AI stocks selloff drags US equities lower; Europe mixed at close

An AI stocks selloff weighed on US equities in the latest session, with chipmakers and AI-linked names leading the liquidation, according to investingLive. European markets were mixed as London and other European traders headed home, leaving the US declines as the main story of the day.

Key points

• The Dow surged nearly 1,600 points in the previous session, even as parts of the AI trade struggled.
• In the latest session, the Dow had given back most of that gain.
• The Russell 2000 was down more than 4%, and the Nasdaq 100 was down more than 5%.
• The selling reached beyond chipmakers into power and infrastructure names tied to the AI buildout.
• The Nasdaq indices had bounced off their lows, according to investingLive.

What happened

According to investingLive, the liquidation in US stocks was the main focus for European traders as they finished their day. Investors are weighing the path forward for AI-related shares after the US midterm elections, and that uncertainty has hit the most heavily positioned parts of the market hardest. The source notes that the Dow had rallied sharply the day before despite weakness in some AI names, which makes the reversal stand out.

The selling did not stop at semiconductor companies. According to the same report, power and infrastructure stocks linked to the buildout of AI data capacity also came under pressure, which suggests the pullback is broader than a rotation within technology.

The Nasdaq indices were described as having bounced from their lows. However, the investingLive summary is cut off before it covers the Dow and the Russell 2000 in detail, so the extent of their intraday recovery is not clear from the material available.

Why the AI stocks selloff matters for traders

Sharp swings in AI-linked shares can influence risk appetite across markets. When equity indices fall quickly, traders often reassess exposure to growth and technology names, and that reassessment can spill into currencies, particularly those seen as sensitive to risk sentiment. The move from a strong gain to a steep decline shows how quickly sentiment can change.

Broad declines also matter for hedging and positioning. A drop that reaches small caps, as measured by the Russell 2000, suggests selling is not confined to large technology names. Traders typically watch whether the bounce in the Nasdaq indices can hold, but this article does not offer a view on direction.

Market reaction and data

The European Central Bank daily reference rates for 2026-11-05 are shown below. These are daily fixes, not live quotes, so they do not capture intraday moves during the US session.

These reference rates do not reflect the equity moves described above, so readers should treat them as a daily snapshot rather than a measure of closing levels during the AI stocks selloff in New York trading.

What to watch next

Friday brings a cluster of high-impact releases at 13:30 UTC. US Non-Farm Employment Change is forecast at 65K against 29K previously, while the US Unemployment Rate is forecast at 4.2%, unchanged from the previous reading. US Average Hourly Earnings m/m is forecast at 0.3%, up from 0.1%.

• CAD Employment Change: forecast 14.6K, previous -68.3K (13:30 UTC)
• CAD Unemployment Rate: forecast 6.5%, previous 6.5% (13:30 UTC)
• BOJ Gov Ueda Speaks (16:00 UTC)

Open questions include whether the AI stocks selloff extends into power and infrastructure names, and whether the Nasdaq rebound holds. Traders will also watch how the Dow and Russell 2000 close relative to their recent moves.

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FAQ

What caused the AI stocks selloff in US markets?

According to investingLive, investors are weighing the path forward after the US midterm elections, and AI and chip names took the hardest hit. The source also says the selling spread to power and infrastructure names tied to the AI buildout.

Did European stocks fall too?

Not uniformly. According to investingLive, European markets were mixed, and the source does not provide index-level figures for individual European markets.

Where can I find the latest currency reference rates?

The ECB publishes daily reference rates, and the ones cited in this article are dated 2026-11-05. They are daily fixes rather than live quotes, so intraday levels may differ.