A market crash in AI stocks wipes out $2.9 trillion as Nasdaq falls 5.52%

An AI stocks market crash erased about $2.9 trillion from listed companies on November 5, 2026, as investors confronted the prospect of tighter data-center regulation after Democrats’ midterm election victories. The Nasdaq Composite fell 5.52% into correction territory, while concerns about returns on massive artificial intelligence investments intensified the selling. Key takeaways The Nasdaq Composite’s 5.52% slide put it in correction territory. Democratic election wins heightened concerns about restrictions on AI infrastructure. Tesla and SpaceX each lost nearly 10%. The sell-off spread to Asian and European markets. The AI stocks market crash hits major US indexes The Nasdaq Composite fell 5.52% to end the session at 24,315.00, while the S&P 500 dropped 4.36% to settle at 7,353.73.

BeCrypto News shows a short excerpt and links to the publisher. The full report belongs to The Cryptonomist.