Democratic sweep slams oil and AI stocks even as 165,000 jobs revive December Fed hike bets

The S&P 500 fell 2.68% to 7,376.86 and the Nasdaq 100 lost 4.91% in their worst week since June, as a Thursday AI rout wiped out gains from the Dow's best day since April 2025 while gold rose 5.03% and WTI crude sank 12.25%.

Deepakshi Sharma

Kristal Research

6 Nov

Key takeaways — AI summary

A Democratic sweep of Congress produced a two-sided week: the Dow jumped 3.03% to 53,357 on Wednesday (its best day since April 2025) on expectations of gridlock, before the AI trade broke on Thursday, sending the Nasdaq 100 down 6.36%, the S&P 500 down 4.32% and the semiconductor index down 12.1%.
For the week the S&P 500 fell 2.68% to 7,376.86 and the Nasdaq 100 lost 4.91% — their worst week since June — with chip and neocloud names hit hardest as investors fear curbs on new data-centre construction, including from Texas's incoming governor.
WTI crude fell 12.25% to $90.34 on pledges to end the US–Iran war; gold climbed 5.03% to $4,070.31 as a haven; and the 10-year Treasury yield fell 7bps to 4.86%.
Friday's payrolls added 165,000 jobs against roughly 65,000 expected, with unemployment at 4.1% and prior months revised up 84,000, moving futures back towards about an 80% chance of a December Fed hike.
Corporate moves centred on AI financing strain: Oracle is raising $20 billion and cancelled a $7 billion Tencent chip-leasing deal, Meta's $15 billion bond sale drew up to $58 billion of demand, and CoreWeave's debt-insurance cost climbed to about 1,140 basis points.

Generated by Kristal AI · reviewed by the research desk

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