Daily newsletter · Fri 6 Nov 2026
The AI trade came apart and pushed the NASDAQ Composite into a correction
The NASDAQ Composite closed at 24,315.00 on Thursday, down 1,421.52 points. That is 11.9% below the record close of 27,599.89 it set on 6 October. A fall of 10% from a record is what the market calls a correction.
So why turn on a result the market cheered on Wednesday? Wednesday read a Democratic Congress as gridlock, and gridlock as a brake on policy. Thursday read it as closer scrutiny of every new data centre, and the chip companies are the ones selling into that buildout.
The selling concentrated in the chipmakers. Nvidia fell 9.26% to US$181.60 and Micron 17.46% to US$656.39. AMD lost about 15%. The PHLX Semiconductor Index, which tracks the sector, fell 12%.
Nvidia has now given back its whole year. It closed 2025 at US$186.50, and Thursday left it about 3% below that level.
Not everything fell. Brent crude rose about 3% to just over US$97 a barrel, clawing back part of the slide it took when Iran and the United States began talking on Monday.
nothing about AI demand changed on Thursday. What changed is the price the market will pay for a buildout that local voters can now slow down. Our read is that Nvidia's order book on 17 November settles more of this than any ballot measure.
More in
All stories →- Thursday 5 November Markets rallied on the prospect of nothing much getting done
- Monday 19 October Seven of the S&P 500's 11 sectors rose last week, and the index still fell 1.95%
General information and commentary only, not financial advice. It does not take account of your objectives, financial situation or needs, and reflects the author's own reading of public information at the time of writing, which may be wrong. Sharespective, its people and its clients may hold positions in the companies covered. Do your own research and talk to a licensed adviser.