US Stocks Slide as AI Rally Stalls on Chip Earnings and Infrastructure Fears

Key Facts

U.S. stocks plunged following disappointing earnings from two major chip designers. The Wall Street Journal reported that post-election fears regarding curbed data-center development triggered a rout in AI-related companies, stalling the recent market rally.

The downturn follows political uncertainty surrounding the Midterm Elections held on November 3, 2026, which raised concerns about future infrastructure spending. This selling pressure occurred despite positive labor market data on November 5, 2026, which showed initial jobless claims falling to 189,000, outperforming the forecast of 196,000.

Market attention now turns to the Nonfarm Payrolls report scheduled for November 6, 2026, with a forecast of 65,000 jobs. Several Federal Reserve officials, including Logan, Williams, and Bowman, are also scheduled to deliver speeches on the same day.