Stock Market Live Updates: Dow crashes over 1,200 points, Nasdaq 4% as AI stocks take a hit after midterm polls

US Markets Witness Sharp Decline

United States equity markets recorded a steep sell-off on 5 November 2026, with the Dow Jones Industrial Average falling more than 1,200 points and the Nasdaq dropping 4%. The decline was triggered by a weak chip sales outlook from Qualcomm, which weighed heavily on technology stocks. Artificial intelligence infrastructure companies came under particular pressure, extending losses across the sector. The movement followed the midterm elections, though the article attributes the immediate trigger to corporate earnings guidance rather than electoral outcomes.

Market participants were also monitoring oil prices, commentary from the Federal Reserve and the upcoming US jobs report scheduled for Friday. Ohsung Kwon, chief equity strategist at Wells Fargo, was quoted in connection with Texas, though the excerpt does not elaborate on the context of that reference.

Why This Matters For Businesses

For Indian companies with exposure to US capital markets, the sharp correction affects valuations of listed subsidiaries, American Depositary Receipts and cross-border investment portfolios. Technology and AI-linked firms may see sentiment-driven pressure on fundraising plans, vendor contracts and partnership negotiations tied to US counterparts. A weaker Nasdaq can also influence global venture funding sentiment, potentially delaying or repricing deals involving Indian startups and their overseas investors.

From a tax and compliance perspective, mark-to-market losses on foreign securities held by Indian residents or entities could have implications under Indian tax law, depending on the nature of holding and applicable provisions. Corporates with US operations should assess any impact on transfer pricing documentation, intercompany arrangements and hedging positions. Treasury teams may need to review foreign exchange exposure if volatility persists.

What Readers Should Watch

Attention will centre on the Federal Reserve's commentary for signals…