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TL;DR
The Nasdaq Composite fell 5.52% on Nov. 5, its steepest single-session decline since April 2025, while the Nasdaq-100 dropped 6.36%. Election results prompted investor concerns about possible limits, added costs and delays for AI data center projects, but no new federal law has been passed and much of the projected impact remains uncertain.
The Nasdaq Composite fell 5.52% on Thursday, Nov. 5, its largest one-day decline since April 2025, as investors reassessed the outlook for AI data center construction after Democrats won control of Congress and several governorships. Nasdaq’s published data shows the index closed at 24,315.00; the political results have raised concerns about permits, electricity costs and tax incentives, but no new federal restrictions have been enacted.
The Nasdaq-100, which tracks 100 of the exchange’s largest non-financial companies, fell 6.36% to 26,629.81. Reuters estimated that the decline erased about $2.5 trillion in market value from those companies. That figure applies to the Nasdaq-100, not to every company listed on Nasdaq. The semiconductor index fell 12.25%, while Reuters reported declines of 9% for Nvidia and 17% for AMD.
The selloff extended beyond chipmakers. Reuters reported that several data center operators dropped by more than 14%, while Amazon and Alphabet fell 2.2% and Microsoft lost 3.6%. The Composite ended 11.9% below its Oct. 6 record, putting it in correction territory, commonly defined as a decline of at least 10% from a recent peak. Reuters also reported that the VIX, a measure of expected market volatility, had its largest increase since December 2024.
The political concern is that incoming officials could make new projects harder or more expensive to build through oversight, permitting decisions, utility regulation or changes to incentives. The source material reports that Democrats won control of both chambers of Congress and flipped several governorships. Those results could alter the scrutiny and local conditions facing developers, but their effects on particular projects have not been established.
Infographic 01 · The day in numbers
The Nasdaq's worst day in 19 months
Chips and data center builders led the fall. The dollar figure in the headlines belongs to the Nasdaq-100, the 100 largest non-financial companies on the exchange.
Nasdaq Composite on Thursday, 5 November 2026: down 1,421.51 points to 24,315.00. The biggest one-day fall since 4 April 2025, 19 months earlier.
The five worst Composite days since March 2025
Daily change, closing values
Sources: Nasdaq Global Indexes (COMP, NDX, SOX closing data, retrieved 6 Nov 2026) · Reuters, 5 Nov 2026 (via The Straits Times). History checked back to 25 Mar 2025. Market value is Reuters’ calculation. Not investment advice.
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Election Risks Reach Data Center Plans
The market reaction signals that investors are treating political risk as part of the AI infrastructure outlook, alongside financing, electricity supply and demand for computing. Data centers require large amounts of power and water, grid connections and local approvals. If projects face delays or developers must pay more for infrastructure, the cost and timing of expanding capacity could change.
That matters to technology companies building AI services, utilities planning new generation and transmission, and communities weighing the effects of large facilities. The selloff does not establish that construction will stop or that AI demand has weakened. Rather, it reflects a reassessment of the likelihood and potential cost of future projects. A UBS estimate cited in the source material said about 30% of planned 2028 capacity additions could be at risk; that is a forecast, not a government decision or confirmed cancellation.
For investors, the sharp declines show how quickly expectations about long-term infrastructure can affect technology valuations. For businesses and local governments, the practical question is whether new oversight or changes to incentives translate into slower approvals, different power costs or altered project plans. Those outcomes remain unresolved.
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From Election Results to Market Concerns
The decline followed a more mixed session on Wednesday, Nov. 4, when the Composite rose 1.44%. Reuters reported that some data center operators and power companies fell that day even as Amazon and Microsoft rose about 6% during the session. One market interpretation was that existing facilities might benefit if fewer new ones were built; Thursday’s broader decline suggested investors were also reassessing the exposure of major technology companies.
Nasdaq’s historical closing figures put Thursday’s 5.52% drop below only the 5.82% decline recorded on April 4, 2025, during the tariff shock, for the period covered in the source material. The Composite had also fallen 5.3% in October, and Thursday was its fifth daily loss of more than 500 points since mid-October. The figures describe a volatile market, but do not by themselves establish that election results caused every part of the decline.
The source material attributes the data center concern to reported election outcomes and possible policy changes. It says incoming governors in Texas, Georgia and Ohio have promised pauses on large projects or a moratorium, and describes local ballot measures in several states opposing data center development. Those reported pledges and unofficial local results are not the same as enacted statewide rules. Governors can influence utility regulators and state incentives, while federal action would require further political and legislative steps.
““deepest one-day drop since ‘Liberation Day’ in April 2025.””
— Reuters, describing Thursday’s market move
Policy Changes Are Not Yet Settled
No new federal law restricting data center construction has passed, and the scope or timing of any congressional action is unknown. The source material says President Trump retains veto power and that some analysts expect political gridlock rather than broad policy changes. Additional hearings or investigations, if held, would not by themselves establish new limits on construction.
It is also unclear which state pledges will become binding rules, how local measures will be implemented, or whether individual projects will be delayed, redesigned or canceled. The reported figure that 37% of planned U.S. data center capacity is in states that changed governors is based on The National’s analysis of Cleanview project data; it measures planned capacity, not facilities already built or projects confirmed to be at risk. Market movements likewise cannot identify how much of Thursday’s decline was attributable to election-related concerns rather than other factors.
Permits and State Policies Ahead
Investors and developers will be watching for the incoming Congress’s oversight agenda and for state officials to clarify whether campaign pledges will become executive actions, legislation or formal pauses. Utility regulators’ decisions on grid connections and electricity costs, along with state tax-incentive policies and local permitting processes, will help determine whether concerns lead to measurable changes in project schedules or budgets.
For now, the next meaningful evidence will be specific policy proposals and decisions, not estimates of potential capacity at risk. Companies may also provide more detail about project timing, power requirements and spending in future disclosures. Until those developments are clearer, the market’s repricing reflects perceived risk rather than a confirmed halt to the AI data center build-out.
Key Questions
How much did the Nasdaq Composite fall?
It closed at 24,315.00 on Nov. 5, down 1,421.51 points, or 5.52%, according to Nasdaq data.
What does the $2.5 trillion figure refer to?
Reuters attributed that estimate to the decline in market value of the Nasdaq-100, not every stock listed on Nasdaq.
Did the election results lead to a federal ban on data centers?
No. The source material says no new federal law restricting data center construction has passed. The reported concerns involve possible future oversight and state or local policy changes.
Are 30% of planned 2028 data center additions confirmed at risk?
No. The 30% figure is a UBS estimate cited in the source material. It is not a confirmed count of canceled projects or an official government assessment.
Source: ThorstenMeyerAI.com
