Stocks are trying to bounce after a brutal selloff on Thursday. Bonds are lower along with gold and silver, while the dollar is popping. Crude oil is up a bit.
In a historic rout, almost any stock AI- or tech-related got hammered yesterday. The Nasdaq 100 lost 6.4%, its worst one-day loss since Liberation Day in early 2025. The iShares Semiconductor ETF (SOXX) plunged more than 12%, its worst day since the Covid pandemic in March 2020. The VanEck Data Center Supply Chain ETF (RACK) slumped 9.8%, while the Roundhill Neocloud ETF (NCLD) sank 12.3%.
QQQ (Red), SOXX (Black), RACK (Blue), NCLD (Orange) - 1-Day % Change
Source: TradingView
The move comes after Election Day resulted in the Democrats taking control of the Senate and the House. Many investors and industry representatives believe that will result in a less AI-friendly regulatory environment. Bipartisan opposition has also been building on the data center front. Several localized measures that would halt or delay data center approval and construction passed this week.
For now, we’ll have to see if a modest Friday bounceback turns into something more. To get the bull case on the AI boom, check out this recent MoneyShow MoneyMasters Podcast featuring Sydney Armani, Michael Lee, and Louis Navellier. To get a more bearish take, check out this one featuring Larry McDonald.
Meanwhile, we just learned the US economy created 165,000 jobs in October. The unemployment rate dipped to 4.1%, while average hourly earnings grew 0.4%. Those readings beat expectations across the board.
The Federal Reserve has one more policy meeting left in 2026. It concludes on Dec. 9. Rate futures markets were recently pricing in a 75% chance of a 25-basis point hike at the gathering, according to CME FedWatch. This data reinforces the case for a move.
Finally, could the Cybertruck be headed to the dustbin of automotive history? Tesla Inc. (TSLA) said it would cease production of the vehicle at its Texas plant starting in the middle of 2027. CEO Elon Musk said the move would free up space to churn out more Cybercabs. It’s unclear if production will be shifted elsewhere, or if the polarizing model will be phased out.
