S&P 500 Loses 2.68% in Week to Nov 6, 2026 as AI Stocks Sell Off

Key takeaways

• The S&P 500 fell 203.21 points, or 2.68%, to 7,376.86 in the week to the Friday, Nov 6, 2026 close (21:00 UTC), from 7,580.07 on Oct 30, according to Yahoo Finance and the Associated Press.
• The Nasdaq Composite lost 3.37% to 24,579.42 and the Russell 2000 2.05% to 2,754.11, while the Dow Jones Industrial Average slipped 0.94% to 51,285.73, according to Yahoo Finance data.
• Thursday, Nov 5 did most of the damage: the Nasdaq fell 5.52% and entered correction territory as AI and chip stocks sold off on fears that the Democratic midterm sweep would slow data-center construction, CNBC reported.
• The Cboe Volatility Index (VIX) rose 32.03% on the week to 25.64 at its 21:15 UTC close on Nov 6, after touching 28.36 on Thursday, according to Yahoo Finance.
• October payrolls rose by 165,000 and unemployment eased to 4.1%, the Bureau of Labor Statistics said on Nov 6; the 10-year Treasury par yield ended the week at 4.860%, down from 4.940%.

Week in review

Wall Street swung from a post-election rally to its sharpest one-day sell-off since April 2025 and finished the week lower. The S&P 500 had its worst week since June, Yahoo Finance reported, while the price-weighted Dow held up best of the major averages. For other regions, see Asian and global market closes; the daily detail is in the brief for Thursday, Nov 5.

Index highs and lows are intraday levels from Yahoo Finance daily data. Treasury figures are the official end-of-day par yields, based on bid-side prices at about 15:30 New York time, so the yield high and low refer to daily closing levels. By sector, the Technology Select Sector SPDR ETF (XLK) fell 8.23% on the week to $164.74 and the Energy Select Sector SPDR ETF (XLE) dropped 12.00% to $61.62, according to Yahoo Finance closing data.

Day by day

• Monday, Nov 2: The S&P 500 fell 0.51% to 7,541.40 as chip and AI stocks slid; CNBC reported Marvell Technology agreed to buy Lumentum in a $115 billion deal, and Oracle dropped 8.76% after filing to raise $20 billion in stock and bonds.
• Tuesday, Nov 3: On Election Day the S&P 500 rose 0.36% to 7,568.92 as chipmakers rebounded; the BLS reported September job openings of 7.5 million, and AMD posted third-quarter revenue of $13.4 billion after the close.
• Wednesday, Nov 4: The Dow jumped 3.03% to 53,356.12 after Democrats won control of both chambers of Congress, according to CNBC and AP, while oil fell more than 8%.
• Thursday, Nov 5: The Nasdaq sank 5.52% to 24,315.00 and the S&P 500 4.36% to 7,353.73; CNBC said all three major averages had their worst day since April 2025.
• Friday, Nov 6: The Nasdaq rebounded 1.09% and the S&P 500 0.31%, while the Dow fell 0.46%, after a stronger-than-expected jobs report.

What drove it

Midterm results and the AI build-out trade

The election first lifted stocks. AP reported on Nov 4 that investors read a Democratic Congress alongside a Republican White House as gridlock that lowers the chance of sweeping policy changes. A day later the mood turned. CNBC reported that investors pulled back from technology on fears the new Congress and state governments would slow AI data-center construction, noting Sen. Bernie Sanders' call for a national moratorium. On Friday, CNBC reported that Texas Gov.-elect Gina Hinojosa said data-center operations should stop until protections for Texans are in place. Yahoo Finance cited a Goldman Sachs estimate that about 45% of planned US data-center capacity faces possible restrictions.

Chip stocks: valuation, not earnings, say some analysts

Nvidia fell 8.80% on the week to $186.64 and AMD 11.05% to $449.04, according to Yahoo Finance closing data, even though both rebounded on Friday. Microchip Technology fell another 10.02% on Friday to $58.35 after weak third-quarter guidance, CNBC reported. Bank of America analyst Wamsi Mohan said the sell-off in AI-exposed hardware reflected lower valuation multiples rather than lower earnings estimates, according to CNBC. Stuart Clark of Quilter told CNBC that heavy concentration in a few large tech and chip stocks means their weakness quickly drags down the Nasdaq and S&P 500.

A strong jobs report and the Fed

The BLS said nonfarm payrolls rose by 165,000 in October, with August and September revised up by a combined 84,000. Average hourly earnings rose 0.4% on the month and 3.1% over 12 months. Economists surveyed by Dow Jones had expected 59,000 jobs, CNBC reported. Yahoo Finance reported that the data firmed expectations that the Federal Reserve will raise rates in December. The Fed held its target range at 3.75% to 4.00% on Oct 28. The 2-year yield rose to 4.51% on Friday from 4.46% on Thursday, according to the Treasury.

Oil and energy

Crude fell sharply on hopes that the Iran war could end. CNBC reported that WTI fell about 12% for the week to around $91 and Brent about 16% to just above $98. Energy shares fell with crude, as the XLE figures above show. Monday's oil slide coincided with gains in consumer and housing names such as Home Depot, CNBC reported on Nov 2. For background, see how oil price shocks feed into inflation and interest rates.

Political & policy watch

• Congress: Democrats won majorities in the House and Senate, CNBC and AP reported. President Trump said he fully supports the AI build-out and blamed Democrats for Thursday's drop, according to CNBC.
• Data centers: No federal legislation restricting data centers had been introduced in the reports Bullquill reviewed; state-level statements, such as Hinojosa's in Texas, are the clearest signal so far.
• Iran: Oil traders were weighing the risk of renewed US-Iran conflict against diplomacy, CNBC reported; no agreement had been announced.
• ASEAN angle: A US chip sell-off and swings in crude matter for Southeast Asian electronics exporters and oil importers; CNBC reported that Asia-Pacific markets fell sharply on Friday. See what the US midterm results mean for Asian markets.

What to watch next

• Tuesday, Nov 10, 13:30 UTC: October consumer price index (CPI), according to the BLS release schedule.
• AI and chip stocks: whether Nvidia, covered in its slide below the 200-day average, and other chipmakers hold Friday's rebound.
• Dec 8-9: the next Federal Reserve FOMC meeting, with a new Summary of Economic Projections, according to the Fed's calendar.
• Dec 10, 13:30 UTC: November CPI, according to the BLS.

Risk checklist for readers

• A "correction" usually means a fall of 10% or more from a recent peak; it describes past moves, not what comes next.
• The Nasdaq and S&P 500 are heavily weighted toward a handful of large tech and chip companies, so compare them with the Dow, the Russell 2000 and sector data.
• A VIX in the mid-20s signals higher expected 30-day swings in the S&P 500; it measures expected volatility, not direction.
• Monthly payroll figures are first estimates and are often revised, as August and September were this week.
• Political statements about regulation can move prices before any bill exists; check official texts and statements.
• Oil quotes differ by contract and time; note the contract month and settlement time when comparing prices.

This article is for information only and is not investment advice.