U.S. Stock Markets Suffer Worst One-Day Decline Since 2025
U.S. stock markets experienced severe losses in early November driven by a technology selloff, political shifts, and expectations of a December interest rate hike.
The United States stock market suffered its worst one-day declines since April 2025 during the first week of November 2026. The Dow Jones Industrial Average erased all gains from the post-midterm rally, while the Nasdaq Composite entered correction territory. This downturn was primarily driven by a technology selloff, with semiconductor and software firms including Micron Technology, Intel, and AMD losing up to 25% of their value amid policy fears regarding artificial intelligence.
Political volatility contributed to the crash as the Democratic Party secured majorities in both the House of Representatives and the Senate. These results led to expectations that the United States Congress will limit the president's agenda. Simultaneously, crude oil prices fell sharply, with WTI and Brent futures dropping more than 13%.
Economic data further pressured the markets. October nonfarm payrolls increased by 165,000, exceeding expectations and increasing the probability of a 25-basis-point interest rate hike in December to 77.1%.
