Update: Nasdaq Enters Correction Territory, Dow Erases Post-Election Rally Amid Big-Tech Rout

02:19 PM EST, 11/05/2026 (MT Newswires) -- (Updates with index/price moves, macroeconomic data and company/geopolitical news from the first paragraph.) US equity indexes were in meltdown after midday Thursday, with the Nasdaq Composite plunging into correction territory and the Dow Jones Industrial Average erasing Wednesday's rally of more than 1500 points amid a rout in mega-cap chipmakers. The tech-heavy Nasdaq Composite plunged 4.7% to 24,532.3 as investors expect a slowdown in the data centre buildout after Democrats took both chambers of Congress in midterm elections. Intraday, Nasdaq is down more than 10% from early October, meeting the textbook definition of a correction. The S&P 500 sank 3.6% to 7,409.2, and the Dow Jones Industrial Average slumped 2.9% to 51,820.5 intraday. The Dow closed at 53,356.12 on Wednesday, up about 1,570 points from the previous session. All sectors fell after midday Thursday. Technology slumped 6.1%, consumer discretionary slid 3.8%, and industrials dropped 3.6%. The CBOE Volatility index, VIX, soared 61% to 26.72, the highest since March. Of the 20 worst-performing stocks intraday with market capitalization exceeding $200 billion each, 17 were technology companies, according to Finviz-compiled data. Advanced Micro Devices (AMD) led decliners, down 15.3%. Of the tech giants, more than half were either semiconductor manufacturers or providers of semiconductor equipment and materials. The list of worst performers also included software infrastructure plays such as CrowdStrike (CRWD) and Palantir Technologies (PLTR), down 9.5% and 10%, respectively. The iShares PHLX Semiconductor Exchange Traded Fund, which has about $48.67 billion in assets under management, dipped 10.7%, reflecting heavy selling in AI industry-related names. Most US Treasury yields fell, partly reflecting the AI trade bailout. The two-year dropped 10.6 basis points to 4.48%. The 10-year retreated 6.1 basis points to 4.83%, and the 30-year slid three basis points to 5.25%. Goldman Sachs (GS) and Apollo Global Management (APO) are seeking investors to syndicate portions of a $40 billion financing for SpaceX's (SPCX) Nvidia (NVDA) GPU purchases, Bloomberg reported Wednesday. SpaceX fell 8% intraday, extending Wednesday's losses. Tesla (TSLA), also an Elon Musk company, slid 11% by Thursday afternoon, building on the previous session's declines when Democrats won Congress and flipped Senate and governor's races in Texas. The change in ruby-red Texas' political landscape could have policy implications for Musk's businesses. US initial jobless claims fell sequentially to 189,000 in the week ended Oct. 31 from an upwardly revised 195,000, compared with expectations for an increase to 196,000 in a Bloomberg-compiled survey. The four-week moving average decreased by 2,250 to 194,750. Meanwhile, nonfarm productivity rose 3.6% in Q3 after a revised 2.1% gain in Q2, data released by the Bureau of Labor Statistics showed, above the 2.7% growth expected in a Bloomberg-compiled poll. Iranian Foreign Minister Abbas Araghchi held separate calls with his counterparts in Saudi Arabia, Oman and Qatar amid mounting fears of a US attack, Al Jazeera reported Thursday. The front-month West Texas Intermediate crude oil contract jumped 2.1% to $90.01 per barrel, and global benchmark Brent climbed 3.3% to $97.77 per barrel. Gold futures rose 1% to $4,115.10, and silver futures edged up 0.4% to $52.47.