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TL;DR
The Nasdaq Composite fell 5.52% on Nov. 5, while the Nasdaq-100 dropped 6.36%; Reuters estimated the latter’s lost market value at about $2.5 trillion. Investors focused on whether election results could bring more oversight, higher costs or delays for planned AI data centers, but no new federal law has passed and the potential effects remain uncertain.
The Nasdaq Composite fell 5.52% on Thursday, Nov. 5, and the Nasdaq-100 lost 6.36%, in a selloff that Reuters valued at about $2.5 trillion in Nasdaq-100 market value. Investors were weighing whether the U.S. midterm election results could lead to tighter oversight, reduced tax incentives or higher power costs for planned AI data centers; those policy effects have not yet been established.
Nasdaq’s published closing data puts the Composite at 24,315.00, down 1,421.51 points. The Nasdaq-100 closed at 26,629.81, down 1,807.36 points. Reuters reported the estimated $2.5 trillion loss for the Nasdaq-100, which tracks 100 large non-financial companies listed on the exchange. The figure does not represent the value lost by every Nasdaq-listed stock.
The declines were sharpest among chipmakers and companies tied to data center construction. The PHLX Semiconductor index fell 12.25%; Reuters reported Nvidia shares dropped 9% and AMD fell 17%. Several data center operators also lost more than 14%, according to Reuters. The Nasdaq Composite closed 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.
The political concern centers on decisions that can affect construction costs and timelines: permits, grid connections, electricity rates and tax incentives. The source report says Democrats won control of Congress and flipped several governorships. Analysts cited by Reuters and The National expect the results could bring more scrutiny or pressure for developers to pay more of the costs associated with power and water. Those are expectations, not enacted policy.
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 Results Meet Data Center Costs
The selloff matters because AI investment depends on large, power-hungry data centers, and those facilities require lengthy approvals, substantial electricity supply and local infrastructure. If regulators or elected officials change the terms for permits, grid access or tax breaks, developers could face higher costs or slower construction. That could affect expected spending and growth across data center operators, utilities, chip suppliers and the large technology firms buying computing capacity.
But a market reaction is not proof that construction plans have changed. The source material reports no new federal law imposing limits or new charges. It also describes potential outcomes ranging from additional congressional hearings to state-level pauses. Investors were responding to perceived risks and forecasts; the scale, timing and practical effect of any policy changes remain unsettled.
For readers, the distinction is consequential: the losses reflect repricing of expectations, not a confirmed cancellation of AI projects or a measured decline in demand for AI services. A UBS estimate cited in the source material says about 30% of planned 2028 capacity additions could be at risk. That is an estimate about future capacity, not a government decision or a count of projects already halted.
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What the Election Changed
The drop followed a volatile stretch for technology shares, but it came after a mixed response to the election. On Wednesday, Nov. 4, the Nasdaq Composite rose 1.44%. Reuters reported that some data center operators and power companies fell that day while Amazon and Microsoft each gained about 6% during the session. One interpretation was that existing facilities might become more valuable if fewer new ones were built. On Thursday, that view gave way to broader selling, including declines in major technology companies.
The source report says Democrats took control of both chambers of Congress, giving them committee leadership from January and the ability to conduct hearings and investigations. It also cites The National’s reporting that Democrats won five governorships, including Texas, Georgia and Ohio, where substantial data center development is planned. The incoming Texas governor reportedly promised a moratorium on new data center construction, while incoming governors in Georgia and Ohio pledged pauses on large projects. These are campaign commitments reported by the source, not statewide policies already in force.
State and local decisions can matter because governors appoint utility regulators and states shape incentives for development. The source also reports that local voters considered data center measures in towns across ten states, with unofficial results going against projects in 46 of 47 measures counted. Those local results should not be confused with a nationwide ban, and their eventual legal and project-level effects are not specified.
““deepest one-day drop since ‘Liberation Day’ in April 2025.””
— Reuters, describing the market decline
Policy Risks Are Still Forecasts
It is not yet clear whether the election results will lead to specific federal legislation, new state rules or changes to existing project approvals. No new federal law has passed, and the source material notes that President Donald Trump retains veto power. Analysts cited in the report expect possible gridlock, which could limit sweeping federal changes.
The reported state pledges also need to be distinguished from enacted decisions. The available material does not establish which projects, if any, have been formally paused, how regulators may revise electricity or grid-connection rules, or whether developers will be required to absorb a larger share of power and water costs. The UBS estimate that 30% of planned 2028 capacity additions could be at risk is a forecast; its underlying assumptions and project-by-project implications are not detailed here.
The market figures describe one trading session. They do not establish that the election alone caused every share decline, or that AI demand has weakened. Reuters attributed the selloff to political concerns, but the source material provides no breakdown measuring how much of the drop came from each factor.
Watch Hearings, Permits and Grid Decisions
Congressional committee activity after the new members take office in January will show whether election results translate into hearings, investigations or proposals affecting AI infrastructure. At the state level, attention will turn to whether incoming governors pursue their reported commitments and whether utility regulators change rules for electricity prices, grid connections or project approvals.
Developers’ announcements and permitting records can help establish whether proposed projects are delayed, revised or canceled, rather than merely exposed to political risk. For markets, upcoming company guidance on capital spending and data center schedules may indicate whether firms expect costs or timelines to change. Until those decisions and disclosures arrive, the $2.5 trillion figure remains a measure of estimated market value lost in the session, not a tally of data center investment canceled.
Key Questions
What does the $2.5 trillion figure refer to?
Reuters estimated that about $2.5 trillion in market value was erased from the Nasdaq-100 during the selloff. It does not refer to every company listed on Nasdaq or to canceled data center spending.
How much did the Nasdaq indexes fall on Nov. 5?
The Nasdaq Composite fell 5.52% to 24,315.00, and the Nasdaq-100 fell 6.36% to 26,629.81, according to Nasdaq closing data cited in the source material.
Did the election already stop AI data center projects?
The source material does not confirm that projects have been stopped as a result of the election. It reports campaign pledges and investor concerns, but no new federal law and no project-by-project accounting of cancellations.
Why could state governments affect data center construction?
States can influence development through permitting, utility regulation, grid connections and tax incentives. Changes in those areas could affect construction costs and schedules, though the consequences of the reported election results remain uncertain.
Source: ThorstenMeyerAI.com
