The midterms’ blue wave crashed into the AI trade. Markets cheered the results on Wednesday, then made a sharp U-turn on Thursday. AI stocks fell the most and defensive stocks the least, but there were few places to make money. The move away from the biggest stocks has been building since October. Are tech stocks cheap now? It’s hard to see who is paying the bill for AI. More weird markets. A bad day for Binance.
1. The semiconductor and Nasdaq 100 ETFs had their worst day since March 2020:
Source: Koyfin via the Daily Chartbook on 11/5/2026
2. The market’s recent winners were hit hard:
Source: @cfromhertz
3. Thursday accelerated a move that was already underway:
Source: John Authers, Points of Return on 11/2/2026
4. Texas has, by far, the largest data center pipeline:
Source: Frank Flight, Citadel Securities
5. It also swung further toward Democrats than any other state:
Source: Frank Flight, Citadel Securities
6. From the market’s perspective, data centers were on the ballot:
Source: John Authers, Points of Return on 11/5/2026
7. Parts of the AI trade are already in a bear market:
Source: Ben Emons, Highline Asset Management via Bloomberg Odd Lots
8. I believe tech earnings are temporarily inflated, but there’s still a price where the stocks are cheap:
Source: Bloomberg, S&P Global, as compiled by Citadel Securities, Global Market Intelligence, as of November 3, 2026.
9. Today’s retail investors almost always want to buy the dip. Professionals are a bit more selective:
Source: State Street Investment Management Chart Pack, November 2026 edition
10. We’re spending more on tech, as a share of GDP, than at the peak of the dot-com boom:
Source: Chartbook a newsletter from Adam Tooze on 11/3/2026
11. Balance sheets don’t show the full extent of AI companies’ financial commitments, but markets are clearly aware:
Source: Michael Cembalest, JPMorgan via the Daily Chartbook on 11/5/2026
12. This year’s two best sectors are negatively correlated, a first going back to 1973:
Source: NDR via Charles Schwab and the Daily Chartbook on 11/4/2026
13. A fake job interview and one engineer’s laptop opened the door to a $6.3 billion heist, per Bloomberg reporting:
Source: John Authers, Points of Return on 11/3/2026
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