Market Analysis
Why Did Stocks Rise November 5? Midterms, Oil
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Why Did Stocks Fall Nov 6? AI Selloff, Jobs
StockCram Editorial3 min readWall Street had its worst day in over a year as an AI-stock selloff hit before the October jobs report. See what drove the Nasdaq and S&P 500 lower.
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- •US stocks tumbled on Thursday, November 5, with the S&P 500 down 4.36% to 7,353.73 and the Nasdaq down 5.52%, as worries that Democratic midterm wins could slow AI data-center building hit tech shares.
- •The Philadelphia Semiconductor Index fell more than 12% and Nvidia fell about 9%, making it the chip index's second-worst day on record.
- •The Dow lost 1,833 points, or 3.44%, to 51,523.06, and all 11 S&P 500 sectors ended lower.
- •The 10-year Treasury yield was 4.90% on November 5, and traders don't fully price another Fed rate hike until March.
- •The October jobs report arrives at 8:30 a.m. ET on Friday, November 6, with forecasts of about 59,000 to 65,000 new jobs versus 29,000 in September.
Deep DiveToday's Market Movers
Tech rout drags the Nasdaq down 5.5% and the S&P 500 down 4.4%
What Happened
US stocks fell sharply on Thursday, November 5, with the S&P 500 down 4.36% to 7,353.73 and the Nasdaq down 5.52% to 24,315.00, as technology shares led the drop. Investors worried that the Democrats' midterm wins could slow the building of data centers for artificial intelligence. Reuters reported that tech stocks in the S&P 500 fell 7.3%, and about $2 trillion in value vanished from the Nasdaq.
Why It Matters
It was the worst day for US stocks since April 2025. It shows how much of the market's value now rests on AI spending, a debate we cover in Are We in Another AI Bubble? For a past example of a tech-led drop, see the Dot-Com Bubble recovery timeline. See our glossary for terms like correction.
Market Impact
Equities
S&P 500 -4.36% to 7,353.73; Dow -3.44% (-1,833 points) to 51,523.06; Nasdaq -5.52% to 24,315.00. All 11 S&P 500 sectors fell.
Rates
Traders now see fewer Fed rate hikes ahead, with the next hike not fully priced until March.
FX
US dollar little changed; the Australian dollar fell about 1%, the biggest drop among major currencies.
Commodities
Little direct effect; oil moved on Middle East news (see below).
Chip stocks suffer their second-worst day on record
What Happened
The Philadelphia Semiconductor Index, which tracks major US chip makers, fell more than 12% on Thursday, its second-biggest one-day drop on record, as AI data-center worries hit the sector. Nvidia fell about 9%, SanDisk dropped 22%, and Micron, AMD and Marvell each lost about 17%. The Nasdaq-100 slipped into a correction, meaning it is down at least 10% from its recent high.
Why It Matters
Chip makers sell the hardware behind AI data centers. A slowdown in that building hits their sales hopes directly. Learn more about how stocks work.
Market Impact
Equities
Philadelphia Semiconductor Index fell more than 12%. Nvidia fell about 9%. SanDisk fell 22%. Micron, AMD and Marvell each fell about 17%.
Rates
No clear effect.
FX
No clear effect.
Commodities
No clear effect.
Futures steady Friday as traders wait for the October jobs report
What Happened
Stock futures wobbled early Friday, November 6, after Thursday's selloff, with S&P 500 futures up 0.3% and Nasdaq-100 futures up 1% ahead of the October jobs report. The Labor Department will release the report at 8:30 a.m. ET. Economists expect the US added about 59,000 to 65,000 jobs, up from 29,000 in September, and expect the unemployment rate to hold at 4.2%.
Why It Matters
Jobs data helps set the path for interest rates. Recent labor data has been firmer than feared, which keeps the Fed focused on inflation.
Market Impact
Equities
Early Friday: S&P 500 futures +0.3%, Nasdaq-100 futures +1%, Dow futures -0.7%. Stocks are on track for a steep weekly loss.
Rates
The 10-year Treasury yield was 4.90% on November 5, up 0.01 points on the day and down 0.39 points over the past month.
FX
No clear move reported before the data.
Commodities
Brent and WTI crude were trading below $100 a barrel.
Falling oil prices and stock stress cool bets on more Fed rate hikes
What Happened
Interest-rate traders on Thursday priced fewer Fed rate hikes than before, according to Reuters. They don't expect another hike until March, and expect about 40 basis points of tightening in total. Oil has dropped from its recent highs, which eases inflation worries, though Middle East tensions still move prices day to day.
Why It Matters
Lower oil and weaker stocks can make central banks slow down on rate hikes. Higher rates tend to weigh on stock prices, though the link is not simple, as why stocks can rise when interest rates are high explains. See what an interest rate is.
Market Impact
Equities
Lower rate expectations did not stop the tech selloff.
Rates
Markets don't fully price another Fed hike until March, and see about 40 basis points (0.4 percentage points) of tightening in total.
FX
US dollar little changed on Thursday.
Commodities
One market wrap put Brent up 3.9% to $98.29 on Thursday after tanker attacks near the Strait of Hormuz. Friday reports had crude below $100.
Amazon reverses early gains as yields and tech selling take over
What Happened
Amazon.com shares fell 2.19% to $260.21 on Thursday after rising earlier in the session, as rising Treasury yields and heavy selling in technology stocks erased the early gains. Costco bucked the trend and rose 1.24%.
Why It Matters
A drop in one of the market's largest companies pulls on the broad indexes. It shows the selling reached beyond chip makers.
Market Impact
Equities
Amazon closed at $260.21, down $5.82 or 2.19%, after an early rally. Costco rose 1.24%.
Rates
Rising yields were cited as a pressure on tech shares.
FX
No clear effect.
Commodities
No clear effect.
Historical Perspective
Similar Event
The April 2025 market selloff was the last time US stocks fell as hard in one day as they did on November 5, 2026.
What Happened Then
In sharp one-day drops like that one, markets often stayed volatile for days or weeks as investors reassessed risks. Past outcomes vary and don't predict what comes next. For a longer view, see how the market recovered after Black Monday in 1987.
What to Watch Next
- →November 6, 8:30 a.m. ET: US Employment Situation report for October (prior: +29,000 jobs in September, unemployment rate 4.2%; forecast about +59,000 to +65,000, 4.2%)
- →November 6, morning ET: University of Michigan preliminary November consumer confidence and inflation expectations (prior: see the October final reading)
- →November 10, 8:30 a.m. ET: Bureau of Labor Statistics Real Earnings report for October (prior: September reading)
Analysis Confidence
Conviction Level:★★★★★
Key Uncertainties
The October jobs report had not been confirmed as released when this was written. Sources disagree on Thursday's oil move and on some exact index figures. Whether the AI selloff continues is unclear.
Sources
- • Reuters (via Investing.com) (2026-11-05)
- • Fox Business (2026-11-05)
- • The Motley Fool (2026-11-05)
- • CNBC (2026-11-05)
- • Yahoo Finance (2026-11-06)
- • Morningstar (2026-11-06)
- • FXStreet (2026-11-06)