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VGT · Analysis updated Nov 6, 2026, 9:50 AM ET
Why is Vanguard Information Technology ETF (VGT) stock moving?
VGT fell about 7.3% on Nov 5, from $115.55 to $107.06. It traded on 16.2M shares, roughly three times the recent average, and closed near its low of $106.89. That is about 13% below the Oct 28 close of $123.59. The drop matched the Nasdaq's 5.5% fall, its worst day since April 2025, and the Nasdaq 100's 6.3% fall. Nvidia fell about 9.3%, and AMD, Qualcomm and the memory names fell more. The triggers were Democratic midterm gains, which raised fears of data-center regulation and slower AI spending, including a proposed Texas moratorium. Qualcomm's weak outlook added to the pressure. Concerns about whether Big Tech capex growth is peaking, and about the financing of AI buildouts, also weighed. Some views conflict. Raymond James says the AI cycle is intact. Cramer notes that the leaders still report strong profits. One strategist says tech valuations remain too high. Nvidia rebounded about 5% in Friday premarket, and Nasdaq-100 futures recovered somewhat, which hints at a bounce. Nvidia's Nov 17 results are the next major event. After a drop this large, volatility is likely to stay high in the short term. The fund is concentrated in a few megacaps and has a high beta.
News behind the analysis
- Nasdaq Plunges 1,421 Points in Massive Tech Rout: Stock Market TodayThe Nasdaq fell 5.5% to 24,315, entering correction territory. Tech was the biggest decliner among the 11 S&P 500 sectors, and memory names Micron and Sandisk fell sharply.
- Nvidia Loses $440 Billion as Tech Stocks Crash After US Midterm ElectionsNvidia lost about $440B in market value and the Nasdaq Composite fell 5.52%. AI infrastructure names also dropped sharply.
- Wall Street's tech selloff intensifies as Nasdaq drops more than 5%Big Tech, semiconductor, software and neocloud stocks fell. One concern is that Big Tech capex growth may peak sooner than expected.
- Fortune Tech: Why tech stocks suffered their biggest selloff in yearsThe selloff covered chips, data centers and software. It reversed Wednesday's post-midterm rally.
- Tech stocks tumble as election rattles AI tradeInvestors fear an AI slowdown. A Texas governor-elect promised a moratorium on new data-center buildouts, and retail investors were heavy sellers.
- Wall Street tech selloff erases $3 trillion, Nasdaq plunges 5.5% in AI retreatThe selloff erased nearly $3T from S&P 500 market value. Nasdaq-100 futures recovered somewhat the next day.
- Stocks plunge as election outcome and AI worries crush tech sharesThe Nasdaq 100 fell 6.3%, erasing $2.3T in market value. Chip stocks led the losses.
- Stock Market Today, Nov. 5: Nvidia Slides on AI Chip Selloff as Election Uncertainty WeighsNvidia closed at $181.60, down 9.26%. The next catalyst is its Nov 17 quarterly update.
- What Sent NVIDIA Stock Lower?Nvidia had no company-specific news. It fell with AI chip stocks on post-election fears of a data-center slowdown, and Qualcomm gave a light outlook.
- NVIDIA Claws Back Losses After $400 Billion Bloodbath, but the AI Scare Isn't OverNvidia rebounded nearly 5% in Friday premarket. Raymond James says the AI investment cycle is intact, while scrutiny of data-center construction is still a worry.