S&P 500 Suffers Largest One-Day Drop Since April 2025

The S&P 500 experienced its worst single-day performance since April 2025 on November 5, 2026, closing at 7,353.73 after a 4.36% decline. The sell-off was led by technology shares, with the Philadelphia Semiconductor Index dropping approximately 12% following poor reports from chipmakers and investor anxiety over potential limits on artificial intelligence data centers following the midterm elections.

Charlie Bilello of Bilello Capital reported that this volatility pushed the Nasdaq into correction territory and triggered significant drawdowns in speculative categories. Meme stocks have fallen 57% from their 2026 peaks, while momentum and high beta stocks dropped 27% and 21%, respectively. While growth stocks are down 6% for the year, value stocks have risen 24%. Despite the recent crash, the S&P 500 remains up approximately 7% for 2026, though it sits 6% below its October 6 record close.

Bilello characterized the volatility as "the price of admission" for long-term equity returns and stated that "some sanity has returned to the market." While October unemployment remained firm at 4.1%, Bilello expects the Federal Reserve to hike interest rates in December.