Yes, tech stocks sold off sharply on Thursday, November 5, 2026. Shortly after the opening bell, the Invesco QQQ Trust was down 3.8 percent, the SPDR S and P 500 ETF was down 1.88 percent, and the Dow Jones Industrial Average was down 0.98 percent. Chip shares led the fall, with the VanEck Semiconductor ETF down 6.66 percent and the Technology Select Sector SPDR ETF down 4.66 percent. The drop came just one day after a huge post midterm rally, and it wiped out much of Wednesday’s gain in the Nasdaq and the S and P 500.
Quick Facts
| Date | Thursday, November 5, 2026, morning session |
| Invesco QQQ Trust | Down 3.8 percent shortly after the open |
| SPDR S and P 500 ETF | Down 1.88 percent shortly after the open |
| Dow Jones Industrial Average | Down 0.98 percent shortly after the open |
| Technology Select Sector SPDR ETF | Down 4.66 percent |
| VanEck Semiconductor ETF | Down 6.66 percent |
| iShares A.I. Innovation and Tech Active ETF | Down 8.34 percent |
| iPath S and P 500 VIX Short-Term Futures ETN | Up 12.34 percent |
| Nvidia | Down 2.1 percent in early trading |
| AMD | Down 7.5 percent in early trading |
| Micron | Down 5.3 percent in early trading |
| Qualcomm | Down about 10 percent in premarket trading to 156.30 dollars |
| Arm | Down 5.45 percent in extended trading |
| iShares 20+ Year Treasury Bond ETF | Up 0.12 percent |
How sharp was the morning sell off
The scale of the morning fall was clear from the first minutes of trading. The QQQ, which tracks the Nasdaq 100, was down 3.8 percent shortly after the opening bell. That is a large move for a broad index fund in such a short time, and it showed that sellers were active across the whole technology sector, not just in one or two names. The SPDR S and P 500 ETF was down 1.88 percent at the same point, while the Dow Jones Industrial Average was down 0.98 percent, which showed that the pain was centered on tech rather than spread evenly across every sector.
The fear gauge told the same story in the other direction. The iPath S and P 500 VIX Short Term Futures ETN was up 12.34 percent, which means that traders were paying more for protection against further falls. Bond prices rose slightly at the same time, with the iShares 20+ Year Treasury Bond ETF up 0.12 percent. That small rise fits the pattern of a risk off morning, in which some money moves out of stocks and into safer assets.
The sector funds gave the clearest picture of where the damage was. The Technology Select Sector SPDR ETF fell 4.66 percent, the VanEck Semiconductor ETF fell 6.66 percent, and the iShares A.I. Innovation and Tech Active ETF fell 8.34 percent. A fall of more than 8 percent in the AI fund shows how hard artificial intelligence names were hit. The tech stocks sell off November 5 was therefore a broad and fast drop, led by chips and AI names.
Chips led the fall
Chip shares were at the center of the sell off. Nvidia was down 2.1 percent in early trading, AMD was down 7.5 percent, and Micron was down 5.3 percent. Those three names cover a wide part of the chip market, from graphics chips and AI hardware to processors and memory, so their falls together show that the whole group was under pressure. The VanEck Semiconductor ETF, which holds a basket of chip stocks, was down 6.66 percent, which confirms that the drop was broad across the sector. The wider memory fall is covered in the report on Micron, SanDisk and SK Hynix falling after Qualcomm earnings.
The chip fall matters because chips had been one of the main drivers of the market in recent months. Investors had bought chip stocks on hopes that demand for AI hardware would keep growing fast. When a group that has risen a long way starts to fall hard, it can pull the whole market down with it, because those stocks now carry a large weight in the main indexes. That is what happened on Thursday morning.
Qualcomm and Arm beat earnings and still fell
Qualcomm gave the market one of its clearest lessons on Thursday, which is that beating earnings is not always enough. The company reported earnings per share of 2.17 dollars, against an expected figure of 2.02 dollars. Instead, Qualcomm fell about 10 percent in premarket trading, to 156.30 dollars from a close of 173.73 dollars. The reason was that smartphone chip sales missed estimates, and the company said that it expects no further Apple chip sales.
Arm told a similar story. The company beat earnings too, with 0.52 dollars per share against an expected 0.42 dollars, but it still fell 5.45 percent in extended trading. The market was not rewarding a beat on past results. It was punishing any sign that future growth might be slower than hoped.
The full Qualcomm story is set out in the Qualcomm fourth quarter earnings report, which covers the 26 percent fall in handset chip sales in detail. Together, Qualcomm and Arm showed why the morning was so weak. Two companies that had done better than expected on earnings still fell hard, and that sent a signal to the rest of the chip sector that no result was safe from selling.
A sharp turn after Wednesday’s melt up
The contrast with Wednesday could hardly have been sharper. On Wednesday, November 4, 2026, the Dow rose 1,569.40 points, up 3.03 percent, to 53,356.12, its best post midterm day since 1982. The S and P 500 rose 1.58 percent to 7,688.62, and the Nasdaq 100 rose 0.91 percent to 28,437.17. The VIX collapsed 20.26 percent to 16.61.
Thursday morning took back a large part of that gain in the Nasdaq and the S and P 500. The QQQ was down 3.8 percent, more than three times the size of the Nasdaq 100 gain on Wednesday. The Dow held up better, down only 0.98 percent in the early session. The full Wednesday story is covered in the report on the Dow surging 1,569 points in its best post midterm day since 1982.
Earnings elsewhere told a mixed story
Not every earnings report was weak. After the close on Wednesday, AppLovin reported 4.30 dollars against an expected 4.01 dollars, Motorola Solutions reported 4.69 against 4.34, Coherent reported 2.09 against 1.93, and HubSpot reported 3.81 against 2.80. MercadoLibre was the exception, missing with 8.83 dollars against an expected 9.30 dollars.
Thursday morning brought more beats from outside the tech sector. ConocoPhillips reported 3.27 dollars against an expected 3.03 dollars. Cigna reported 7.98 dollars against an expected 7.50 dollars. Tapestry reported 1.82 dollars against an expected 1.56 dollars. Zoetis reported 1.75 dollars against an expected 1.51 dollars. Kimberly Clark reported 1.70 dollars against an expected 1.65 dollars. Becton Dickinson reported 4.15 dollars against an expected 4.07 dollars.
Warner Bros Discovery was also in focus on Thursday after reporting its third quarter results. The mix of results helps to explain why the Dow fell less than the Nasdaq. The Dow holds a wider range of sectors, and many of those companies were reporting solid numbers. The Nasdaq is much more exposed to tech and chips, so it felt the full force of the sell off. For a wider sense of the backdrop, readers can also see the report on US jobless claims falling to 189,000, the lowest since July, and the Bank of England raising rates to 4 percent in its first hike since 2023.
What investors watch next
The next test comes after the close on Thursday, when Airbnb, Cloudflare and Monster Beverage report. They will give traders a fresh read on consumer demand and on tech spending outside the chip sector.
Friday brings two more big reports, from Moderna and Humana. Moderna will be watched for news on its drug pipeline and its sales outlook, while Humana will be watched for signs of how health care costs are moving. Traders will also be watching the bond market and the VIX. A fall in the VIX and a steadier tone in tech would be the first sign that the morning sell off has run its course.
For now, the key facts are simple. Tech stocks sold off sharply in the morning, the Nasdaq took the worst of it, chips led the fall, and even earnings beats from Qualcomm and Arm were not enough to stop the selling. Whether Thursday turns into a short pause or a longer pullback will depend on the earnings still to come.
Frequently Asked Questions
How much did tech stocks fall on November 5, 2026?
In the morning session shortly after the open, the Invesco QQQ Trust was down 3.8 percent, the SPDR S and P 500 ETF was down 1.88 percent, and the Dow was down 0.98 percent. The Technology Select Sector SPDR ETF fell 4.66 percent and the VanEck Semiconductor ETF fell 6.66 percent.
Why did Qualcomm fall after beating earnings?
Qualcomm reported earnings per share of 2.17 dollars against an expected 2.02 dollars, but it fell about 10 percent in premarket trading to 156.30 dollars from a close of 173.73 dollars. Smartphone chip sales missed estimates, and the company said it expects no further Apple chip sales, so traders focused on the weaker outlook rather than the headline beat.
Why did Arm fall after beating earnings?
Arm reported 0.52 dollars per share against an expected 0.42 dollars, but it still fell 5.45 percent in extended trading. Like Qualcomm, it was punished because traders were focused on future growth, not on the past quarter, and the market was already nervous about chip and AI valuations.
What happened the day before the sell off?
On Wednesday, November 4, 2026, the Dow rose 1,569.40 points, up 3.03 percent, to 53,356.12, its best post midterm day since 1982. The S and P 500 rose 1.58 percent to 7,688.62, the Nasdaq 100 rose 0.91 percent to 28,437.17, and the VIX collapsed 20.26 percent to 16.61.
Sources
MarketsOnDeck – How Does a Stock Beat Earnings and Still Fall 10 Percent? Qualcomm Just Showed How
Barchart – Stock Indexes Pressured as Chipmakers and AI Stocks Plunge
Final Thoughts
Thursday morning was a sharp reminder that markets can turn fast. One day after the Dow enjoyed its best post midterm gain since 1982, tech stocks sold off hard, the Nasdaq sank, and chip shares cratered. Qualcomm and Arm both beat earnings and still fell, which tells traders that the market is now judging companies on what comes next, not on what they have already done. The wider earnings picture was mixed, and more reports are still to come from Airbnb, Cloudflare and Monster Beverage after the close.
