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AI Stocks Sink Nasdaq Into Correction Territory in Midday Selloff

November 5, 2026 at 12:57 EST

Finance

A broad selloff in AI-related shares pushed the Nasdaq Composite down about 5% at midday, leaving the index in correction territory.

Midday session · Nasdaq Composite

A broad AI selloff pushes the Nasdaq into correction territory

AI-related shares fell broadly, dragging the technology-heavy index down about 5% at midday. That move placed the Nasdaq in correction territory, a level generally described as roughly 10% below its recent peak.

~5%

Nasdaq Composite decline at midday

~10%

Typical correction threshold, measured below the recent peak

Midday decline vs. correction threshold

Each block represents 1 percentage point. Both values are shown on the same scale.

~5%

Midday decline

~10%

Correction threshold

The midday drop is about half the depth associated with a correction. Correction status is measured against the recent peak, so the index's level from that peak is the deciding figure.

What the move signals

A correction marks a substantial shift in investor sentiment, but it does not by itself signal a longer downturn.

Why it matters

The Nasdaq is closely tied to large technology and AI-linked companies, so drops in that group weigh on the wider market.

Still unknown

Which companies led the decline, the single trigger, and the closing levels, which may differ from midday figures.

Watch next

Whether the selloff persists, whether it spreads to other sectors, and how AI-focused companies respond to pressure on their valuations.

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