# Nasdaq drops into correction territory — here’s what typically happens next

- URL: https://talkfuse.com/story/nasdaq-drops-into-correction-territory-heres-what-typically-happens-next/
- Published: 2026-11-05T21:57:33+00:00
- Updated: 2026-11-05T22:36:20+00:00
- Original publisher: CNBC (publisher lean: Centre)
- Original article: https://www.cnbc.com/2026/11/05/nasdaq-drops-into-correction-territory-heres-what-typically-happens-next.html
- Topics: Business, Markets

## Key points

- The Nasdaq has entered correction territory after election results.
- Data centre restrictions could pressure AI-related companies.
- Semiconductor shares fell sharply, while past cycles point to possible recovery.

## Summary

The Nasdaq has entered correction territory after Democrats won both chambers of Congress and made gains in Texas, where Gina Hinojosa won the governorship. Investors are concerned that tighter restrictions on data centre development could slow construction and weigh on companies linked to artificial intelligence.

Past midterm cycles suggest the Nasdaq has usually risen over the following year, but with possible near-term turbulence. Analyst Frank Cappelleri found the index was higher 12 months after 12 of 13 midterm elections since 1974; after the 2018 election, it fell sharply in December before ending about 15% higher a year later. On Thursday, the iShares Semiconductor ETF dropped 12%, its steepest one-day fall since March 2020.

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Summarised by TalkFuse (https://talkfuse.com/). Quote the original publisher for the reporting and link this page for the summary and discussion.