Nasdaq 100: −4.91%
S&P 500: −2.68%
My portfolio: −0.50%
Market pulse
American equities finished lower as an initial post-election rally gave way to heavy selling in technology and semiconductor shares. Between the closes on 30 October and 6 November, the Nasdaq 100 declined 4.91%, while the S&P 500 lost 2.68%. The weekly figures concealed a particularly sharp reversal: on Thursday alone, the Nasdaq 100 fell 6.36%, the S&P 500 dropped 4.36%, and the Philadelphia Semiconductor Index lost 12.2%. Friday’s recovery reduced the damage but left both major indices substantially lower for the week.
The implications of the U.S. midterm elections for AI infrastructure became the central concern. Democratic victories in Congress and key states, including Texas and Georgia, raised fears that tighter scrutiny, permitting restrictions or temporary moratoriums could slow data-centre construction. That threatened the growth assumptions supporting chipmakers, computing providers and associated power and equipment suppliers. Existing concerns about financing and investment returns intensified the reaction. Oracle’s announcement on Monday that it would raise $20 billion through share and bond sales highlighted the financial demands of expansion, while Qualcomm’s disappointing smartphone-chip sales added pressure to the semiconductor sector on Thursday.
The macroeconomic backdrop produced competing signals. Wednesday’s initial relief rally was supported by reduced election uncertainty and a sharp decline in oil prices as investors anticipated greater pressure for de-escalation in Iran. WTI crude fell 8.3% that day, easing inflation concerns while hurting energy producers. Friday’s employment report then showed 165,000 jobs added in October, compared with 65,000 expected, while unemployment fell to 4.1%. The stronger labour-market figures reinforced expectations of further Federal Reserve tightening. Technology shares nevertheless recovered some of Thursday’s losses, with the Nasdaq 100 gaining 1.35% on Friday.
Crowd vs. price
The week’s reversals showed how sensitive AI valuations had become to assumptions about the pace, financing and eventual returns of infrastructure expansion. Investors were already questioning the cash demands of rapid construction; the election introduced a different concern—that political constraints could delay the projects supporting future revenue growth. Strong operating results offered limited protection when forward-looking indicators disappointed, as Palantir’s earnings reaction demonstrated. Friday’s rebound showed continued willingness to buy after sharp declines, but it recovered only part of the losses across the sector. The distinction between demand for AI and the timing of returns to shareholders remained central.
Holdings & Watchlist Notes
Nvidia: −8.80%
Nvidia declined as investors reassessed the outlook for AI infrastructure spending following the election. The shares fell 3.17% on Wednesday and 9.26% on Thursday as concerns about data-centre construction spread across semiconductor suppliers. A report on 5 November that approximately 600,000 H200 chips were stored in Hong Kong awaiting large-scale Chinese import approval highlighted additional uncertainty over shipments and access to Chinese demand. The broad semiconductor recovery on Friday lifted Nvidia by 2.78%, but the rebound recovered only part of the week’s losses.