Before the stock market opened, we knew technology would face pressure after Qualcomm’s (QCOM) outlook missed, but there was no panic. But we have been sitting on a powder keg for weeks.

Selling begets selling, and each day built a worst-case scenario in the AI trade ahead of the midterms.

Now a dark cloud of doubt won’t be lifted until January of next year, but investors aren’t waiting.

The market will likely be oversold when actual data center policies are announced, but that seems like a million years from now.

So, uncertainty rules.

The dilemma for anyone holding these names at higher prices is whether to take a hit or wait it out, knowing the pain won’t go away overnight.

These are the times when big money is made because big money is lost.

Technically, key indices have broken their 200-day moving average, so there are no potential technical support points.

Semiconductors

Chip stocks are leading the decline, with the Philadelphia Semiconductor Index (SOX) down more than 10%.

NASDAQ

Note: buyers emerged at 24,262, which now becomes a must-hold point for the remainder of the session.

Today also illustrates that there are few places to hide because panic will move beyond tech at some point. The S&P 500 dropped swiftly, losing $1.5 trillion in value in 20 minutes.

By 10:00, the only factor higher was low vol.

This brings up a very critical point about the war on data centers shifting from rhetoric to reality – there will be huge negative consequences beyond hurting the net worth of a few tech titans.

And the damage won’t be relegated only to the stock market.

But it could morph into a recession, just as all the pieces are in place for a productivity boom.

AI investment has powered GDP growth, resulting in a ten-month manufacturing boom.

This morning we learned third-quarter productivity was 3.6%; the Street was looking for 2.9%.

An AI-driven productivity boom would be great.

By the way – odds of a rate hike next month have declined from 82.7% to 69.1%.

These are the trying times of investing, compounded by political intrigue. We try not to panic, and then we take advantage.

Comments

Did someone say clearance sale? Todd on 11/5/2026 1:12:16 PM

I cant wait till hedge funds big and small start failing Then it will be safe to buy There's not enough blood in the streets right now marc on 11/5/2026 1:53:13 PM

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