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MARKET BRIEFING · US

An election result read as clearing uncertainty flipped into AI regulation fear within a day, handing the semiconductor index its worst session since March 2020.

November 5, 2026 · Read the Korean original

Major indices

  • Dow 51,523.06 -3.44%
  • S&P 500 7,353.73 -4.36%
  • Nasdaq 24,315.00 -5.52%
  • PHLX Semiconductor 9,011.14 -12.25%

What moved the US market overnight was not an economic release but a second reading of the election result. After Democrats took both chambers of Congress in the midterms, an outcome that had been read the previous day as clearing uncertainty was reinterpreted within a day as the risk of tighter rules on AI data centers. Money moved into safe assets: the US 10-year Treasury yield eased from 4.89% to 4.83%, and gold added about 1% around $4,100 an ounce. The volatility index jumped 39%, while crude rebounded 3-4%, reversing the prior session's slump (Reuters). Politics filled the space a quiet data calendar had left.

The indexes handed back the previous day's cheer. The Nasdaq Composite fell 5.52% to 24,315.00, more than 10% below last month's record close and therefore in correction territory, while the S&P 500 lost 4.36% for its worst single day since April 2025. The Dow slipped 3.44%, erasing the 3% gain of the day before. Chips sat at the center of the decline: the Philadelphia Semiconductor Index plunged 12.25% to 9,011.14, its worst day since March 2020. With all 11 S&P 500 sectors lower, this reads less like an accident in one industry than a broad retreat from risk.

The hardest hit were names tied directly to the AI capital-spending cycle. Results and guidance from Qualcomm (QCOM, smartphone modem chips) and Arm Holdings (ARM, chip design IP) failed to impress, and a Bloomberg report that Microsoft had tightened oversight of neocloud providers' data-center projects pushed Nebius (NBIS, neocloud), IREN (IREN, miner turned AI cloud) and CoreWeave (CRWV, neocloud) down together. A tally showing data-center measures on ballots in 41 jurisdictions across 10 states, with 40 approving restrictions, added to the weight (Reuters). As bitcoin slipped below $76,000, Coinbase (COIN, crypto exchange) and Strategy (MSTR, bitcoin treasury company) fell around 10% as well. AppLovin (APP, mobile ad platform) ran the other way, rising sharply after third-quarter results beat expectations, a sign the selling was concentrated on the AI investment theme.

Korea's session today is likely to inherit this flow. In memory, Sandisk (SNDK, NAND flash memory) and Micron (MU, DRAM and HBM memory) fell more than 20% and 17%, which can add pressure to large Korean memory names that have already been correcting. Power infrastructure shares the same catalyst, since a slower data-center buildout would undercut the demand case that lifted transformer and power-equipment names. Tesla's (TSLA, EVs and autonomy) drop of more than 10% can also weigh on sentiment around EV batteries and auto parts.

The US jobs report is due tonight at 10:30 p.m. Korean time. A soft reading could revive rate-cut hopes and limit the damage, while a strong one would put rate pressure back on the market. What is confirmed is the closing declines in the three main indexes and the semiconductor index, the Qualcomm and Arm earnings releases, and the report on Microsoft's tighter neocloud oversight. How much the election outcome actually reduces AI investment and chip demand remains at the stage of media and market interpretation, and some analysts noted it is still unclear whether regulatory worries will translate into weaker demand.

Korean industries to watch today

  • Semiconductors · The plunge in US memory and AI chips may weigh on large Korean memory names
  • Power infrastructure · Data-center regulation worries may shake demand hopes for power equipment
  • EV batteries · Tesla's 10% drop may weigh on sentiment toward EV batteries

Watchlist stocks in the news

  • NVIDIA (NVDA) Close -9.26% · Led the chip decline as fears of tighter AI rules drove heavy selling. (Yahoo Finance)
  • AMD (AMD) Close -17.26% · Fell the most among large chipmakers as worries over slower data-center spending grew. (Yahoo Finance)
  • Broadcom (AVGO) Close -10.66% · Weighed down by its custom AI chip demand being tied to data-center spending. (Yahoo Finance)
  • Micron (MU) Close -17.46% · Hit by doubts over AI memory demand and news that it paused a Taiwan plant plan. (Yahoo Finance)
  • Sandisk (SNDK) Close -21.30% · Dropped the most among chip names as hopes for the memory cycle unwound. (Yahoo Finance)
  • Intel (INTC) · Its foundry investment case was pressured along with AI capex worries. (24/7 Wall St.)
  • CoreWeave (CRWV) · Slid on a report that Microsoft tightened oversight of neocloud projects. (24/7 Wall St.)
  • Nebius (NBIS) · Fell sharply after being named in the same report on tighter oversight. (24/7 Wall St.)
  • IREN (IREN) · Declined as it was linked directly to the report on delayed Microsoft AI spending. (24/7 Wall St.)
  • Dell (DELL) · Slid too, since AI server demand depends on the pace of data-center buildouts. (The Motley Fool)
  • Tesla (TSLA) Close -10.77% · Fell for a second day after the election, among the hardest-hit megacaps. (The Motley Fool)
  • SpaceX (SPCX) · Kept sliding alongside Tesla in the post-election selling. (CNBC)
  • AppLovin (APP) · Jumped as third-quarter revenue and adjusted EBITDA beat expectations. (CNBC)
  • Coinbase (COIN) · Fell with crypto-linked names as bitcoin slipped below $76,000. (24/7 Wall St.)
  • Strategy (MSTR) · Caught in the crypto selling as the value of its bitcoin holdings wobbled. (24/7 Wall St.)
  • QCOM (QCOM) Close -9.70% · Slid as slowing handset sales overshadowed a slight earnings beat. (Yahoo Finance)
  • ARM (ARM) Close -13.00% · Dropped as revenue guidance failed to clear expectations by much. (Yahoo Finance)

Sources (Korean-language)

This market briefing was compiled by AI from this site's own price and filing data together with public news reports, and translated from the Korean original. Please check the sources below before relying on it.

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