Nasdaq enters correction as US stocks shed 1,833 points on AI fears
US stocks posted their worst day since April 2025, wiping close to USD 900 billion off tech giants and sending gold to its highest level in two weeks.
What happened1/6 Nasdaq drops 5.52% into correction territory
On Thursday 5 November 2026, the Nasdaq Composite fell 5.52% to close at 24,315.00, sliding more than 10% below a record set the previous month. That crossed the threshold analysts call a "correction."
The Dow Jones Industrial Average shed 1,833.06 points (3.44%) to settle at 51,523.06. The S&P 500 dropped 4.36% to 7,353.73. The small-cap Russell 2000 fell 4.45% and also entered correction.
All three major US averages posted their worst single day since April 2025. The sell-off erased the sharp gains from the postelection rally seen just one day earlier.
The real numbers2/6 Chip stocks had their worst day since March 2020
1,833 ptsDow drop in one dayUSD 900 bilMag7 market value wiped28.09VIX peak, highest since Mar 2026The iShares Semiconductor ETF (SOXX) fell more than 12%, its worst day since the pandemic crash of March 2020. Broadcom dropped 10%, Nvidia 9%, Qualcomm 9%, and Oracle nearly 7%.
The Magnificent 7 tech stocks lost close to USD 900 billion in aggregate market value heading into the final hour of trading.
Stock / Index Move Nasdaq Composite -5.52% S&P 500 -4.36% Dow Jones -3.44% (-1,833 pts) SOXX (chip ETF) -12%+ Nvidia -9% (-USD 374 bil) Tesla -USD 161 bil Microsoft -USD 117 bil 1,833 pts 01/03Dow drop in one day Chip stocks had their worst day since March 2020 Dow drop in one day
Why it matters3/6 Midterm election fears hit the AI buildout trade
The trigger was not a single earnings miss. Investors feared that a Democratic sweep of both chambers of Congress in the US midterm elections could slow the data-center buildout that has powered chip and cloud stocks for three years.
Sen. Bernie Sanders of Vermont called for a national data-center moratorium, writing on X that "Americans don't want Big Tech oligarchs wrecking the environment, gutting jobs and threatening humanity's future."
The selling spread beyond tech. All 11 S&P 500 sectors traded negative. Information Technology was the biggest laggard at -6.6%. Caterpillar fell 6%, JPMorgan 4%, Boeing and Nike 2%. The Nasdaq also closed below its 200-day moving average for the first time since April 2026.
How it affects your wallet4/6 What a 5% US sell-off means for a Malaysian wallet
If you hold a global or US-focused unit trust through a local bank, ASB, or an online platform, the net asset value you see on Monday morning will reflect Thursday's drop. e.g. a fund with 60% US tech exposure could show a NAV dip of roughly 3% for the day, though the exact figure depends on the fund's holdings and currency hedging.
EPF (KWSP) invests a portion of its portfolio overseas, including US equities. A single day's move in the S&P 500 does not change your EPF statement: dividends are announced once a year and the fund's value is marked across thousands of holdings. Your EPF account is not affected by one bad day on Wall Street.
On the safe-haven side, gold futures touched USD 4,155.80/oz and silver reached USD 53.49, both on pace for their best week since August 2026. Gold was up more than 5% for the week, silver more than 6%. If you buy physical gold or hold a gold ETF in Malaysia, that weekly move is the number to watch, not the daily swing.
Mag7 market value wiped USD 900 bil 02/03Chip stocks had their worst day since March 2020 Mag7 market value wiped
What to watch5/6 Fed rate decision on 9 December is the next date
The sell-off eased pressure on the Federal Reserve to hike rates. Odds of a quarter-point hike at the 9 December 2026 meeting fell to 70.1% from 82.7% on Wednesday, per the CME FedWatch tool. The Fed's current range is 3.75%-4.00%.
A hold would mean no fresh upward pressure on global borrowing costs, which matters for Malaysian ringgit strength, fixed-deposit rates and the cost of foreign-currency loans.
NYSE circuit breakers were not triggered. The S&P 500 bottomed at -4.23% intraday, well short of the 7% Level 1 threshold that would halt trading for 15 minutes.
Worth knowing6/6 US jobless claims sit at the lowest level since 1969
One counterpoint to the fear: US initial jobless claims fell to 189,000 for the week ended 31 October 2026, tying the lowest reading since July and the bottom of a series going back to September 1969. The labour market has not cracked alongside the equity sell-off.
- 03/03
Chip stocks had their worst day since March 2020 ***Your receipt ***Nasdaq Composite -5.52% S&P 500 -4.36% Dow Jones -3.44% (-1,833 pts) SOXX (chip ETF) -12%+ Nvidia -9% (-USD 374 bil) Tesla -USD 161 bil ringgit2u.com ·Today
Questions people ask
What does "correction" mean in the stock market?
A correction is a decline of 10% or more from a recent high. It is a normal part of market cycles. The Nasdaq entered correction on 5 November 2026 after falling more than 10% below a record set in October 2026.
Will my EPF savings drop because of this US crash?
EPF invests across thousands of assets worldwide. A single day's move in US tech stocks does not change your EPF statement. EPF dividends are announced once a year and reflect the fund's entire portfolio, not one market's daily price.
Are NYSE circuit breakers triggered at this level of selling?
No. The S&P 500 bottomed at -4.23% intraday on 5 November. Level 1 circuit breakers require a 7% drop and only apply between 9:30 am and 3:25 pm ET. The last time they were used was four times in March 2020.
