Nasdaq falls 5.5% into correction territory as AI shares lead market rout

AI-linked shares led a broad sell-off on Nov. 5, with the Nasdaq falling about 5.5% into correction territory. Investors worried potential restrictions could slow data-center construction after the midterms. Historical recoveries offer limited guidance: past gains measured from correction bottoms do not identify this market’s bottom, and the January 2022 correction brought further losses.