Markets in 5Friday, November 6
AI chip selloff pushes Nasdaq into correction, Asia tumbles
Chip stocks drove the Nasdaq into correction on Thursday, with Treasury yields lower and Asian markets sharply down overnight.
Stocks
Nasdaq enters correction as AI chip selloff deepens
The S&P 500 fell 4.36% to 7,353.73 and the Nasdaq Composite dropped 5.52% to 24,315.00, leaving the Nasdaq in a correction more than 10% below its record from last month. The Dow Jones Industrial Average lost 1,833.06 points, or 3.44%, to 51,523.06. All three major averages posted their worst day since April 2025, and only 71 S&P 500 stocks gained.
Global
Asian markets tumble, with Nikkei down 6.14%
Japan's Nikkei 225 fell to 57,328, down 6.14% and its biggest one-day drop since April 2025. South Korea's Kospi fell more than 6% and circuit breakers were reportedly triggered, while Taiwan's Taiex recorded its largest single-day drop on record. In Europe, the Stoxx 600 closed down 0.4% at 654.87.
Sectors
Chip stocks lead broad sell-off across all sectors
All eleven sectors finished lower, with technology and consumer discretionary named among the biggest decliners in Reuters-syndicated coverage. The eight chip stocks in the reporting table fell 12.97% on average, while Nvidia dropped about 9.26% and the Philadelphia Semiconductor Index fell more than 12%. The selling followed fears that the Democrats' midterm win would slow AI spending on data centers.
The Fed
Fed officials keep further rate hikes on the table
Cleveland Fed President Beth Hammack said policy needs to move to a restrictive stance, and Richmond Fed chief Thomas Barkin hinted at possible future rate hikes. The Federal Reserve last voted 10-2 to hold its benchmark at 3.75-4.00%, with Lisa Cook and Hammack dissenting in favor of a hike. Futures pricing put the chance of a December hike near 70%, down from about 83% on Wednesday.
Rates
Treasury yields fall, with the 10-year at 4.84%
Treasury par yields fell across most maturities on Thursday. The 10-year yield closed at 4.84%, down 6 basis points from 4.90%, and the 2-year eased to 4.46% from 4.58%. The 30-year closed at 5.25%, down from 5.28%, and the 2s10s spread stood at 38 basis points.