Nasdaq sinks 5.5% on AI-regulation fears; Asia routs, Treasury yields drop
Friday, November 6, 2026 · as of Nov 6, 6:26 AM ET · covers the prior trading session
US stocks had their worst day since April 2025 as fears of tighter AI regulation after the Democrats' congressional sweep crushed chipmakers; the Nasdaq fell 5.52% and entered correction. The selloff spread to Asia, where the Nikkei and KOSPI each fell about 6%, while the 2-year Treasury yield dropped 12 bp. US futures were modestly higher ahead of today's October jobs report.
Key numbers
What mattered yesterday
- Worst US session since April 2025: Nasdaq −5.52%, S&P 500 −4.36%, Dow −3.44%, Russell 2000 −4.45%; the Nasdaq entered correction. Tapeboard; Trading Economics
- Fear of tighter AI and data-center regulation after Democrats won both chambers of Congress hit chips: the Philadelphia Semiconductor Index fell 12.2%, Nvidia −9.3%, Broadcom −10.4%. Trading Economics
- Treasuries rallied hard: the 2-year yield fell 12 bp to 4.46% and the 10-year fell 6 bp to 4.84%. U.S. Treasury
- Data were firm: Q3 productivity +3.6% (consensus 2.8%), unit labor costs −0.7% (consensus +0.6%), initial jobless claims 189K (consensus 196K). Trading Economics calendar
- The rout spread to Asia overnight: the Nikkei fell 5.96% and the KOSPI 6.02%, with a 20-minute KOSPI circuit-breaker halt after the open. Trading Economics
Market snapshot
Why it mattered
Reported: The selloff centered on AI-infrastructure names after the midterm result, while bonds and the dollar drew haven demand; S&P and Nasdaq 100 futures were higher, Dow futures slightly lower, before the jobs report (Trading Economics).
Our read (commentary, not investment advice): This looks like a policy-risk repricing of AI, not a growth scare; Thursday's labor data were solid. The 12 bp drop in the 2-year signals markets leaning harder toward Fed cuts. A weak payrolls print today could turn that relief into growth worry.
Today's calendar
- 8:30am ET: October jobs report (payrolls consensus 65K, prior 29K; unemployment consensus 4.2%)
- 9:10am ET: Fed's Musalem speaks; 12:15pm ET: Fed's Bowman speaks
- 10:00am ET: Michigan consumer sentiment, preliminary November (consensus 48)
- 3:00pm ET: September consumer credit
- Earnings before the open: Moderna, Humana, Vistra, Charter
- Next week: CPI Tue Nov 10, 8:30am ET; PPI Fri Nov 13, 8:30am ET
Business lens
- Dairy: USDA weekly prices for the week ending Oct 31 (released Nov 4): 40-lb cheddar blocks $1.5279/lb (+11.0¢ w/w), butter $1.3703/lb (+0.8¢), nonfat dry milk $2.1203/lb (+6.7¢), dry whey $0.7325/lb (−0.5¢); barrels unavailable. October FMMO all-market average: Class III $15.16/cwt (Sep $16.04), Class IV $20.54/cwt (Sep $18.94). Class III milk was $17.68/cwt on Nov 5 (−0.95%, Trading Economics). CME spot dairy for Nov 5: unavailable. Week: cheese up, butter flat-to-up.
- Feed: Corn held below $4.40/bu and soybeans around $11.8/bu, both near three-month lows; wheat was about $6/bu (Trading Economics, Nov 6 morning). Soymeal unavailable.
- Fuel: U.S. retail diesel $6.292/gal for the week of Nov 2, down 6.0¢ vs prior week (EIA).
- Freight: Latest weekly spot truckload rates unavailable.
- Rates: SOFR 3.94%, EFFR 3.88%.
Our read (commentary): Butter below $1.40 holds down Class IV's butterfat value, but strong NDM prices are carrying Class IV well above Class III. Firmer block cheese prices and three-month lows in corn and soy point to better milk-over-feed margins into November. Diesel above $6 still weighs on delivery routes.