US Stocks Suffer Worst Sell-Off in 19 Months as AI Rally Fades

US stocks suffered their worst sell-off in 19 months on November 5, with the Nasdaq Composite plunging 5.52 percent, one day after a sharp rally fueled by the US midterm elections. The decline was triggered by a broad sell-off in semiconductor and AI-related stocks, with AMD falling 17.3 percent and Micron dropping 17.5 percent, as investors questioned whether valuations had run too far. The Democratic election victory also raised concerns about potential tighter regulations on AI data-centre expansion. The market had rallied sharply on November 4 after Democrats won control of both the House and Senate, but profit-taking quickly emerged the next day. The volatility gauge surged, signaling a sudden jump in investor anxiety across all three major indexes.