Nasdaq 100 Plunges 6.36% as AI Selloff Spreads to Chips

The Nasdaq 100 fell 1,807.36 points, or 6.36%, to 26,629.81 on 5 November 2026, its worst session since 2020, as an AI and semiconductor liquidation spread into every major US index. The S&P 500 lost 4.35% to 7,353.85, the Russell 2000 dropped 4.45% to 2,729.84, and the Dow industrials shed 1,833.16 points to 51,528.16. Bitcoin traded at $75,883, down 5.59% over 24 hours, on $42.04B of volume and a $1.53T market cap as of 22:13 UTC today.

Context — Why the AI Trade Broke on 5 November

Wednesday's session had already rotated money out of AI names and into the broader market. Thursday turned that rotation into a broad selloff, with the Nasdaq 100 absorbing the heaviest damage while the Dow gave back more than it had gained the previous day.

The catalyst ran through the supply chain rather than the hyperscalers. Memory, storage, chip equipment and data-center suppliers led the decline, with Micron down roughly 12% during the session as investors questioned how quickly the AI buildout would convert into orders for component makers.

That question matters because the AI trade has been priced off capex announcements at the top of the chain. When the market starts discounting the pace at which that spending reaches memory and storage vendors, the companies furthest from the end customer reprice first and hardest.

Lower Treasury yields normally support long-duration growth equities. They did not on Thursday. The 2-year yield fell 11.45 basis points to 4.4665%, yet tech stocks and Bitcoin fell alongside risk assets, while gold caught a bid.

The macro backdrop includes a Bank of England rate hike to 4.00%, a rebound in crude, and US data that came in stronger than expected. None of that offset the AI unwind. For more on how index moves feed through to positioning, see fazen.markets indices coverage.

Data — What the Numbers Show

Every major US benchmark closed sharply lower, and the losses widened as you moved down the market-cap scale toward the most AI-levered names.

Index	Close	Change
Nasdaq 100	26,629.81	−6.36%
Nasdaq Composite	24,315.00	−5.52%
S&P 500	7,353.85	−4.35%
Russell 2000	2,729.84	−4.45%
Dow industrials	51,528.16	−3.44%

The Treasury curve steepened as the front end led. The 2-year yield fell 11.45 bps to 4.4665%, the 5-year dropped 7.82 bps to 4.6098%, the 10-year lost 5.12 bps to 4.8408%, and the 30-year slipped 2.19 bps to 5.2581%.

The size of the front-end move stood out because initial jobless claims came in at 189,000 against a 196,000 estimate, and third-quarter productivity rose 3.6% against 2.8% expected. Both prints argue against aggressive rate-cut pricing.

Within the Magnificent 7, all seven closed lower in the late-session check. Nvidia and Tesla underperformed both Nasdaq indices, while Apple and Alphabet held up best, down 1.27% and 1.53% respectively. Micron's roughly 12% decline was the sharpest single-name move cited.

WTI crude settled at $90.52, up $2.40 or 2.72%, and was quoted later at $91.06, up 3.34%. Spot gold rose 0.68% to $4,088.02. Silver fell 0.94% to $51.76 and copper dropped 3.51% to $6.2035. Bitcoin's 24-hour move left it at $75,883 with $42.04B in volume.

Analysis — Who Is Exposed and Where Flow Is Going

The second-order effect runs through the memory and storage complex. Micron's decline signals that the market is repricing the revenue timeline for component suppliers even as hyperscaler capex headlines remain intact. If that repricing holds, the pressure extends to chip equipment vendors and data-center infrastructure names that sit between the fab and the rack.

The counter-argument is that lower Treasury yields should eventually re-rate long-duration growth. The 2-year falling 11.45 bps while the Nasdaq 100 drops 6.36% is an unusual pairing. Either the yield move is a flight-to-quality response that will reverse once equities stabilise, or the market is pricing slower nominal growth, which is bearish for AI capex regardless of discount rates.

Positioning looks like forced de-risking rather than a rotation into defensives. The Russell 2000's 4.45% decline shows small caps were sold alongside megacaps, and Bitcoin's 5.69% drop late in the session confirms that risk-sensitive assets were liquidated together. Gold's 0.68% gain to $4,088.02 was the only clear haven bid.

Crude's 2.72% settlement gain adds a complication. Reports of fresh Gulf shipping incidents put supply risk back in focus after Wednesday's more than 8% drop on hopes for a path out of the Iran war. If oil stays bid while short-term yields stay under pressure, that divergence is worth tracking.

On the currency side, the Australian dollar took the biggest hit among majors, with AUDUSD down 1.13% to 0.6925, while the yen held up best, with USDJPY down 0.49% to 157.64. That is a classic risk-off signature. For cross-asset context, see fazen.markets forex coverage.

Outlook — What to Watch Next

The first question is whether buyers return to the chip and data-center names that led the market lower. Micron's roughly 12% intraday decline is the reference point for whether that group finds a floor.

Second, watch whether the 2-year yield holds onto its 11.45 bp decline. A reversal there would remove the one supportive factor for duration-sensitive equities.

Third, crude's rebound needs monitoring. If Gulf shipping risks keep WTI bid above its $90.52 settlement while short-term yields stay suppressed, the divergence between energy and rates becomes the dominant cross-asset signal.

The October non-farm payrolls report is the next scheduled macro catalyst. The Bank of England's hike to 4.00% sets up the question of whether Bailey follows through on his stated case for another 25 bps if the war does not end.

Frequently Asked Questions

What does the Nasdaq 100's 6.36% drop mean for retail investors?

It means the AI trade's most crowded expression repriced in a single session. The Nasdaq 100 closed at 26,629.81, down 1,807.36 points, with all seven Magnificent 7 names lower. Retail portfolios concentrated in AI suppliers felt more pain than broad-index holders, since the S&P 500 fell 4.35% and the Dow only 3.44%.

Why did Bitcoin fall 5.59% when Treasury yields dropped?

Bitcoin traded at $75,883 with $42.04B in 24-hour volume, down 5.59%, after rallying alongside stocks on Wednesday. It behaved like the Nasdaq rather than like gold, which rose 0.68% to $4,088.02. Lower yields did not provide support because the move was risk-off liquidation, not a rate-driven re-rating.

What is the Bank of England's rate path after the 4.00% hike?

The BoE raised its bank rate 25 bps to 4.00%, citing inflation pressure tied to the Middle East conflict and higher energy prices. Governor Bailey said there is a case for another 25 bps hike if the war does not end. Sterling still slipped against the dollar, with GBPUSD down 0.17% to 1.3448.

Bottom Line

The AI supply chain repriced hardest, and whether chip buyers return is the single signal that matters next.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. CFD trading carries high risk of capital loss.