This Week in One Line On Thursday, Nov. 5, AI and chip stocks sold off across the board: the Philadelphia Semiconductor Index fell 12.25% in a single session and the Nasdaq Composite dropped 5.52%,This Week in One Line On Thursday, Nov. 5, AI and chip stocks sold off across the board: the Philadelphia Semiconductor Index fell 12.25% in a single session and the Nasdaq Composite dropped 5.52%,
Learn/Daily & Weekly Reports/US Stocks Weekly/US Stocks Weekly on November.2-5 | Chip Index Drops Over 12% in a Day, Nasdaq Enters Correction
US Stocks Weekly on November.2-5 | Chip Index Drops Over 12% in a Day, Nasdaq Enters Correction
This Week in One Line
On Thursday, Nov. 5, AI and chip stocks sold off across the board: the Philadelphia Semiconductor Index fell 12.25% in a single session and the Nasdaq Composite dropped 5.52%, closing in correction territory and wiping out the gains of the week's first three trading days. Japanese investment bank Nomura says the selling was mainly a positioning unwind, with hedge funds rushing to lock in this year's profits, rather than a sudden break in fundamentals.
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US Market Performance This Week
Index | 11/5 close | Wk | Thursday | YTD |
S&P 500 | 7,353.73 | −2.99% | −4.36% | +7.4% |
Nasdaq Composite | 24,315.00 | −4.41% | −5.52% | +4.6% |
Dow Jones Industrial Average | 51,523.06 | −0.48% | −3.44% | +7.2% |
Philadelphia Semiconductor Index | 9,011.14 | — | −12.25% | — |
The week played out as three small up days and one big down day. Over the first three sessions the S&P 500 gained 1.43% and the Nasdaq 1.18%, led by Wednesday's (11/4) post-midterm rally, when the Dow rose 3.03%. Thursday reversed sharply: the S&P 500 lost 4.36% and the Nasdaq 5.52%, closing in correction territory.
Fear gauges jumped with it. The VIX closed at 28.18 on Thursday, up about 70% in a day, while the 10-year Treasury yield ended at 4.837%, down about 5.7 basis points as money moved to safety.
Macro and Institutional Views
Two explanations are being offered for the selloff.
The first is positioning. Nomura's Charlie McElligott says the main catalyst was hedge funds rushing to lock in 2026 gains, describing it as "shooting the generals": selling first the biggest, most crowded winners of the year. On this reading, a fast price drop does not mean the fundamentals have worsened.
The second is policy. Investors worry that a Democratic-led government after the midterms could tighten AI regulation and slow data center construction, a concern that weighed on chips, cloud names and AI software at the same time.
Longer-term institutional views remain split. Goldman Sachs Asset Management's Nov. 5 market view says 2026 earnings growth has been very strong, helped by AI investment, and expects it to slow in 2027. Morgan Stanley chief US equity strategist Wilson had already flagged the risk of a further pullback in the chip index.
Key Sectors and Stocks This Week
AI: Compute Chips
Stock | Wk | YTD | Volume |
NVDA Nvidia | −11.3% | −2.6% | 2.6x |
AMD | −19.9% | +88.8% | — |
Nvidia closed Thursday at $181.60, back below its 2025 year-end close. The eight major chip stocks fell about 13% on average that day, so Nvidia fell less than most. AMD closed at $404.40, down 17.3% on the day, but is still up about 89% this year.
AI: Memory and Interconnect
Stock | Wk | YTD | Volume |
MU Micron | −25.8% | +130.0% | — |
MRVL Marvell | −32.0% | +57.4% | — |
Micron fell 17.5% on Thursday to $656.39 and gave back about a quarter of its value this week, yet its year-to-date gain is still the largest of the five. Marvell fell harder than peers on Monday after agreeing to buy Lumentum, then dropped another 16.4% on Thursday, making it the week's biggest loser of the five.
Processors
Stock | Wk | YTD | Volume |
INTC Intel | −20.5% | +41.6% | 2.3x |
Intel plunged nearly 29% last Friday on weak fourth-quarter revenue guidance and fell another 10.3% this Thursday to $52.25. Management also said data center revenue growth was the strongest in 15 years.
Volume = Thursday's volume ÷ 3-month average volume, shown only where the average was available.
Stock Spotlight
NVDA Nvidia: A year's gain erased in one day
Nvidia closed Thursday at $181.60, down 9.26% and below its 2025 year-end close of $186.50, turning its year-to-date move from +7.3% the day before to −2.6%. For the week it is down 11.3%. The drag was not company news: investors worried about tighter AI data center rules after the midterms, while hedge funds rushed to lock in this year's gains. Thursday's volume was 2.6x the 3-month average. Investors are now waiting for Nvidia's earnings on Nov. 17.
INTC Intel: Still digesting last Friday's bad news
Intel guided fourth-quarter revenue to $15 billion to $16 billion, below the market's expectation of about $17 billion. The company said weaker PC demand and a tight memory chip supply pushed up costs, with the shortage expected to last at least through the first half of 2027. The stock plunged nearly 29% last Friday and fell another 10.33% on Thursday to $52.25. It is down 20.5% for the week but still up 41.6% this year. Thursday's volume was 2.3x the 3-month average.
Discussion of the Week
Positioning unwind or turning point?
Nomura's explanation is about positioning: hedge funds rushing to lock in this year's gains. At the same time, the market is worried about AI regulation and slower data center construction. With both forces at work, Thursday was a broad selloff rather than a stock-by-stock story. Three numbers to compare: the chip index −12.25%, the VIX at 28.18, and the 10-year Treasury yield at 4.837%. According to media tallies, chip stocks ended higher in all eight midterm cycles since 1994, but in 2002 and 2018 they first fell about another 11%.
Who is selling, and who is not?
Vanda Research data show retail investors had net sold $358 million of US stocks by Thursday afternoon, on pace for the biggest net-selling day since March 2020. Vanda's Viraj Patel called it a "total capitulation" by retail investors, alongside a "buyers' strike" among institutions. The same week, Goldman Sachs Asset Management still stressed strong 2026 earnings growth. Two things are worth watching: whether retail selling peaks in a single day, and whether risk appetite returns after next week's CPI.
Key US Stock Calendar Next Week
Date | Event | Notes |
11/9 (Mon) | Take-Two earnings | Fiscal Q2 results; timing per company announcement |
11/10 (Tue) | October CPI | First inflation reading after the selloff; shapes the rate outlook |
11/10 (Tue) | CoreWeave earnings | Q3 results; conference call after the close |
11/12 (Thu) | Cisco earnings (after close) | Fiscal Q1 results, released after the close |
11/12 (Thu) | Applied Materials earnings | Fiscal Q4 results; conference call after the close |
11/12 (Thu) | Nebius earnings (before open) | Q3 results, released before the open |
11/13 (Fri) | October PPI | Upstream price gauge, read alongside CPI |
11/17 (Tue) | Nvidia earnings (after close) | Fiscal Q3 results; conference call after the close |
11/17 (Tue) | Disney earnings (before open) | Fiscal Q4 and full-year results, released before the open |
Earnings dates are from company announcements and macro dates from public calendars; official announcements prevail.
Q&A
Q: How did US stocks do this week?
A: From the 10/30 close to the 11/5 close, the S&P 500 fell 2.99% and the Nasdaq 4.41%. The first three sessions were slightly positive; on Thursday alone the S&P 500 lost 4.36% and the Nasdaq 5.52%, closing in correction territory.
Q: Why did chip stocks fall so much on Thursday?
A: Public reports point to two reasons: hedge funds rushing to lock in this year's gains by selling the most crowded winners (Nomura's view), and worries about tighter AI data center regulation after the midterms. The Philadelphia Semiconductor Index fell 12.25% that day.
Q: Is Nvidia still up this year?
A: It closed Thursday at $181.60, below its 2025 year-end close of $186.50, leaving it down 2.6% year to date. The day before (11/4) it was still up 7.3% for the year.
Q: What happened to Intel this week?
A: Intel plunged nearly 29% last Friday after its fourth-quarter revenue guidance ($15 billion to $16 billion) came in below expectations, then fell another 10.33% on Thursday to $52.25. It is down 20.5% for the week and still up 41.6% this year.
Q: What events matter next week?
A: October CPI and CoreWeave earnings on Tuesday (11/10); Cisco, Applied Materials and Nebius earnings on Thursday (11/12); October PPI on Friday (11/13). Nvidia and Disney report the following Tuesday (11/17).
Disclaimer: This article is compiled and written by the MEXC RealStocks team. The data in this article is based on the closing of the US stock market on November 5, 2026. Wk = 10/30 close to 11/5 close (4 trading days); YTD = 2025/12/31 close to 11/5 close; Volume = Thursday's volume ÷ 3-month average volume. The content is a compilation of public market information, and individual stocks are publicly discussed targets, which do not represent the recommendation or opinion of MEXC and do not constitute any investment advice. Institutional views are cited from public reports; they are third-party opinions only and do not represent MEXC's position. More US stock content: @MEXC | @Alpha_MEXC | @MEXC_Research
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