S&P 500 falls 4.4% as tech and chip stocks sell off after midterms
The gist
The S&P 500 fell 4.4% on Nov 5, its worst session since March 2020, as chip stocks slid.
The drop followed Democrats' midterm sweep, with AI-regulation fears hitting tech.
How it unfolded
- Nov 2, 2026BlackRock Investment Institute says it downgraded US equities to neutral last month, noting the earnings growth gap has flipped for the first time since 2022, with the S&P 493 outpacing the 'magnificent seven' at roughly 29% versus 18%.
- Nov 4, 2026The S&P 500 posts its biggest one-day percentage gain in three months as easing political uncertainty boosts risk appetite after the Democrats' sweeping midterm victory; Brent crude falls more than 8%.
- Nov 5, 2026The S&P 500 falls 4.4%, its worst session since March 2020; the Nasdaq 100 sinks 6.4%, wiping out $2.3 trillion in value, and a key gauge of chip giants tumbles 12%.
Key terms
- S&P 500
- A stock market index tracking the performance of 500 large US companies listed on American exchanges.
- midterm sweep
- US general elections held near the midpoint of a president's four-year term, when all House seats and about a third of Senate seats are contested.
Source: Wikipedia