Stocks Slide as Chip Makers Lead Losses

U.S. indexes fell in early trade on November 5, 2026, as semiconductor stocks extended losses for a second straight day.

Updated on Nov. 5, 2026 in Stock Markets

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The Dow Jones Industrial Average declined 1.14% to 52,737.2 points, the S&P 500 fell 2.23% to 7,526.03, and the Nasdaq Composite slipped 3.4% to 24,843. The drop followed an early opening in green before heavy profit-taking set in.

Why it matters

Investors locked in gains after the previous session's rally that followed Democrats' sweeping victory in the U.S. midterm elections, while also reassessing risks tied to the U.S.-Iran conflict. The selling is concentrated in semiconductor names, a sector that has driven much of the recent market momentum.

Early-trade moves show the Dow down 1.14% to 52,737.2, the S&P 500 down 2.23% to 7,526.03, and the Nasdaq down 3.4% to 24,843. Among chip stocks, AMD fell nearly 11%, SK Hynix nearly 8%, Micron 6.5%, and Intel nearly 6%, with the close not yet reported.

The players

Dow Jones Industrial Average

The Dow Jones Industrial Average is a price-weighted index of 30 large publicly traded U.S. companies and one of the oldest benchmarks of American stock market performance.

S&P 500

The S&P 500 is a market-capitalization-weighted index of 500 large U.S. companies widely regarded as the best single gauge of the U.S. equity market.

Nasdaq Composite

The Nasdaq Composite is a stock market index that includes nearly all companies listed on the Nasdaq exchange and is heavily weighted toward technology firms.

The details

The Dow opened higher before tumbling as investors took profits, with heavy selling hitting memory, processor, and equipment makers. Semiconductor stocks extended losses into a second straight day, with Broadcom down roughly 4.5% and Nvidia down roughly 3.8%.

November 4, 2026: Stocks rallied following Democrats' midterm election victory, while oil sold off.
November 5, 2026: Indexes declined in early trade as semiconductor selling deepened and oil rebounded.

Market Dynamics

The decline tests whether semiconductor stocks, which led the AI-driven rally through 2023 to 2025, can keep anchoring broader index gains. Chip names have been the main engine of index performance, so a multi-day slide in that group weighs disproportionately on the Nasdaq and S&P 500.

Investors with exposure to index funds or semiconductor holdings saw portfolio values fall in early trade. Those rebalancing after the recent rally may want to review position sizes against their risk tolerance.

The takeaway

Single-day moves in early trade often reverse by the close, so the full-session results will show whether this is profit-taking or a broader shift. Reviewing concentration in chip stocks is a practical step for any portfolio tied to the major indexes.