November 6, 2026
AI stocks stumbled, but the broader market held up better than the headlines suggest.
A sharp tech selloff sent the S&P 500 down 4.7% and the Nasdaq down 9.5%, while the Dow slipped just 1.6%. Despite the turbulence, 7 of 11 sectors gained ground, led by Consumer Staples (+3.6%). Technology plunged 14%.
Elsewhere, oil dropped 11.1%, gold climbed back above $4,000, and Treasury yields declined as investors sought safety.
Four Things That Moved Markets
1. Midterm Elections: A New Political Balance
Democrats captured both chambers of Congress, setting up divided government for the remainder of President Trump’s term. Stocks initially rallied 1.6% as election uncertainty faded.
Why it matters: Major legislation will now require bipartisan support, potentially limiting sweeping policy changes. Trade policy and the 2027 debt ceiling remain key issues to watch.
2. AI Stocks Take a Beating
Semiconductor stocks plunged as investors questioned the pace and profitability of AI expansion. Intel’s nearly 29% decline helped spark the selloff, while concerns about data-center restrictions and AI regulation added pressure.
Why it matters: Investors are asking tougher questions about whether massive AI investments can deliver—and how quickly.
3. Oil Prices Tumble on Middle East Optimism
Oil fell 11.1% as hopes grew for a diplomatic agreement that could reopen the Strait of Hormuz. Brent crude dropped below $100 per barrel.
Why it matters: Lower energy prices could ease inflation pressures and provide some relief for consumers and businesses.
4. The Economy Keeps Showing Strength
October manufacturing activity climbed to one of its strongest levels since 2022. Private employers added 86,000 jobs, beating expectations, while unemployment claims remained near yearly lows.
Why it matters: Despite Wall Street’s volatility, the broader economy continues to show resilience. Strong economic data also keeps the possibility of another interest-rate hike on the table.
The Bottom Line
The market’s biggest names may be struggling, but the broader economy is telling a more encouraging story. This week’s action is a reminder that diversification matters—and that market headlines rarely tell the whole story.
So what does this mean for your portfolio? Feel free to book a call – we’re happy to tell you!