What a market correction is, and the reasons offered for the AI fall

The NASDAQ Composite Index closed at 24,315.00 on 2026-11-05 and at 25,736.51 on 2026-11-04.

FRED NASDAQCOM csv: 2026-11-04 25736.510; 2026-11-05 24315.000

The NASDAQ Composite Index closed at 24,579.42 on 2026-11-06.

FRED NASDAQCOM csv: 2026-11-06 24579.420

FINRA says a correction is when stocks, bonds, commodities or indices reverse course by at least 10 percent before resuming their previous upward or downward trend.

Correction: A correction is when stocks, bonds, commodities or indices reverse course by at least 10 percent before resuming their previous upward or downward trend.

FINRA says a decline of 20 percent or more in a broad market index is generally said to meet the threshold of a bear market.

Generally, a decline of 20 percent or more in a broad market index is said to meet the threshold of a bear market.

FINRA says a 7 percent drop in the S&P 500 from the previous day's close before 3:25 p.m. is a Level 1 halt that shuts trading across all stock and futures exchanges for 15 minutes.

if the S&P 500 falls either 7 percent (a Level 1 halt) or 13 percent (a Level 2 halt) from its closing price the previous day before 3:25 p.m., trading is shut down across all stock and futures exchanges for 15 minutes.

A CBS News anchor said the Nasdaq 'dropped more than 5% or more than 1,400 points and entered correction territory' (00:23).

the tech-heavy Nasdaq dropped more than 5% or more than 1,400 points and entered correction territory.

Jessica Inskip, director of investor research at stockbrokers.com, said 'what changed today is there is a new type of uncertainty that was introduced into the market' (01:38) and 'I absolutely do not think this will signal an AI bubble burst' (04:07).

what changed today is there is a new type of uncertainty that was introduced into the market [...] I absolutely do not think this will signal an AI bubble burst.

The Dow Jones Industrial Average closed at 51,523.06 on 2026-11-05 and at 53,356.12 on 2026-11-04.

The S&P 500 closed at 7,353.73 on 2026-11-05 and at 7,688.62 on 2026-11-04.

The BBC's Seoul correspondent (the automatic captions name him 'Jake Kuan') said 'a circuit breaker was triggered this morning when the market dipped more than eight points' in South Korea (02:13).

Uh here in South Korea, a circuit breaker was triggered this morning when the market dipped [music] more than eight points. And this is when the market suspends all trades for 20 minutes

The same correspondent said the two chip giants Samsung Electronics and SK Hynix (rendered 'SKH Highix' in the captions) lost 'about 10%' of their value when the market opened, and are among the biggest suppliers of memory chips that go into AI data centres in the US (02:35).

we've seen the two chip giants Samsung Electronics and SKH Highix lose about 10% of [music] its stock uh value as soon as the market opened. And this is partly because these are the some of the biggest suppliers of the memory chips that goes into AI data centers in the US.

Michelle Fleury said there was 'uncertainty after the election about what all of this could mean for the AI industry and particularly around their ability to build more data centers here in the United States' (01:08).

There was uncertainty after the election about what all of this could mean for the AI industry and particularly around their ability to build more data centers here in the United States.

The BBC's Seoul correspondent said 'the investors are wondering if the Democrats take power, will they be introducing harsher regulations that will stop AI infrastructure buildout in the US' (02:52).

And the investors are wondering if the Democrats take power, will they be introducing harsher regulations that will stop AI infrastructure buildout in the US?

Ben Chu of BBC Verify said: 'Around half of US voters said they were a crucial or major issue for them in the midterm elections' (05:38); the poll is not named in the transcript.

Around half of US voters said they were a crucial or major issue for them in the midterm elections.

Fleury said President Trump's Truth Social statement 'doesn't necessarily answer the questions that investors are asking about the cost and about the challenges of building all of this infrastructure' (08:29).

He wrote on Truth Social that he is 100% in favor of super intelligence [...] that doesn't necessarily answer the questions that investors are asking about the cost and about the challenges of building all of this infrastructure.

Bob Parker, senior adviser at the International Capital Market Association, said 'this is a correction not the start of a major downtrend' (03:46).

suggests that this is a correction not the start of a major downtrend

Zoe Kleinman, the BBC's technology and AI editor, said 'the AI technology that we have today isn't going to change. Everything will still work' (08:50), and that fewer data centres would 'slow down the evolution of this tech' (09:03).

the AI technology that we have today isn't going to change. Everything will still work. [...] What it would do is slow down the evolution of this tech

Kleinman said the AI giants already have a lot of capacity, and 'It's the newer, smaller rivals that are trying to compete with them that might be hit hardest' (09:41).

if you think about the AI giants, they already have quite a lot of capacity. They have more data centers. It's the newer, smaller rivals that are trying to compete with them that might be hit hardest

Qualcomm's 4 November 2026 results release reports fourth-quarter fiscal 2026 GAAP revenues of $10,322 million, against $11,270 million a year earlier, and first-quarter fiscal 2027 revenue guidance of $10.4B - $11.2B.