U.S. stocks ended the week of November 6 sharply lower as investors reacted to the midterm elections, technology valuations and concerns about the pace of artificial intelligence infrastructure spending.
The S&P 500 closed at 7,376.86, down approximately 2.7% for the week. The Nasdaq Composite lost 3.4%, its fourth consecutive weekly decline, while the Dow Jones Industrial Average fell about 0.9% and the Russell 2000 declined 2.1%.
The S&P 500 closed Friday, November 6, at 7,376.86, a weekly decline of approximately 2.7%. The Nasdaq Composite finished at 24,579.42, down roughly 3.4% for the week and recording a fourth consecutive weekly loss.
The Dow Jones Industrial Average ended at 51,285.73, down approximately 0.9%, while the Russell 2000 index of smaller companies lost about 2.1%. Despite the weekly decline, the S&P 500 remained up approximately 7.8% for the year.
Stocks initially surged Wednesday after the midterm elections, with traders assessing the potential effect of divided government on future legislation and regulation. The Dow rose about 3% and the S&P 500 gained approximately 1.6% during that session.
Thursday brought a sharp reversal. The S&P 500 sank roughly 4.4%, its steepest one-day loss since the tariff-related turmoil of April 2025, while the technology-heavy Nasdaq fell more than 5.5%.
Technology and semiconductor stocks were at the center of the selling as investors questioned valuations and the enormous capital commitments associated with artificial intelligence infrastructure. The election also raised questions about the regulatory environment for large new data centers.
Friday brought a partial recovery. The Nasdaq increased about 1.1% and the S&P 500 0.3%, though the Dow fell another 0.5%. Semiconductor shares bounced back, including a notable rebound in Advanced Micro Devices and gains for Nvidia.
A stronger-than-expected October employment report showed approximately 165,000 jobs added and a drop in the unemployment rate. The figures suggested continuing economic resilience, but also complicated speculation about near-term Federal Reserve interest-rate reductions.
Other data indicated expanding manufacturing activity and solid third-quarter economic growth. Oil prices declined during the week, and some consumer and technology companies reported stock-specific pressure tied to earnings.
The episode illustrated the tension between strong economic data and market concerns about future earnings, higher-for-longer borrowing costs and the payback from aggressive technology investment.
Shares initially rallied after the election but suffered a major Thursday sell-off, particularly among technology and semiconductor stocks. Friday brought a partial recovery led by Advanced Micro Devices and Nvidia. A stronger-than-expected October employment report did not fully offset investor concerns about AI spending and interest rates. The S&P 500 remained positive for the year despite the pullback.