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Wall Street closed sharply lower on Thursday, pulled down by a broad-based stock slump. Investor sentiment turned bearish as concerns over potentially tighter AI infrastructure regulations following Democratic election victories triggered profit-taking and weighed on technology stocks. All three benchmark indexes ended firmly in the red.
How Did the Benchmarks Perform?
The Dow Jones Industrial Average (DJI) fell 1833.06 points, or 3.4%, to close at 51,523.06. All components of the 30-stock index ended in negative territory.
The tech-heavy Nasdaq Composite plunged 1421.52 points, or 5.5%, to close at 24,315.00.
The S&P 500 slumped 334.89 points, or 4.4%, to close at 7,353.73. All of the benchmark index's 11 broad sectors closed in the red. The Technology Select Sector SPDR (XLK), the Industrials Select Sector SPDR (XLI), the Consumer Discretionary Select Sector SPDR (XLY) and the Energy Select Sector SPDR (XLE) declined 7.3%, 4.1%, 3.7% and 2.7%, respectively.
The fear gauge CBOE Volatility Index (VIX) increased 69.7% to 28.18. A total of 26.9 billion shares were traded on Thursday, higher than the last 20-session average of 17.7 billion. Decliners outnumbered advancers by a 6.1-to-1 ratio on the S&P 500.
AI Regulation Fears Trigger Massive Wall Street Selloff
Wall Street suffered a sharp selloff on Thursday as concerns over tighter regulation of artificial intelligence (AI) infrastructure following Democratic election victories rattled investor confidence. Democratic wins in states where opposition to new data centers has gained momentum raised fears that policy changes could slow the massive AI infrastructure buildout that has fueled this year's stock market rally.
The Philadelphia SE Semiconductor Index plunged more than 12%, reflecting intense selling pressure across the chip sector. AI-related stocks and data center companies bore the brunt of the downturn as investors reassessed growth prospects amid potential regulatory headwinds. The selloff wiped out approximately $3 trillion in market value from S&P 500 companies.
The Nasdaq Composite recorded its steepest single-day decline in 19 months. The index also entered a technical correction, falling more than 10% from its Oct. 6 record closing high. The sharp retreat highlighted growing investor concerns over stretched AI valuations, heavy infrastructure spending and the possibility that regulatory uncertainty could undermine the sector's growth outlook.
Oil Prices Rebound as Tanker Attacks Revive Supply Concerns
Oil prices rebounded sharply on Thursday, with Brent crude futures rising more than $3 per barrel as fresh attacks on tankers in the Gulf heightened concerns over global supplies. Investors also reassessed the outlook on the conflict with Iran, adding to uncertainty in energy markets.
Brent crude settled at $98.29 per barrel, up $3.67, or 3.88%, while WTI crude gained $2.40, or 2.72%, to close at $90.52. The recovery followed Wednesday's steep decline of more than 8% in both benchmarks. At least five vessels have reported incidents since Sunday, keeping tanker attacks near record levels and reinforcing fears of prolonged supply disruptions.
Economic Data
For week ending Oct. 31, initial jobless claims came in at 189,000, a decrease of 6,000 from the previous week's revised level. The prior week's level was revised up by 1,000 from 194,000 to 195,000. The four-week moving average was 194,750, a decrease of 2,250 from the previous week's revised average. The prior week's average was revised up by 250 from 196,750 to 197,000.
Continuing claims for the week ending Oct. 24 were 1,718,000, an increase of 23,000 from the previous week's revised level. The prior week's level was revised down by 6,000 from 1,701,000 to 1,695,000. The four-week moving average was 1,709,500, an increase of 1,000 from the previous week's revised average. The previous week's average was revised down by 1,500 from 1,710,000 to 1,708,500.
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Stock Market News for Nov 6, 2026
Wall Street closed sharply lower on Thursday, pulled down by a broad-based stock slump. Investor sentiment turned bearish as concerns over potentially tighter AI infrastructure regulations following Democratic election victories triggered profit-taking and weighed on technology stocks. All three benchmark indexes ended firmly in the red.
How Did the Benchmarks Perform?
The Dow Jones Industrial Average (DJI) fell 1833.06 points, or 3.4%, to close at 51,523.06. All components of the 30-stock index ended in negative territory.
The tech-heavy Nasdaq Composite plunged 1421.52 points, or 5.5%, to close at 24,315.00.
The S&P 500 slumped 334.89 points, or 4.4%, to close at 7,353.73. All of the benchmark index's 11 broad sectors closed in the red. The Technology Select Sector SPDR (XLK), the Industrials Select Sector SPDR (XLI), the Consumer Discretionary Select Sector SPDR (XLY) and the Energy Select Sector SPDR (XLE) declined 7.3%, 4.1%, 3.7% and 2.7%, respectively.
The fear gauge CBOE Volatility Index (VIX) increased 69.7% to 28.18. A total of 26.9 billion shares were traded on Thursday, higher than the last 20-session average of 17.7 billion. Decliners outnumbered advancers by a 6.1-to-1 ratio on the S&P 500.
AI Regulation Fears Trigger Massive Wall Street Selloff
Wall Street suffered a sharp selloff on Thursday as concerns over tighter regulation of artificial intelligence (AI) infrastructure following Democratic election victories rattled investor confidence. Democratic wins in states where opposition to new data centers has gained momentum raised fears that policy changes could slow the massive AI infrastructure buildout that has fueled this year's stock market rally.
The Philadelphia SE Semiconductor Index plunged more than 12%, reflecting intense selling pressure across the chip sector. AI-related stocks and data center companies bore the brunt of the downturn as investors reassessed growth prospects amid potential regulatory headwinds. The selloff wiped out approximately $3 trillion in market value from S&P 500 companies.
The Nasdaq Composite recorded its steepest single-day decline in 19 months. The index also entered a technical correction, falling more than 10% from its Oct. 6 record closing high. The sharp retreat highlighted growing investor concerns over stretched AI valuations, heavy infrastructure spending and the possibility that regulatory uncertainty could undermine the sector's growth outlook.
Consequently, NVIDIA Corporation (NVDA - Free Report) and GE Vernova Inc. (GEV - Free Report) plunged 9.3% and 7.5%, respectively. Both currently carry a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Oil Prices Rebound as Tanker Attacks Revive Supply Concerns
Oil prices rebounded sharply on Thursday, with Brent crude futures rising more than $3 per barrel as fresh attacks on tankers in the Gulf heightened concerns over global supplies. Investors also reassessed the outlook on the conflict with Iran, adding to uncertainty in energy markets.
Brent crude settled at $98.29 per barrel, up $3.67, or 3.88%, while WTI crude gained $2.40, or 2.72%, to close at $90.52. The recovery followed Wednesday's steep decline of more than 8% in both benchmarks. At least five vessels have reported incidents since Sunday, keeping tanker attacks near record levels and reinforcing fears of prolonged supply disruptions.
Economic Data
For week ending Oct. 31, initial jobless claims came in at 189,000, a decrease of 6,000 from the previous week's revised level. The prior week's level was revised up by 1,000 from 194,000 to 195,000. The four-week moving average was 194,750, a decrease of 2,250 from the previous week's revised average. The prior week's average was revised up by 250 from 196,750 to 197,000.
Continuing claims for the week ending Oct. 24 were 1,718,000, an increase of 23,000 from the previous week's revised level. The prior week's level was revised down by 6,000 from 1,701,000 to 1,695,000. The four-week moving average was 1,709,500, an increase of 1,000 from the previous week's revised average. The previous week's average was revised down by 1,500 from 1,710,000 to 1,708,500.