Nasdaq 100 Slumps 6.36% in Worst Day Since 2020

The Nasdaq 100 fell 6.36% on Thursday, its worst day since 2020, as investors sold memory and storage stocks, chip equipment makers and data-center suppliers. The Nasdaq Composite dropped 5.52%, the S&P 500 lost 4.35%, and the Dow Jones Industrial Average shed 1,833 points. All three closed at their weakest levels since April 2025. The Russell 2000 fell 4.45%. Every one of the 30 Dow components finished lower, and selling that began in the AI trade spread well beyond it by the close.

Context — why the AI trade cracked now

The selloff landed one day after the Dow surged nearly 1,600 points. Thursday's session erased that entire gain and more, a round trip that shows how quickly positioning in AI-linked names can unwind.

Investors are still weighing what the midterm results could mean for the pace of the AI data-center buildout. That question now sits at the center of how the market prices the chip and power complex.

Treasury yields moved lower and gold caught a bid as stocks sold off. Lower yields can help growth stocks, but the move came alongside a broad shift away from risk, so it offered little relief to tech.

For investors tracking index-level moves on Fazen Markets, the scale matters. The Nasdaq Composite went into the session up about 10.7% for the year and came out up just 4.6%. The S&P 500's gain narrowed from about 12.3% to 7.4%. A single session cut roughly six percentage points from the Nasdaq Composite's 2026 return.

Data — what the numbers show

Every major U.S. index is still positive for 2026 after the November 5 selloff. The Russell 2000 is the only one still up double digits, while the Nasdaq Composite has the smallest gain. Price returns are measured from the December 31, 2025 close.

Index	Close	Daily 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 Jones Industrial Average	51,528.16	−3.44%

Breadth confirmed the damage. S&P 500 decliners outnumbered advancers 411 to 75. Across the Nasdaq, 2,822 stocks fell and 463 rose, a little more than six decliners for every advancer. On the NYSE Composite, 1,512 stocks fell and 288 rose.

The watchlist showed 22 individual stocks down at least 10%, plus the VanEck Semiconductor ETF at −11.21%. Sandisk led at −22.26%, with Micron Technology at −17.46% and Western Digital at −17.35%.

Analysis — where the damage concentrated

The declines ran through nearly every part of the chip and data-center supply chain. Chip designers and manufacturers included AMD (−17.26%), Arm Holdings (−13.08%), Taiwan Semiconductor (−10.78%), Texas Instruments (−10.70%), Broadcom (−10.43%), Intel (−10.33%) and Monolithic Power Systems (−10.28%).

Networking, connectivity and optics names fell hard too: Astera Labs (−19.62%), Lumentum (−18.68%), Credo Technology (−17.71%), Marvell Technology (−16.43%), Coherent (−12.98%) and Arista Networks (−10.82%). Semiconductor equipment and components included Lam Research (−16.36%), Applied Materials (−13.58%), SkyWater Technology (−13.40%) and KLA (−13.35%). Data-center compute and power names Nebius Group (−14.95%) and Bloom Energy (−16.41%) also dropped.

All seven Magnificent Seven stocks fell, but the spread was wide. Tesla (−10.77%) and Nvidia (−9.26%) were the only two to fall more than the S&P 500, the Nasdaq Composite and the Nasdaq 100. Apple held up best at −1.53%, followed by Amazon (−2.19%) and Alphabet (−2.20%).

The counter-argument is that the YTD scorecard still shows a cushion for many of these names. SanDisk fell more than 20% on the day and was still up more than 200% for the year. Micron and AMD each fell about 17%, yet both held substantial YTD gains. Nvidia and Broadcom were already negative for the year by the close. Meanwhile, Intuit is down about 46% and Oracle off 41%.

Outlook — what to watch next

Sellers have control heading into the next session. The first test on a bounce is whether it holds and whether more stocks participate. A few megacaps can lift an index early even while most stocks are still falling.

Breadth is the key gauge. If the chip stocks that led the decline start to hold their rebounds and the advance-decline line improves, buyers have more evidence the selling is easing. If those stocks give back gains and breadth stays weak, the burden remains on buyers.

Tesla and Nvidia are the two megacaps to watch on the next bounce. If buyers step in and those two hold their gains, it would be an early sign that selling pressure is easing in the hardest-hit megacaps.

The report does not give specific support or resistance levels for the indices, and no upcoming catalyst dates are disclosed beyond the midterm results already being weighed.

Frequently Asked Questions

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

A 6.36% single-day decline in the Nasdaq 100 is the index's worst since 2020. For investors holding broad tech exposure, the drop cuts into 2026 gains but does not erase them: the Nasdaq Composite is still up 4.6% year to date. The move was broad, with 2,822 Nasdaq stocks falling versus 463 rising, so diversification within tech offered limited protection on the day.

Why did semiconductor and AI stocks fall harder than the broader market?

The selling was most intense in the AI trade, from memory and storage to chip equipment and data-center suppliers. Sandisk fell 22.26%, Micron 17.46% and AMD 17.26%, all worse than the S&P 500's 4.35% decline. Investors are weighing what the midterm results could mean for the pace of the AI data-center buildout, which directly affects demand expectations for these names.

What happens next for Nvidia and Tesla after Thursday's selloff?

Nvidia fell 9.26% to $181.60 and Tesla dropped 10.77% to $343.69, the only two Magnificent Seven stocks to fall more than all three major indices. The report flags both as the megacaps to watch on the next bounce. If buyers step in and those two hold their gains, it would be an early sign that selling pressure is easing in the hardest-hit megacaps.

Bottom Line

The AI trade's sharpest names led a broad selloff that left every Dow stock lower and put the burden on buyers heading into the next session.

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