Nasdaq posts biggest daily drop in 19 months on fears of AI regulations
By Noel Randewich and Utkarsh
Hathi
Thu November 5, 2026
On Wednesday, investors were elated by the Democrat victory, knowing that they’d be pushing for a slowdown in the AI buildout but also now thinking that might be a good thing. After all, Wall Street has been nervous for quite some time about the breakneck pace and huge expenses that could probably benefit from a pause. Thursday, they went 180 degrees in the opposite direction as if they suddenly woke up and asked themselves, “Why are we cheering? This rapid buildout is the main reason we’ve been doing so well. This is going to eat into our profits!” Thus, following one of the biggest surges in years on Wednesday, today we had one of the biggest slumps, in fact THE biggest one-day drop since the notorious “Liberation Day” April 2025.
The Dow closed an enormous 1800 down, 300 more than Wednesday’s huge gain, the Nasdaq losing all of the substantial post-election gains plus another 1,059. And the S&P crashed 3x what it gained Wednesday. As today’s expert put it, “Investors appear to be recognizing that some newly elected members of Congress are looking to slow the pace of AI.” (A little slow on the uptake, aren’t they? Have they not been listening to any news all year?) And then there’s the good news, “But I think the magnitude of the moves are outsized.” Yep, I’m sure they are. Coming Friday are non-farm payrolls, though in terms of inflation the markets are expecting another hike next month. With the enormous selloff, the S&P has now dropped to only a 7.4% gain for the year, the Nasdaq to only 4.6%, technically confirming a correction. Volume closed at a whopping 26.9 billion vs the 17.7 average. And this was NOT a triple-witching day!
DJ: 53,356.12 +1569.4 NAS: 25,736.51
+364.50 S&P: 7,688.62
+119.70 11/4
DJ: 51,523.06 -1833.06 NAS: 24,315.00
-1421.52 S&P: 7,353.73
-334.89 11/5
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