Market Summary - November 6, 2026
The Nasdaq 100 (US100) has shown signs of recovery following its largest decline in 19 months. Despite this rebound, the market remains in a volatile phase, primarily driven by uncertainties surrounding AI infrastructure stocks. Investors are reassessing the pace of data-center expansion in light of recent political changes in the US, which has raised concerns about future growth in this sector.
Market Performance
On Friday, the Nasdaq 100 rose approximately 2.5%, while the S&P 500 increased by about 1.2%. The Dow Jones, however, remained slightly lower. The rebound was particularly strong in technology and semiconductor stocks, with Nvidia gaining over 5% and Lam Research surging by 12% after announcing a significant share buyback.
Recent Declines
Thursday marked a significant downturn for major US indices, with the Nasdaq dropping 5.5%, the S&P 500 falling 4.4%, and the Dow losing more than 1,800 points. This sell-off pushed the Nasdaq into correction territory, with a decline of over 10% from its recent peak. The pressure was particularly intense on companies associated with the AI boom, leading to a combined loss of around $1 trillion in market capitalization among the seven largest US tech stocks in just one session.
Labor Market Report
A robust labor-market report indicated that nonfarm payrolls increased by 165,000, and the unemployment rate fell to 4.1%. This strong data diminishes the likelihood of the Federal Reserve adopting a dovish stance, which could keep capital costs high for technology firms.
Technical Analysis
The Nasdaq 100 futures contract is currently testing the 50-period EMA, with the 27,600–27,700 range identified as a key resistance zone. The previous day's low near 27,200 points serves as the main support level. On a broader scale, the Nasdaq is trading close to lows from a prior sell-off in July and has dipped below the 200-day EMA, raising concerns about a potential medium- to long-term trend reversal.
Lam Research and Semiconductor Sector
Lam Research's stock jumped over 10% following the announcement of a $25 billion share repurchase program and a quarterly dividend of $0.33 per share. Analysts view this as a positive signal of management's confidence in the company's long-term prospects. Despite the recent downturn, firms like Needham and Morgan Stanley maintain a positive outlook on Lam Research, although they have adjusted their price targets downward.
Moderna's Quarterly Results
Moderna's shares rose nearly 4% after reporting third-quarter results that exceeded expectations. The company raised its revenue growth outlook for 2026 to between 15% and 25%, driven by strong international sales of its COVID-19 vaccine. Adjusted EPS came in at $0.38, significantly better than the anticipated loss of $1.09 per share. The company also reported a net income of $162 million, a notable improvement from a loss of $200 million the previous year.
Conclusion
Overall, while the market is experiencing a rebound, the underlying volatility and uncertainties, particularly in the tech sector, suggest that investors should remain cautious. The strong labor market data and corporate earnings reports will likely continue to influence market sentiment in the coming weeks.