Stock Market Today: Nasdaq Sinks 5% as AI Selloff Hits Chip and Data-Center Stocks, Oil price at $96
U.S. stocks fell sharply on November 5, with the Nasdaq Composite down over 5% and the S&P 500 losing around 3.5%. Qualcomm's weak smartphone-chip sales worsened tech sector declines. Chipmakers and data-center suppliers led losses, while oil prices rebounded slightly to $96 per barrel. Investors reassessed AI infrastructure growth expectations post-election.
How this was made
The 30-second read
Why it matters
The selloff reflects a repricing of AI infrastructure expectations, with chip makers bearing the brunt of investor caution.
Market read
Qualcomm's earnings miss is a catalyst for the broader semiconductor decline, influencing market sentiment across tech stocks.
What to watch
The earnings beat on adjusted EPS may support short‑term buying on the dip if the market overreacts to handset numbers.
Background
The article describes a broad AI‑related selloff across U.S. markets, highlighting sector weakness and election‑related political risk.
Ticker impact
Qualcomm reported Q4 handset revenue down 26% YoY to $5.14B, missing estimates, driving broader chip selloff.
likely pressure as the market prices in weaker handset revenue
Earnings miss on a key growth segment directly triggered sector weakness.
Market effects
Broad semiconductor and data‑center stocks may see further declines as demand concerns spread.
U.S. equity indices under pressure, with Nasdaq falling over 5% intraday.
Potential ripple effect on global tech supply chains and AI infrastructure spending.
Counterpoint
Qualcomm's automotive revenue growth of 89% could offset handset weakness if investors focus on diversification.
Key entities
- companyQualcomm
Provider of smartphone chips; reported Q4 earnings miss on handset revenue.
- indexNasdaq Composite
U.S. tech‑heavy index down >5% intraday.
