The S&P 500 sell-off accelerated on Thursday, November 5, as AI-linked and semiconductor shares dragged US markets lower. The index fell 4.4%, its steepest one-day loss since the April 2025 “Liberation Day” tariff shock, according to an updated Associated Press report. The drop came a day after Trump celebrated market gains.
Market-wide circuit breakers drew attention, but the reports provided do not say a trading halt was triggered. Reports cited chip-sector weakness, uncertainty about future AI infrastructure spending and election-related concerns as factors weighing on sentiment.
Key Takeaways
- The S&P 500 fell 4.4% on November 5, according to the Associated Press, giving back more than the prior day’s gain.
- Early coverage put the index’s decline at 3.8%, bringing the 7% circuit-breaker threshold into focus. No halt was reported.
- Reuters linked the sell-off to weak semiconductor shares, a Qualcomm sales miss and uncertainty about AI investment.
- Bitcoin and other major cryptocurrencies were also lower in the evening UTC market-data snapshot.
What happened in the S&P 500 sell-off
On Wednesday, November 4, the S&P 500 climbed 1.6% to 7,688.62. The Dow gained 1,569.40 points to 53,356.12, and the Nasdaq rose 1.4% to 25,736.51, the Associated Press reported. Its recap described sharp gains, not new records.
Decrypt reported that Trump celebrated market highs less than 24 hours before Thursday’s losses, touting Americans’ retirement accounts as going “through the roof.” The contrast was stark, but the AP’s Wednesday recap confirms gains without independently describing them as records.
Thursday’s losses deepened as the session progressed. Decrypt’s earlier report put the S&P 500 down 3.8% and said a fall to 7,150.41 would reach the first market-wide circuit-breaker level. The AP later reported a 4.4% decline, with the Dow down more than 1,800 points and the Nasdaq off 5.5%. These are snapshots from the same session, not evidence that a circuit breaker was activated.
Background and context behind the S&P 500 sell-off
Technology and chip stocks led the pressure. Reuters, in a report carried by Euronext, said Qualcomm’s smartphone-chip sales missed estimates. The Philadelphia Semiconductor Index fell 9%, while Qualcomm shares dropped 9%. Reuters also cited concern that a Democrat-controlled Congress could slow AI infrastructure investment.
Nationwide chief strategist Mark Hackett told Reuters that disappointing earnings and the election result were “pressing sentiment.” A separate Reuters report carried by Investing.com said the semiconductor index fell as much as 11% intraday. It described recurring AI-sector sell-offs since the Nasdaq’s October 6 record close and cited reduced financing access for some data-center developers and ballot initiatives that could limit future construction.
The reports point to concerns about semiconductor performance, AI infrastructure spending and financing, as well as election-related uncertainty. They do not establish how much each factor contributed to the market decline.
Market reaction across stocks and crypto
The losses extended beyond the S&P 500. The Nasdaq fell 5.5% and the Dow lost more than 1,800 points, according to the AP’s updated report. Reuters reported a 9% decline in the Philadelphia Semiconductor Index and an intraday fall of as much as 11%, using different measures of the chip-sector drop.
CoinGecko data timestamped 21:13 UTC on November 5 showed bitcoin down 5.36% over 24 hours and ether down 7.74%. This snapshot records declines in both crypto assets, but does not show that stock losses caused them or indicate what prices will do next.
| Market measure | Reported move | Data timing |
|---|---|---|
| S&P 500 | Down 4.4% | Thursday, November 5, AP updated report |
| Nasdaq | Down 5.5% | Thursday, November 5, AP updated report |
| Philadelphia Semiconductor Index | Down 9% | Thursday, November 5, Reuters report |
| Bitcoin | $75,922, down 5.36% over 24 hours | November 5, 21:13 UTC |
| Ether | $2,237.21, down 7.74% over 24 hours | November 5, 21:13 UTC |
What to watch next
NYSE rules set market-wide circuit-breaker triggers at S&P 500 declines of 7%, 13% and 20% from the previous close. The first two levels halt trading for at least 15 minutes; a Level 3 breach stops trading for the rest of the day, according to the NYSE’s circuit-breaker FAQ. Both the 3.8% early figure reported by Decrypt and the AP’s later 4.4% figure were below the first threshold.
Reuters raised questions about chip weakness, data-center financing and expectations for AI spending, but the reports do not settle what will drive future market moves.
The Bureau of Labor Statistics scheduled its October Employment Situation report for Friday, November 6, at 8:30 a.m. Eastern. The release is a near-term economic event following the sell-off, but the reports provided do not predict the market response.
FAQ
What factors did reports cite in the S&P 500 sell-off on November 5?
Reuters cited semiconductor weakness, a Qualcomm smartphone-chip sales miss, concerns about future AI infrastructure investment and election-related uncertainty. The reports do not assign a precise share of the decline to each factor.
Did the S&P 500 trigger a circuit breaker?
No trading halt was reported. The index was down 3.8% in Decrypt’s earlier account and 4.4% in the AP’s updated report, both below the NYSE’s 7% first trigger measured against the previous close.
What is the next major event for markets?
The BLS scheduled its October Employment Situation report for November 6, 2026, at 8:30 a.m. Eastern. Reuters also reported concerns about chip-sector performance and AI infrastructure investment, but the evidence does not establish how markets will respond.
Sources
- Market-Wide Circuit Breakers FAQ (www.nyse.com)
- S&P 500 Plunges, Wall Street Fears Circuit Breaker, Just One Day After Trump Celebrated Record Highs (Decrypt)
- A brutal sell-off for AI stocks sends Wall Street reeling, and the S&P 500 tumbles 4.4% (apnews.com)
This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrencies are highly volatile; always do your own research before investing.
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