US Chip Stocks Face Heavy Sell-Off as Nasdaq Tumbles Over 5.5 Percent

China News Service reported that United States stock markets fell sharply on November 5, as semiconductor shares and artificial intelligence-related equities faced large-scale selling pressure, causing the technology-heavy Nasdaq Composite Index to tumble more than 5.5 percent. At the close of trading, the Nasdaq fell 1421.52 points, or 5.52 percent, to end at 24315 points, while the Dow Jones Industrial Average dropped 1833.06 points, or 3.44 percent, to 51523.06 points, and the Standard and Poor's 500 Index lost 334.89 points, or 4.36 percent, to finish at 7353.73 points. Semiconductor equities bore the brunt of the downturn, with the Philadelphia Semiconductor Index dropping 12.25 percent to record its largest single-day decline since March 2020. Among individual shares, SanDisk dropped 22.26 percent, Micron Technology lost 17.46 percent, AMD fell 17.26 percent, Intel declined 10.33 percent, Qualcomm slid 9.49 percent, and Nvidia dropped 9.26 percent. Market analysts noted that United States midterm election results intensified investor doubts regarding policy directions for artificial intelligence. After Democrats regained majorities in both congressional chambers and the Texas governor-elect urged an immediate pause on data center development, investors grew concerned that shifting regulatory environments could affect chipmakers' orders and growth expectations.

Bloomberg reported that the sharp sell-off in chip and artificial intelligence shares quickly erased previous gains in United States equities. The downward momentum extended into other market sectors, leaving investor sentiment under sustained pressure while confidence may require considerable time to recover.