "Nasdaq Plunges 7% in Tech-Led Market Meltdown", Summit Capital News, https://summitcapnews.com/article/nasdaq-plunges-7-in-tech-led-market-meltdown