Nasdaq‑100 selloff erases US$2.3T as technology shares slide
Nvidia closed 9.26 per cent lower as Bloomberg reported that trend-following funds amplified the Nov. 5 decline.
Theo Marchetti
The Nasdaq-100 lost US$2.3 trillion in market value at Thursday's close, Bloomberg reported, while the Nasdaq exchange's Nov. 5 index data showed a 6.36 per cent decline. The index finished at 26,629.81, down from its previous close of 28,437.17.
NVIDIA Corporation NASDAQNVDA fell 9.26 per cent to US$181.60 at the Nov. 5 close on Nasdaq, according to Google Finance's closing snapshot stamped 4 p.m. EST. Google Finance's NASDAQNVDA snapshot, stamped Nov. 5 at 4 p.m. EST, showed 306.13 million shares traded, against a displayed average of 104.95 million.
Bloomberg's Nov. 6 report attributed part of the selling pressure to trend-following systematic strategies, saying they amplified the decline. It also reported investor concern that a Democratic sweep could bring tighter regulation of artificial-intelligence infrastructure, constraining growth for chipmakers and data-centre suppliers.
The losses reached beyond the largest technology shares, with the broader Nasdaq Composite falling 5.52 per cent to 24,315.00 at the Nov. 5 close. Both indexes finished near the bottom of their Nov. 5 trading ranges. The next scheduled consumer-price report is Nov. 10, giving sector holders another inflation reading before Nvidia's financial results later in the month.
Share Losses Accompany Rising Data-Centre Sales
The market retreat came alongside evidence of expanding sales at a major chip supplier. Advanced Micro Devices, Inc. NASDAQAMD reported on Nov. 3 that third-quarter data-centre revenue reached US$8.5 billion, up 97 per cent from a year earlier.
In its Nov. 3 release, AMD attributed that increase to demand for its EPYC processors and the launch of its Instinct MI450 Series graphics processors. Total quarterly revenue rose 45 per cent to US$13.4 billion, while net income reached US$2.4 billion. The company reported a gross margin of 54 per cent, compared with 52 per cent in the year-earlier quarter.
"We delivered a record quarter with revenue exceeding the high end of our guidance as Data Center segment sales nearly doubled year-over-year," AMD chair and chief executive Lisa Su said in the Nov. 3 release.
AMD's results describe sales already recorded, while Bloomberg's account of the selloff concerns investor expectations for future growth and regulation. The reported systematic selling adds a separate explanation for the intensity of the market decline; the exchange's index data does not identify the strategies behind individual trades.
Read more: Advanced Micro Devices forecasts US$17B sales as data-centre revenue jumps 97 per cent
Inflation Data Precedes Nvidia's Results
Nvidia's investor calendar lists its third-quarter fiscal 2027 financial-results webcast for Nov. 17 at 5 p.m. EST. That report will provide another company-level account of sales and profitability following the technology-share decline.
Before that, the Bureau of Labor Statistics' November calendar, updated Nov. 3, schedules October's Consumer Price Index for Nov. 10 at 8:30 a.m. EST. The release will show the latest monthly inflation figures, a separate economic test from the regulatory concerns Bloomberg reported.
