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S&P 500 Sinks 4.4% on AI Selloff Before Jobs Report
Why did the S&P 500 fall 4.4%?
The S&P 500 (SPX) fell 4.4%, or 334.89 points, on Thursday after an AI-stock selloff, as investors feared Democratic midterm wins could slow data center building.
Key numbers
| October jobs expected | 65,000vs 29,000 in September |
|---|---|
| Unemployment rate expected | 4.2%unchanged from September |
| S&P 500, Thursday | -4.4%worst day since April 2025 |
| Nasdaq Composite, Thursday | -5.5%enters correction |
| December Fed hike odds | 66%before the report (per [3]) |
What happened
The S&P 500 (SPX) fell 4.4%, or 334.89 points, on Thursday after an AI-stock selloff, as investors feared Democratic midterm wins could slow data center building. The Nasdaq dropped 5.5% and Nvidia lost about 9%. At 8:30 am ET today, the government reports how many jobs were added in October. Economists surveyed by Bloomberg expect about 65,000 new jobs, up from 29,000 in September, with unemployment holding at 4.2%. A Dow Jones survey expects 59,000 jobs.
Why it matters
The S&P 500 (SPX), the main gauge of large US companies, had its worst day since April 2025, so a 4.4% drop reaches many retirement and savings accounts. Today's jobs report is the first big economic reading since that fall. A strong number could raise the odds that the Federal Reserve lifts interest rates in December, now about 66% by one estimate, which can weigh on stocks. A weak number would raise worries about the economy.
Who this affects
- MarketmixedHigh impact
- Stock traders face big swings after the worst day since April 2025.
- CompanybearishHigh impact
- Chip makers like Nvidia, AMD and Micron lost 9% to 17%.
- CompetitorsbearishMedium impact
- Japan and South Korea stocks fell about 6% on Friday.
- IndustrybearishHigh impact
- AI data center builders face political and borrowing-cost worries.
S&P 500 vs Nasdaq Composite, Dow Jones, Nikkei 225
| S&P 500SPX | -4.4% | 2026-11-05 |
|---|---|---|
| Nasdaq CompositeIXIC | -5.5% | 2026-11-05 |
| Dow Jones Industrial AverageDJI | -3.4% | 2026-11-05 |
| Nikkei 225N225 | -6.1% | 2026-11-06 |
As of 2026-11-06
How we got here
S&P 500 falls 4.4% and Nasdaq 5.5% as chip and AI shares slide.
Magnificent Seven tech giants lose over $1 trillion; Nvidia's 2026 gain is erased.
Japan's Nikkei 225 falls 6.1% and South Korea's Kospi 6.3%.
US government releases the October jobs report.
What to watch
- Jobs added versus the 65,000 forecast, and whether unemployment holds at 4.2%.2026-11-06
- Whether chip and AI stocks keep falling after the Nasdaq's slide into correction territory.2026-11-06
- Whether December Fed rate-hike odds, near 66% before the report, rise or fall (per).December 2026
Educational content only. Not investment advice.
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