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Why Did Stocks Fall Nov 6? AI Selloff, Jobs
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Why Did Stocks Fall Nov 2? AI Selloff, Oil Drop
StockCram Editorial4 min readCheaper oil lifted the Dow 0.4% on November 2, but another AI-driven tech selloff pushed the Nasdaq down 1.1% before the midterm elections.
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- •U.S. stocks ended mixed on Monday, November 2: the Dow rose 0.4% to 51,983.98, while the S&P 500 fell 0.5% to 7,541.40 and the Nasdaq dropped 1.1% to 25,164, as AI funding worries hit tech even as cheaper oil lifted other sectors.
- •Brent crude fell more than 7% to below $105 a barrel, its sharpest drop in about three months, after signs the U.S. and Iran may seek a diplomatic end to the war.
- •The ISM manufacturing index rose to 55.5 in October from 54.5, beating the 54.5 forecast, while the prices-paid gauge eased to 75.2 from 77.9.
- •The 10-year Treasury yield slipped to 4.906%, and the October jobs report arrives Friday, November 6, after September's gain of just 29,000.
Deep DiveToday's Market Movers
Oil plunges more than 7% on hopes of a US-Iran diplomatic deal
What Happened
Brent crude oil fell more than 7% on Monday to end below $105 a barrel, as hopes grew for a diplomatic end to the US-Iran war. Secretary of State Marco Rubio said President Trump would prefer to end the Iran war diplomatically, and reports pointed to a letter to Iranian leaders. Before the open, Brent was below $109 and U.S. crude (WTI) was back under $100.
Why It Matters
Oil feeds into fuel costs and inflation, so a sharp drop can ease pressure on prices and interest rates. Energy stocks, which earn more when oil is high, fell the most. For the mechanics, see why oil falls and stocks rise when war fears ease, and note that the drop rests on diplomatic signals, not a signed deal.
Market Impact
Equities
Energy stocks fell sharply; Dow, mid caps and small caps rose
Rates
Long-term Treasury yields eased; 10-year near 4.9%
FX
US dollar weakened as safe-haven demand faded
Commodities
Brent fell more than 7% to below $105 a barrel, its biggest drop in about three months
Nasdaq falls 1.1% as AI funding worries extend the tech selloff
What Happened
The Nasdaq Composite fell 1.1% to 25,164 on Monday as worries about AI funding extended the tech selloff, and the S&P 500 lost 0.5% to 7,541.40, after both indexes had been up earlier in the day. The S&P 500 had been up as much as 1.1% at one point. The Dow Jones Industrial Average gained 0.4%, or 213.67 points, to 51,983.98. Oracle fell about 8.8% after new funding plans, and Marvell agreed to buy Lumentum. Another debt raise by an AI company and fresh Anthropic financial details from its IPO filing kept investors worried about AI spending. The Nasdaq fell 2.9% on Friday, its worst day since early June.
Why It Matters
A few giant tech companies carry a lot of weight in the S&P 500 and Nasdaq. When worries about AI costs hit them, those indexes drop even while most other stocks rise. For both sides of the debate, read Are We in Another AI Bubble?
Market Impact
Equities
Nasdaq -1.1% to 25,164; S&P 500 -0.5% to 7,541; Dow +0.4% to 51,984
Rates
Little direct effect
FX
No clear tech-driven currency move
Commodities
No direct effect
Factory activity accelerates in October as ISM index hits 55.5
What Happened
The Institute for Supply Management's October manufacturing index rose to 55.5 from 54.5 in September, beating the 54.5 forecast. The ISM's production index jumped to 59.0, the highest since November 2021. The prices-paid gauge eased to 75.2 from 77.9, below the 77.5 forecast. Readings above 50 signal growth.
Why It Matters
Strong factory data suggests the economy is holding up, while still-high input prices keep inflation in focus for the Federal Reserve, which raised rates in September. See our glossary for more on how these indexes work.
Market Impact
Equities
Cyclical stocks such as industrials rallied
Rates
Long-term yields eased despite the strong report
FX
Dollar supported by firm growth but held back by softer prices
Commodities
No direct effect
Treasury yields mixed as oil tumbles; 10-year at about 4.9%
What Happened
The 10-year Treasury yield fell more than 2 basis points to 4.906% on Monday as oil tumbled, and the 30-year yield eased 3 basis points to 5.279%. The 2-year yield rose more than 1 basis point to 4.594%. One basis point is 0.01%. Treasury also set out its planned auction sizes for notes and bonds.
Why It Matters
Yields set borrowing costs for mortgages and companies. They tracked oil closely earlier this year, a link that faded in October as attention shifted to tech and AI. Curious why stocks can hold up when yields are high? See why stocks go up when interest rates are high.
Market Impact
Equities
Lower yields helped rate-sensitive, cyclical sectors
Rates
10-year -2 bps to 4.906%; 30-year -3 bps to 5.279%; 2-year +1 bp to 4.594%
FX
Dollar weakened as yields eased
Commodities
Oil's drop drove the move
Apple posts record $114.5 billion quarter; Palantir revenue nearly doubles
What Happened
Apple reported fiscal fourth-quarter revenue of $114.5 billion, up 12% from a year earlier, with earnings of $2.10 per share, up 14%. Palantir reported revenue of $2.31 billion, up 96% and above the $2.18 billion forecast, and earnings of $0.44 per share versus $0.41 expected. Palantir shares fell $5.77 to $178.34 on Monday.
Why It Matters
Both reports landed during the tech selloff and give a read on whether AI and device demand are holding up. See our guide to earnings reports for how company results move stock prices.
Market Impact
Equities
Apple closed down 1.8% before its report; Palantir fell to about $178 despite beating forecasts
Rates
No notable effect
FX
No notable effect
Commodities
No direct effect
Historical Perspective
Similar Event
Oil prices have swung sharply on Middle East headlines before, such as the 2022 spike after Russia invaded Ukraine and the pullback that followed.
What Happened Then
In 2022, oil jumped above $120 and then fell back within weeks. Stocks rose when oil fell and inflation fears eased, but those moves often reversed as new headlines arrived. For a longer view, see what happens to stocks during wars, or learn more in our basics guide.
What to Watch Next
- →November 3, all day: U.S. midterm elections, with results due after polls close (prior: the last U.S. midterms were held in November 2022)
- →November 3, after the close: AMD third-quarter earnings (prior: second-quarter revenue of $11.54 billion, up 50.1%)
- →November 4, 10:00 a.m. ET: ISM Services PMI for October (prior: 54.9 in September)
- →November 6, 8:30 a.m. ET: October jobs report (prior: +29,000 jobs in September, unemployment 4.2%)
Analysis Confidence
Conviction Level:★★★★★
Key Uncertainties
Closing figures differ slightly between outlets, so index levels are rounded and based on the official close. Oil's drop rests on diplomatic signals, not a signed deal. After-hours reaction to Apple and Palantir is not yet confirmed. Midterm results could add volatility.
Sources
- • Associated Press (via KRMG) (2026-11-02)
- • Investing.com (Reuters) (2026-11-02)
- • CNBC (2026-11-02)
- • Yahoo Finance (2026-11-02)
- • CappNotes (2026-11-02)
- • investingLive (ISM data) (2026-11-02)
- • Apple Newsroom (2026-11-02)
- • MarketBeat (2026-11-02)