MetraviseNasdaq sinks -5.49% as AI sell-off hits Wall Street
In brief
- Tech slides: The Nasdaq Composite fell -5.49% and the S&P 500 -4.32% as an AI and chip-led selloff hit Wall Street.1
- Election weighs: Investors weighed what Democrats' midterm wins mean for data centers, largely erasing the prior day's gains.1,2
- Jobs in focus: S&P 500 futures were up +0.46% this morning as traders awaited the October payrolls report.3
What it means
eToro analyst Jakub Rochlitz said the market now sees the AI infrastructure buildout as slower and more expensive.1 Investors have also raised concerns about the borrowing and spending behind the boom, amid rising energy costs and uncertain returns.4 The pressure was concentrated in the AI trade rather than spread evenly across the market.
The day in review and where money is flowing
Over five sessions the Nasdaq 100 fell -9.55%, and the Metravise Portfolio moved -9.04% in the last session. Over a month, Consumer Discretionary leads Metravise sectors at +7.6 pts versus the S&P 500, while Technology trails at -6.9 pts. Within the leader, Recreational Vehicles, Home Improvement Retail and Restaurants are ahead by +21.7 pts, +16.1 pts and +15.5 pts.
AI: The power bill
Rochlitz said rising electricity prices turned power-hungry data center construction into a political issue during the midterm campaign.1 Not every tech report disappointed: Cloudflare shares rose after-hours as its current-quarter guidance topped expectations.5
Market mood
The VIX jumped +58.76% to 26.64, in the tense zone, a sign of sharply higher demand for protection. The equity put/call ratio was 0.44, below its five-day average of 0.59, suggesting options traders did not rush into puts.
What to watch today
Times are US Eastern (ET).
Reported last night
- NETCloudflare, Inc. Class A common stock, par value $0.001 per shareEPS above the estimate (+10.6%)
- MTDMettler-Toledo InternationalEPS above the estimate (+3.9%)
- AEEAmeren CorporationEPS above the estimate (+5.5%)
- GHGuardant Health, Inc.EPS above the estimate (+7.8%)
- GMEDGLOBUS MEDICAL INCEPS above the estimate (+2.8%)
- CPTCamden Property TrustEPS above the estimate (+1288.9%)
- 23:15US index futures (futures, not the session)Versus the prior close, S&P 500 futures are +0.46% and Nasdaq 100 futures +1.36%; these are futures prices, not the session. The US session opens at 9:30 ET.
- Fri 08:30Employment report (nonfarm payrolls, unemployment rate)ZipRecruiter economist Nicole Bachaud said the economy needs fewer added jobs to keep employment stable as fewer people are available to work.6
- Fri 12:15Fed Vice Chair for Supervision Michelle W. Bowman speaks — Supervision and RegulationRemarks on supervision and regulation are generally read for hints about the direction of bank rules.
Metravise Portfolio
- PortfolioThursday change−9.04%
- —No entries or exits in the last session.
Metravise is an educational research platform — this bulletin is not investment advice. News summaries are based on the footnoted sources; numbers are Metravise data. Past performance is not indicative of future results.
Sources
- Nasdaq tumbles 5%, Dow plunges more than 1,800 points — Fox Business · Nov 6
- Stocks tumble, erasing post-midterm gains as markets weigh future of AI build-out — The Washington Post · Nov 6
- Stock futures fall after Nasdaq correction; Japan's Nikkei 225 enters bear market: Live updates — CNBC · Nov 6
- Trump blames Democrat midterm wins for stock market drop and 401(k)s — Fox Business · Nov 6
- Stocks making the biggest moves after hours: DraftKings, Cloudflare, Airbnb, Atlassian & more — CNBC · Nov 6
- The October jobs report is out Friday. Here's everything to expect — CNBC · Nov 6