U.S. stocks recorded sharp losses yesterday (November 5, 2026), as major technology companies came under significant pressure and approximately $2.5 trillion was wiped off the market capitalization of companies in the Nasdaq 100 index, which includes 100 of the largest companies listed on the technology-focused Nasdaq stock exchange. The sell-off also affected global markets, raising concerns about the outlook for the technology sector.
The Nasdaq Composite, the broader Nasdaq stock index, fell 5.52%, marking its largest daily decline since April 2025. Nvidia shares dropped 9.3% and Tesla shares fell approximately 11%, while the broader S&P 500 index declined 4.36%.
According to Reuters, the decline was linked to a combination of political and economic factors that have increased uncertainty surrounding investment in artificial intelligence.
The expansion of data centers has faced opposition from local communities, mainly due to their high electricity and water consumption.
Recent Democratic election victories in the U.S. have raised concerns that tighter restrictions could be imposed on the construction of new data centers.
The expansion of these facilities has faced opposition from local communities, mainly due to their high electricity and water consumption. According to UBS estimates, approximately 30% of the capacity of new data centers planned for construction in the U.S. in 2028 could be affected by potential construction moratoriums.
Meanwhile, high borrowing costs are making it more difficult to finance new projects, particularly for smaller companies. Investors are also questioning whether the substantial spending on AI infrastructure will generate corresponding profits.
Source: Reuters
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