Stock market today: Nasdaq and S&P 500 rebound, Dow slips to cap bruising week for AI stocks
Chip stocks rebounded Friday after Thursday's sell-off, which was driven by concerns about Democrats winning Congress and a possible slowdown in data center construction and AI spending, and which erased $3 trillion in market value. The S&P 500 was still headed for its worst week since June, and Technology (XLK) and Energy (XLE) fell 7% and 11% on the week. The October jobs report showed the U.S. added 165,000 jobs, above the 65,000 economists expected. Yahoo Finance
Strong October jobs report sends yields higher
Nonfarm payrolls jumped by 165,000 in October against the 65,000 economists polled by Reuters had forecast, and the unemployment rate fell to 4.1% from 4.2%. September was revised up to a 60,000 gain from 29,000, with August and September revised up by a combined 84,000. Bets on a Federal Reserve rate hike next month rose to 78% from 70% before the data. Reuters
Oil prices tumble for the week as investors weigh Iran conflict risk after midterm elections
Brent crude futures added 3 cents to close at $98.32 a barrel and U.S. West Texas Intermediate gained 31 cents to settle at $90.83, as investors weighed the risk of renewed military escalation between the U.S. and Iran following the midterm elections. Iran reportedly sent a nuclear proposal to Washington through Qatar, while Iran reported three more attacks on oil tankers in the Strait of Hormuz. CNBC
| Asset | Close | Chg | % |
|---|---|---|---|
| S&P 500^GSPC | 7,376.86 | +23.13 | +0.31% |
| Nasdaq Composite^IXIC | 24,579.42 | +264.42 | +1.09% |
| Dow Jones^DJI | 51,285.73 | -237.33 | -0.46% |
| CBOE Volatility Index^VIX | 25.64 | -2.54 | -9.01% |
| U.S. Dollar IndexDXY · 4:00 PM ET | 102.28 | +0.69 | +0.68% |
| Brent CrudeICE Jan '27 · 2:30 PM ET settle | $98.32 | +$0.03 | +0.03% |
| WTI CrudeNYMEX Dec '26 · 2:30 PM ET settle | $90.83 | +$0.31 | +0.34% |
| GoldCOMEX Dec '26 · 1:30 PM ET | $4,075.80 | -$37.20 | -0.90% |
| Tenor | Close | Chg | % |
|---|---|---|---|
| 1-MonthT-bill | 4.02% | -1bp | -0.25% |
| 3-MonthT-bill | 4.19% | +2bp | +0.48% |
| 6-MonthT-bill | 4.23% | +4bp | +0.95% |
| 1-YearT-note | 4.33% | +5bp | +1.17% |
| 2-YearT-note | 4.51% | +5bp | +1.12% |
| 5-YearT-note | 4.64% | +5bp | +1.09% |
| 10-YearT-note | 4.86% | +2bp | +0.41% |
| 30-YearT-bond | 5.26% | +1bp | +0.19% |
Equities recovered part of Thursday's AI-led liquidation, with the rebound concentrated in semiconductors and large-cap technology: the S&P 500 rose 23.13 points, or 0.31%, to 7,376.86 and the Nasdaq Composite 264.42 points, or 1.09%, to 24,579.42, while the Dow slipped 237.33 points, or 0.46%, to 51,285.73. The VIX eased 2.54 to 25.64, a 9.01% decline, but remains well above Wednesday's 16.61 close. Breadth was narrow: only three sectors advanced, led by Technology (+1.45%), Communication Services (+0.43%) and Industrials (+0.12%), while Consumer Staples (-1.28%), Materials (-0.73%) and Real Estate (-0.68%) lagged. Coherent (+13.58%) led S&P 500 gainers, followed by Airbnb (+11.69%), Advanced Micro Devices (+11.04%), which recovered part of Thursday's 17.26% decline, Vistra (+10.52%) and AppLovin (+9.87%). Axon Enterprise (-18.24%) was the largest decliner, ahead of Microchip Technology (-10.04%), Charter Communications (-6.22%), Insulet (-6.13%) and Centene (-6.03%).
The October payrolls beat reversed part of Thursday's front-end rally and flattened the curve: the 1-year rose 5bp to 4.33%, the 2-year 5bp to 4.51% and the 5-year 5bp to 4.64%, while the 10-year added 2bp to 4.86% and the 30-year 1bp to 5.26%, narrowing 2s10s to 35bp from 38bp. Reuters reported that bets on a December rate hike rose to 78% from 70% before the release. The dollar strengthened, with DXY up 0.69 to 102.28 (+0.68%), and gold fell 0.90% to $4,075.80 (1:30 PM ET print). Crude was little changed on the session: January Brent settled 3 cents higher at $98.32 and December WTI 31 cents higher at $90.83, narrowing the Brent-WTI spread to $7.49 from $7.77. On the week, January Brent fell 13.32% from its $113.43 settle on Oct 30 and December WTI 12.76% from $104.12.
Next week opens with Vice Chair for Supervision Bowman on community banking Monday at 8:40 AM, September wholesale trade at 10:00 AM and $58bn of 3-year notes at 1:00 PM. Tuesday carries Governor Waller on the economic outlook at 4:00 AM in London, October CPI and real earnings at 8:30 AM, $42bn of 10-year notes at 1:00 PM and two Bowman appearances on the outlook. Wednesday is the Veterans Day holiday, with the Fed's weekly releases moved to Thursday, Nov 12, which also brings initial jobless claims at 8:30 AM, Governor Barr on artificial intelligence and inequality and October business formation statistics at 10:00 AM, and the $25bn 30-year bond auction at 1:00 PM. October PPI follows Friday, Nov 13. With a stronger labor print now feeding hike expectations, CPI is the input most likely to decide whether the front end extends today's move, and the three coupon auctions will test demand for duration at higher yields.