U.S. Stock Market Trends (Nov. 6): Nasdaq Falls 5.52% Into Correction, Magnificent Seven Lose More Than $1 Trillion

By: Tide Direction Research

The Nasdaq plunged 5.52%, entering a technical correction; the S&P 500 and Dow fell 4.36% and 3.44%, respectively, erasing all post-election gains from Wednesday.

The Magnificent Seven lost more than $1 trillion in combined market cap, led by Nvidia; the Philadelphia Semiconductor Index fell about 12%.

After hours, Airbnb and Cloudflare surged on guidance that beat expectations, while DraftKings and Atlassian tumbled.

Nasdaq Enters Correction; Three Major Indexes Post Biggest Single-Day Drop in 19 Months

On Thursday, the Nasdaq fell 5.52% to close at 24,315.00 points, entering a technical correction with a pullback of more than 10% from its recent high.

The S&P 500 fell 4.36% to close at 7,353.73 points; the Dow dropped 1,833.06 points, or 3.44%, to close at 51,523.06 points. The Nasdaq 100 fell 6.36% to 26,629.81 points, and the Russell 2000 fell 4.45% to 2,729.89 points.

All three major indexes posted their biggest single-day drops since the tariff shock on Apr. 4, 2025. The VIX rose 11.57 points to 28.18, its highest since Mar. 31 and its biggest single-day gain since Apr. 4, 2025.

All 11 S&P 500 sectors closed lower, with Information Technology down 7.30%, its worst since Mar. 16, 2020; the Technology sector ETF (XLK) fell 8.04%. Decliners outnumbered advancers on the NYSE by nearly 6 to 1.

AI Infrastructure Stocks Lead Declines; Magnificent Seven Lose More Than $1 Trillion

The market continued to digest data center regulatory risks after Democrats swept Congress, weighing on AI-related stocks.

The Magnificent Seven lost more than $1 trillion in combined market cap. Nvidia fell more than 9%, wiping out more than $440 billion in market value and expanding its year-to-date decline to about 2.6%, turning negative; AMD and Micron each fell about 17%; CoreWeave fell about 10%; GE Vernova fell 7.5%.

The Philadelphia Semiconductor Index fell about 12%, its second-largest single-day drop on record. SanDisk fell about 22% intraday.

Apple and Microsoft, which hit record highs on Wednesday, also pulled back with the broader market. Trades betting that a divided government would benefit equities after the election were overshadowed within a day by AI regulatory concerns.

Airbnb and Cloudflare Soar After Hours; DraftKings Falls More Than 20%

Airbnb reported Q3 revenue of $4.87 billion, up about 19% year over year and above the $4.75 billion expected; earnings per share were $3.16, above the $2.85 expected.

The company raised its full-year revenue growth outlook to high double digits and added a $12 billion share repurchase authorization. The stock rose about 11% after hours to $188.89.

Cloudflare reported Q3 revenue of $782.5 million, above expectations; Q4 revenue guidance of $845 million to $846 million beat the roughly $798 million expected, and the stock rose about 14% after hours to $279.

JFrog raised its full-year guidance and rose about 25% after hours.

DraftKings reported a Q3 loss per share of $0.94 and revenue of $1.33 billion, both missing expectations, and fell about 22% after hours. Atlassian fell more than 15% after hours on a lower data center revenue growth outlook. Affirm's next-quarter guidance only slightly beat expectations, and it fell about 11% after hours; Axon missed expectations and fell about 13% after hours.

Initial Jobless Claims Fall to 189,000; Oil Prices Rebound

Initial jobless claims for the week were 189,000, below the 197,000 expected, down 6,000 week over week.

U.S. Treasury yields declined. The 10-year yield fell more than 5 basis points to 4.839%, and the 2-year yield fell more than 11 basis points to 4.466%.

WTI crude rose 2.7% to settle at $90.52 a barrel; Brent crude rose 3.8% to settle at $98.29 a barrel. Tanker attacks renewed supply concerns, after both fell more than 8% on Wednesday.

Bitcoin fell about 6%, retreating to around $75,000.

Today's Watch

All times below are Beijing time.

21:30: U.S. October nonfarm payrolls report.Dow Jones survey expects 59,000 new jobs, with the unemployment rate unchanged at 4.2%. September added only 29,000 jobs.

The Fed:CME FedWatch shows markets are pricing in about a 70% chance of a 25 basis point rate hike on December 9. After Thursday's stock market selloff, some rate traders pushed back expectations for the next hike to March of next year.

Source: 深潮 TechFlow