Global Economic Signals — 2026-11-06

US Stocks Plunge in Largest Selloff in 18 Months as Democrats Sweep Midterms

BLUFThursday's selloff repriced AI-infrastructure equities around political risk, and a Nasdaq recovery above 25,700 is unlikely between November 9 and November 20 given the scale of forced de-risking now spreading offshore.

On Thursday the Nasdaq Composite fell 5.52% to 24,315.00, closing in correction, while the S&P 500 dropped 4.36% and the Dow lost 1,833.06 points, or 3.44%, CNBC reported 1. Fox Business and CNN both put it as the worst day for the Nasdaq since April 2025 23. CNN reported that Nvidia fell 9.3%, a chipmaker index dropped 12.3%, and about $2.5 trillion in market value was erased 3. CNBC tied the selling to fears that a Democratic congressional sweep and gubernatorial wins could slow data center buildout, citing Sen. Bernie Sanders' call for a national moratorium 1. Blockonomi, using CoinGlass data, reported $1.03 billion in crypto liquidations over 24 hours 4.

Analysis
Thursday's rout shifts the AI infrastructure trade from momentum to political-risk pricing, with chip, neocloud and power-equipment names bearing the repricing. Spread of selling into Caterpillar and JPMorgan indicates forced de-risking by leveraged holders as well as a view on data center policy. The Nasdaq Composite is unlikely to close above 25,700 on any trading day between November 9 and November 20, 2026. Confidence is high, because three primary outlets independently report identical index levels and the recovery threshold requires reversing more than half of a one-day loss amid a volatility spike. The Kospi halt shows the selling is already moving offshore as Asian markets open Friday. The selloff may owe more to positioning unwinding after Wednesday's rally than to any policy shift, which would allow a quicker rebound. Portfolio managers can treat a Nasdaq recovery above that level as a positioning flush and restore AI infrastructure exposure. Otherwise they should keep hedges on and wait for Democratic leaders' data center policy signals before adding chip and neocloud positions.

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