EL7.AI
Macro EconomyMedium•5 November 2026•
1 min read

AI Stocks Selloff Deepens as US Treasuries Rally Following Midterm Results

Key Facts

1Artificial-intelligence stocks continued to weaken globally as investors digested the U.S. midterm election results.
2U.S. Treasury yields hit eight-week lows following the Democratic sweep in the midterm elections.

Artificial-intelligence stocks continued to weaken globally as investors digested the results of the U.S. midterm elections. The Wall Street Journal reported that U.S. Treasury yields hit eight-week lows following the Democratic sweep in the elections.

The market reaction represents a significant repositioning as investors rotated into the safety of government bonds, creating headwinds for high-growth AI-related equities. This shift follows economic data from November 4, 2026, which showed the ISM Services PMI at 54.5, down from the previous reading of 54.9.

Market attention now turns to the Non-Farm Payrolls report scheduled for release on November 6, 2026. On the same day, several Federal Reserve officials, including Logan, Williams, Musalem, and Bowman, are set to deliver speeches that may provide further policy guidance.