US Market Brief: Saturday evening, 7 November 2026
Market brief
Updated 22:20, New York time
The S&P 500 rose 0.71% and the Nasdaq Composite gained 1.4% while the Dow Jones Industrial Average slipped 0.08%, and the Philadelphia Semiconductor Index climbed 4.2% after its biggest one-day drop since April 2025.
The Nasdaq 100 plunged more than 6% on Thursday, wiping $3 trillion off its market capitalization, after Democratic midterm victories raised fears AI data center projects could be delayed or scaled back.
US employers added 165,000 jobs in October, more than double the 65,000 expected, and markets priced an 85% probability of a quarter point rate increase at the Fed's December 8-9 meeting.
Airbnb rose after guiding full-year revenue to grow in the "high teens" and authorizing as much as $12 billion more in buybacks, while DraftKings fell as much as 29% after sharply cutting its profit forecast.
Fed officials Beth Hammack and Thomas Barkin made the case for a gradual approach to raising interest rates, with Hammack saying policy will need to move to a restrictive stance to bring inflation back to 2%.
The S&P 500 rose 0.71% and the Nasdaq Composite gained 1.4% while the Dow Jones Industrial Average was down 0.08%, after trillions of dollars of world stock market value was wiped out on fears that Democratic election victories would bring tighter US regulations for the AI industry. The Philadelphia Semiconductor Index was up 4.2% after its biggest one-day drop since April 2025, Nvidia rose 3%, and AMD, Intel and Micron Technology were up between 5.5% and 10%. Tesla rose 2%.
In a November 5 research note, Bank of America rates strategist Ralph Axel wrote that if oil prices continue to rise over the next 3-6 months, "we could see significantly higher interest rates." The report said US two-year swap rates rose a cumulative 196 basis points on days oil gained ground during 2026 through November 4, but fell 83 basis points on other days.
IREN shares rebounded 18% in Friday's premarket action after the neocloud company reported earnings showing a near tripling of AI cloud revenue and said it had secured a five-year contract. Cloudflare rose 15% after its fastest sales surge in nearly four years, and Airbnb rose nearly 12% after better-than-expected quarterly results and a raised full-year outlook. DraftKings fell 21% after cutting its outlook, Atlassian fell 13% on a disappointing revenue outlook, and Lyft fell nearly 8% after earnings were hit by legal, tax and regulatory reserve charges and settlements.
All three major US averages fell sharply on Thursday, with the Nasdaq Composite down 5% below 24,300 and in correction territory at its lowest level since April, while the S&P 500 fell over 4% to three-month lows. In the evening session JFrog rose 20.9%, Cloudflare 14.1% and Airbnb 10.6% after earnings, while DraftKings fell 23.1% and Atlassian 17.6%. Unity Software rose 6.8% on talks of being acquired by Silver Lake.
Federal Reserve officials Beth Hammack and Thomas Barkin made the case for a gradual approach to raising interest rates, signalling policymakers remain focused on bringing inflation under control. Hammack said she expects monetary policy will need to move to a restrictive stance to bring inflation back to 2% in a timely manner. Their comments were the first from Fed officials after Democrats won control of Congress and made gains in state-level elections.
AppLovin shares spiked to three-month highs after the software company beat earnings and guidance, even as the Nasdaq-100 sold off more than 6%. The segment reviewed several analyst upgrades for AppLovin and discussed its outlook amid the steep technology selling.
The morning briefing listed analyst rating actions, including Morgan Stanley raising its rating on Cinemark and cutting Cisco Systems. Barclays cut Skyworks, Truist Securities cut Nike and Deutsche Bank raised JetBlue, while Morgan Stanley also raised Acadian Asset Management.
Airbnb said it expects full-year revenue to grow in the "high teens" and lifted its forecast for full-year adjusted EBITDA margin to about 36%, and announced a new repurchase authorization of as much as $12 billion more in stock; shares jumped more than 10% in extended trading. Moderna boosted its full-year guidance and posted its first quarterly profit since 2024 as Covid vaccine sales rebounded, and it anticipates filing a US marketing application for its cancer drug intismeran by the end of the year. DraftKings shares fell as much as 29% after the company sharply reduced its profit forecast because of continued investment in its prediction-market product.
CoreWeave shares traded higher Friday in a recovery after falling 9.8% on Thursday as the Dow Jones Industrial Average shed more than 1,800 points; its earnings are due Tuesday. Airbnb shares rose after the company said it is back in "growth mode" following its fastest revenue gain in three years, with full-year revenue expected to grow in the "high teens" and a new repurchase authorization of as much as $12 billion more in stock. Monster Beverage shares slumped after the energy drink distributor reported a miss on third-quarter gross margin while adjusted earnings per share was in line, after the stock had surged about 25% this year through Thursday's close.
The article says the Federal Reserve raised rates by 25bps at its September meeting, the first federal funds rate increase in over three years, and several Fed members have suggested rates may need to move higher. It says recent manufacturing and services data showed growth at higher-than-expected levels and that the Atlanta Fed's GDPNow estimate projects third-quarter GDP growth of 3.7%. It also says the US and Iran remain at an impasse in ending the war and fully reopening the Strait of Hormuz.
The Nasdaq 100 plunged more than 6% on Thursday, wiping $3 trillion off its market capitalization, after Democratic victories in the US midterm elections raised fears that AI data center construction projects could be delayed or scaled back, and Wall Street staged a rebound on Friday. For the week, AppLovin gained 71.21% after results that comfortably beat expectations, Booking Holdings rose 8.46% on strong adjusted earnings, and IDEXX Laboratories jumped 22.65% after beating earnings expectations and raising its outlook.
DraftKings shares are plunging 29% to trade at $16.70 after the sports betting company reported a wider-than-expected third-quarter loss of 53 cents per share on revenue of $1.33 billion, missing the $1.39 billion consensus estimate, with heavy options volume. TransMedics is surging 20.3% to $83 after adjusted earnings of 51 cents per share on revenue of $203 million exceeded expectations. Omada Health is down 19.8% at $15.20 despite earnings of 11 cents per share on revenue of $91.3 million, up 34% year over year.
The article says the stock market suffered ugly losses in the past week, with Thursday's broad sell-off dealing heavy damage to the key indexes and Friday's uneven bounce not changing the picture. It says Berkshire Hathaway is expected to report a 6% decline in operating earnings to $5.88 per B class share, with revenue up 6% to $100.96 billion. It also notes that Apple, Amazon.com and Microsoft are trading near buy points.
US employers added 165,000 jobs in October, more than double the 65,000 expected by economists, according to the Bureau of Labor Statistics, and the unemployment rate edged down to 4.1%. Markets priced in an 85% probability of a quarter point rate increase at the Fed's December 8-9 meeting, up from around 75% before the data, and traders brought forward expectations of another increase to April from June. The report reinforced signs of economic resilience as the Fed continues to battle inflation that has remained above its 2% target for more than five years.
Market watchers say the Democrats' resounding victory in the US midterms has the potential to curb interest rate hikes globally next year, though oil prices, US growth and fiscal policy will be key. The article notes the Federal Reserve, Bank of England, European Central Bank and Bank of Japan have all raised rates in recent months, partly because the US and Israel's war with Iran drove up energy prices. It says crude oil prices tumbled following the Democratic victory.
DoubleLine CEO Jeffrey Gundlach said that with energy prices up sharply, his inflation model has headline CPI starting with a 4 for the next several months, and he set a December rate hike as his base case, saying he does not understand why the Fed is so reluctant to move. He said the US Treasury yield curve steepened during the Fed press conference, which he reads as the long end voting against a slow Fed, and described a crisis of confidence in ratings on AI-related bonds, comparing the mood to subprime in 2006 and 2007, with the national debt up about a half-trillion dollars in two months.
Morgan Stanley fell 6% today, with Goldman Sachs down 6% and Citigroup off 5%, in a broad selloff with no company news behind it. Equities and fixed income trading brought in $7.8 billion of Morgan Stanley's $20.3 billion of third-quarter revenue, nearly two-fifths, compared with $10.3 billion of $50.9 billion at JPMorgan Chase, which fell a smaller 4%. Robinhood Markets fell 10%.
Shares of banks and other financial institutions fell sharply as traders braced for a popping of the AI bubble. Shares of investment firms that have extended credit to or invested in data-centre developers and software makers dropped, with Blackstone, Blue Owl, KKR and Apollo Global each falling by 3% or more. Investment bank owners such as Goldman Sachs Group and Morgan Stanley tumbled amid fears that the market selloff would slow deal activity.
Stock futures were mixed on Thursday as investors rotated away from technology and AI-related shares, with S&P 500 futures up 0.05%, Nasdaq futures down 0.90% and Dow futures up 0.65% in premarket trading. AppLovin rose 22% after its earnings, while Qualcomm fell 11% and Zillow Group fell 9%. Oil prices rebounded modestly after plunging more than 8% on Wednesday.
Jim Cramer's Charitable Trust bought 10 shares of Goldman Sachs at roughly $867, raising its holding to 160 shares and the portfolio weighting to 3.6% from 3.4%. The club said Goldman shares are down roughly 7% on concerns that pushback against data centres could mean fewer AI-related IPOs and fundraising deals, and it cited the stock's 2.3% dividend yield and quarterly share repurchase program. It added that it is also interested in adding to its Boeing position.
