Nasdaq nears correction territory as AI spending worries hit tech stocks

The Nasdaq Composite fell 3.2% to 24,796.06 during trading on November 5, putting the index 10% below its October 6 record close and on pace to enter correction territory, Reuters reported. The decline sharpened investor concerns about the scale of AI spending and scrutiny of data-center expansion.

A fall of 10% from a recent record closing high meets a widely used definition of a market correction. Reuters described the Nasdaq as on pace to confirm one; its report did not establish Thursday’s closing level. If confirmed, it would be the index’s second correction this year.

Why data-center plans are drawing scrutiny

Separately, the Wall Street Journal reported in an article republished by the Hindustan Times that voters backed candidates critical of data-center construction. More than a dozen Ohio towns voted to halt or restrict new development, and towns in Kansas, Florida and California passed similar measures. The local votes show how opposition to new facilities has become a planning issue alongside the investment debate.

The Hindustan Times, carrying the Journal report, said OpenAI leaders discussed whether election results meant they should reset expectations for the company’s data-center capacity the following year. The account attributed that discussion to a person familiar with it. It also cited Evercore ISI’s estimate that Texas, Georgia and Ohio together account for more than 40% of planned US data-center capacity, and reported that Anthropic had warned investors that moratoriums could delay or prevent facilities it needs.

AI computing demand remains substantial

The infrastructure picture also includes continued investment. The Register reported that Hyperion Research estimated first-half 2026 revenue in its on-premises high-performance computing and AI-for-Science server market at $16.5 billion, up 19.9% from a year earlier. Unit shipments increased 4.4%, a much slower pace than revenue; higher prices for systems using GPUs, accelerators and memory contributed to the difference.

Hyperion bases its market tracking on surveys of buyers and suppliers, The Register reported. The firm linked growth to AI, large language models and purchases of large GPU and accelerator systems. It also said organizations continue to invest to replace aging machines and adopt AI, while describing high-performance computing procurement as cyclical. These figures cover a defined on-premises market; they offer context on infrastructure demand but do not measure the entire AI build-out or establish the cause of the Nasdaq’s decline.