Nasdaq slides into correction on AI fears after Democrats' midterm win
The gist
The Nasdaq Composite closed more than 11% below its record, entering correction territory after Democrats' midterm wins.
Investors fear the AI data-center buildout could slow, hitting the tech-heavy index hardest.
How it unfolded
- Oct 6, 2026The Nasdaq Composite hit its record close, from which it later lost nearly 12%.
- Oct 30, 2026The index tumbled more than 700 points amid tech-sector concerns; Intel fell nearly 29%, its biggest single-day drop since 1974, and Nvidia fell 4.2%.
- Nov 5, 2026After Democrats' midterm wins, the Nasdaq Composite fell 5.5%, its deepest one-day drop since April 2025, and closed more than 11% below its record in correction territory; the Nasdaq 100 fell 6.4%, erasing $2.5 trillion in market value.
Key terms
- correction
- A stock index decline of more than 10% from its recent high, typically shorter and sharper than a bear market.
- Nasdaq Composite
- A US stock market index that includes almost all stocks listed on the Nasdaq exchange.
Source: Wikipedia