Market News

US Stocks Crash as Election Fallout Hits Wall Street – Nasdaq Plunges 5.52%

US equity markets suffered heavy losses in trading yesterday as investors continued to digest the implications of the Democrats gaining control of Congress following the mid-term elections. Concerns over potentially tougher government regulation weighed heavily on sentiment, particularly in the technology sector, which led the market sharply lower. The Nasdaq plunged 5.52% to close at 24,315, while the broader S&P 500 dropped 4.36% to finish at 7,353. The Dow Jones also suffered significant losses, falling 3.44% to close at 51,523.

US Treasury yields moved sharply lower as investors sought the relative safety of government bonds following the equity market…

Nasdaq futures rebound after a 16.6% plunge. Is this a dip to buy or a rally to sell?

Nasdaq futures have bounced nearly 800 points from a major historical support zone, but Wall Street's earnings mood remains defensive. With another important economic report approaching, Friday could provide a crucial test of whether buyers are returning or the bearish trend is simply taking a break.

November 6, 2026 | Nasdaq-100 E-mini Futures (NQ)

Nasdaq-100 futures have fallen 5,250 points, or 16.61%, from their October high in just 23 trading sessions. Yet the latest decline has brought NQ into a particularly interesting support zone around 26,350-26,400, where buyers have finally responded.

Is this a dip worth buying? Possibly. But the price recovery,…

The Nasdaq 100 fell 6.36% on Thursday, its worst day since 2020, as investors sold everything from memory and storage stocks to chip equipment makers and data-center suppliers. The Nasdaq Composite fell 5.52%, the S&P 500 dropped 4.35%, and the Dow lost 1,833 points. All three had their worst day since April 2025.

A day after the Dow surged nearly 1,600 points, it gave back the entire gain and then some. The Russell 2000 fell 4.45%, and all 30 Dow stocks closed lower. The selling was most intense in the AI trade, but by the close it had spread well beyond it.

Investors continued to weigh what the midterm results could mean for the pace of the AI data-center buildout. Treasury yields moved lower and gold caught a bid as stocks sold off.…

• Nasdaq 100 suffers worst day since 2020
• Magnificent 7: What are the technicals telling traders for each of those companies him
• WTI crude oil settles at $90.52, up 2.72% as buyers defend key support
• Non-farm payrolls preview: October numbers show a skew
• Europe Close: AI and chip liquidation drags equities lower in US, but Europe is mixed.
• Bitcoin falls with risk off sentiment. The price is testing a key swing area target.
• The market is telling the hyperscalers it's happy about a slower data center buildout
• Crude oil tests the key confluence area and finds willing buyers
• Fed's Barkin: Gradual pace of hikes "makes sense"
• Marco Rubio ‘on resignation watch’ - report
• Fed's Hammack: Gradual rate hikes are the best way to get inflation to target
• US Q3…

In the video above, I take a look at the Magnificent 7 as the broader U.S. indices sell off sharply. The S&P 500 is down around 4%, the Nasdaq Composite is down 5.10%, and the Nasdaq 100 is down 5.75%. All seven stocks are lower, but only two are falling more than all three indices. Those two are Nvidia and Tesla.

Apple and Alphabet hold up best

Apple leads the group with a decline of 1.27%, followed by Alphabet, down 1.53%. Amazon is down 2.49%, Microsoft is lower by 3.64%, and Meta is down 3.87%. All five are outperforming both Nasdaq indices, although Apple and Alphabet are doing so by a much wider margin than Microsoft and Meta.

For Apple and Alphabet, the question is whether that relative strength shows up at support. Can buyers lean…

I spoke to Reuters earlier today about the state of markets and my comments boiled down to this:

"There are two ​paths Trump can go down - he can double down on unpopular trade ​wars or he can listen to the electorate and change course," said Adam Button, chief currency analyst at investingLive.

That's the crossroads we are at right now and I think it shows some of the tension in markets.

An early sign we got was on replacing Pete Hegseth:

“No, I think he’s doing a very good job.”

Of course, Trump has said that many times before replacing staff, so I wouldn't take it as the final word. It's worth noting though that George H. W. Bush fired Donald Rumsfeld the day after the 2006 midterms, in large part due to the unpopular Iran war.

Trump did…

U.S. crude oil futures settled at $90.52 a barrel on Thursday, up $2.40 or 2.72% from Wednesday’s $88.12 settlement. The rebound follows a drop of more than 8% on Wednesday, when the U.S. midterm results raised hopes that a Democratic-controlled Congress would increase pressure on the Trump administration to end the war with Iran.

Gulf shipping risk is back in focus

On Wednesday, Senate Democratic leader Chuck Schumer said Democrats would seek to end the war, pointing to Congress’s control over spending. By Thursday, traders were again weighing the risk to oil shipments. Reuters reported that at least five vessels had reported incidents in the Gulf since Sunday, citing UK Maritime Trade Operations. Iran’s foreign minister also spoke with…

The price of oil at $89 isn't that big of a problem for consumers or businesses. Crude has come down dramatically this week and a big part of that is expectations that Trump or Congress will find a way to open Hormuz and end the Iran war.

That remains to be seen but what hasn't changed is ultra-wide crack spreads. Normalized gasoline would be selling around $3.60-3.75 right now with diesel slightly higher with cracks around $22 (gasoline) and $30 (diesel). Because of all the refining tightness, gasoline has about a 60-cent premium and diesel at about +$2.25.

That's proven to be a big problem electorally and won't get better so long as the wars in Ukraine and Iran continue. If anything, they will worsen in time on potentially escalated…

Sellers have been leaning against retracement levels.

Going back to last week, the rally in the AUDUSD stalled near 0.7065, the 50% retracement of the move down from the September 9 high. Staying below, kept the seller in play. 

This week - on Monday - the pair set its high for the week as it tested the 100-hour and 100-day moving averages (blue lines on the chart below), both near 0.7030 at the time. The 38.2% retracement of the same move was just below at 0.7025.

The price moved below those levels and reached 0.6954 yesterday before snapping back higher as US stocks rallied and the market shifted back toward risk-on after the US elections. That bounce took the pair back toward 0.7025, where sellers leaned against the broken 38.2%…

As London and European traders head home, the main story is the liquidation in US stocks. AI and chip names are taking the hardest hit as investors weigh the path forward after the US midterm elections. Yesterday, the Dow surged nearly 1,600 points even as parts of the AI trade struggled. Today, the Dow has given back most of that gain, the Russell 2000 is down more than 4%, and the Nasdaq 100 is down more than 5%. The selling has reached beyond the chipmakers into the power and infrastructure names tied to the AI buildout.

The Nasdaq indices have bounced off their lows, but the Dow and Russell are still right on theirs. For the S&P 500, the September low near 7,511 is the first level buyers need to get back above to take some pressure…

The rout is on in stock markets.

The Nasdaq Composite broke the 200-day moving average at the open and it's been non-stop selling from there. The index has now cut through the July low and is trading at the worst levels since April.

Nvidia is a major drag on the index and is now down 8.75% while Micron is getting destroyed, down 16.4%. I wrote about the reasons for the selloff in MU earlier. 

Meanwhile, shares of Apple are being seen as something of a safe haven as they've avoided the AI boom. They're down just 0.5% after hitting a 52-week high earlier. Berkshire Hathaway is also up 0.6% as its huge cash pile is seen as a possibility to deploy in a downturn. 

Yesterday we saw large gains in Microsoft and Amazon but those have faded to a large…