The S&P 500 and Nasdaq had their worst week since June. The S&P 500 fell 2.7% to 7,376.86 and the Nasdaq 3.4% to 24,579.42, after a Thursday in which the S&P 500 fell about 4.4%, its worst day since April 2025, and the Nasdaq fell about 5.5% into correction territory. The Dow lost 0.9% to 51,285.73. The Russell 2000 fell 2.1% to 2,754.11, about 10.2% below its August record and back in the correction territory it left two weeks ago. Press reports tied Thursday's drop to concern that the new Congress could tighten rules on data center construction and slow spending on artificial intelligence; Democrats won control of both chambers in Tuesday's midterm elections, according to AP projections. Oil fell about 13% for the week on reports that the U.S. and Iran were moving closer to a breakthrough: January Brent settled at $98.32 and December WTI at $90.83. Gold rose more than 4% to about $4,080. Employers added 165,000 jobs in October against forecasts near 60,000 to 70,000, unemployment fell to 4.1%, and the ten-year yield eased to 4.86% for the week, though yields rose on Friday after the jobs report. Futures put the odds of a December rate hike at about three in four. October consumer prices are due Tuesday.
Small caps gave back most of their two weeks of gains and slipped back into correction. The Russell 2000 fell 2.1% to 2,754.11, about 10.2% below the 3,068.42 record from #031, after climbing out of correction territory in #041 and rising again in #042. #042 said a second week of strength was still not a trend, and this week showed why. The damage was narrower than the index moves suggest. The equal-weight S&P 500 fell about 1.0% while the cap-weighted index fell 2.7%, and five of eleven sector funds rose: communication services gained 4.9%, real estate 1.9% and consumer discretionary 1.9%. Energy fell 12.0% with oil, and technology 8.2%. Rates fell modestly. The ten-year yield eased to 4.86% from 4.94% and the two-year to 4.51% from 4.56%, which did not stop small caps from falling.
Thursday was the week. The S&P 500 fell about 4.4%, its worst day since April 2025, the Nasdaq fell about 5.5% into correction territory, and the semiconductor index fell more than 12%. The Dow lost 1,833 points a day after rising 1,569. Press reports tied the selloff to concern that tighter rules on data center construction could slow spending on artificial intelligence, a reported investor worry rather than any change in law. Memory and storage makers took the worst of it, with Micron down about 22% for the week and Western Digital and Seagate each down about 28%. Palantir fell 12.9% after its results, and AMD fell 11.1% for the week despite raising its outlook. Results still mattered at the edges: AppLovin rose 71% after a third-quarter beat and a raised outlook. Amazon rose 7.9% for the week. The Nasdaq recovered 1.1% on Friday. #042 described the largest companies being judged on cash; this week the question was policy.
The jobs report beat expectations by a wide margin. Employers added 165,000 jobs in October against forecasts near 60,000 to 70,000, August and September were revised up by a combined 84,000, and unemployment fell to 4.1% from 4.2%. Average hourly earnings rose 0.4% in the month and 3.1% from a year earlier. The ISM manufacturing index rose 1.0 point to 55.5, with production at 59.0 and prices at 75.2, and the services index was 54.5 against a 54.8 forecast, with prices paid at 73.0. Futures put the odds of a quarter-point hike at the December meeting at about three in four. Oil fell sharply. January Brent settled at $98.32 on Friday, about 13% below its $113.43 settle a week earlier on the desk's arithmetic, and December WTI at $90.83, about 13% below its $104.12 settle. Traders cited reports that the U.S. and Iran were moving closer to a breakthrough, recovering Gulf exports, and expectations after the midterm results. Gold rose more than 4% to about $4,080. October consumer prices are due Tuesday.
Coverage ledger: the desk adds seven dossiers to the research library this week, each built from results reported in the past two weeks. GAU, Galiano Gold, owns 90% of the Asanko mine in Ghana, which produced 40,922 ounces in the third quarter, up 19% from the second. GROY, Gold Royalty Corp., reported revenue up 147% to $10.2M. GSM, Ferroglobe, a producer of silicon metal and silicon- and manganese-based alloys, reported sales up 18.6% to $369.8M. REPX, Riley Exploration Permian, reported oil output up 38% to 25,435 barrels a day. PDLB, Ponce Financial Group, the Bronx holding company for Ponce Bank, reported a 3.86% net interest margin. ALLO, Allogene Therapeutics, is a clinical-stage developer of donor-derived CAR T cells. NAGE, Niagen Bioscience, reported net sales down 20% to $27.2M. The week's commodity moves reach three of them: gold's rise lifts the price GAU and GROY sell into, and Galiano's last hedged ounces are expected to settle this quarter, while oil's drop lowers the price REPX sells into on its unhedged barrels; swaps and collars struck below $70 cover 1.37 million barrels, more than half of guided fourth-quarter oil. Among existing coverage, CXDO reported third-quarter revenue up 44% to $25.2M and net income of $1.1M against $1.5M, and KRT reported net sales up 8.2% to $134.7M, net income of $4.7M against $7.6M, and a $0.47 quarterly dividend. LWAY reports November 12. Full dossiers in the research library.
| Ticker | Company | Move | Why it moved |
|---|---|---|---|
| COMP | Nasdaq Composite | -3.4% | Closed at 24,579.42, its worst week since June, after a Thursday drop of about 5.5% that put it in correction territory; press reports tied the selloff to concern over tighter rules on data center construction |
| RUT | Russell 2000 | -2.1% | Closed at 2,754.11, about 10.2% below its August record and back in correction territory; the equal-weight S&P 500 fell about 1.0% while the cap-weighted S&P 500 fell 2.7% |
| BRENT | Brent Crude | $98.32 | January Brent settled about 13% below its settle a week earlier and December WTI at $90.83, also about 13% lower, on reports of progress in U.S. and Iran talks and recovering Gulf exports |
| GOLD | Gold | $4,080 | Rose more than 4% for the week to about $4,080 an ounce in December futures, after falling 3.1% the week before |
| 10Y | Ten-Year Treasury | 4.86% | Eased from 4.94% and the two-year to 4.51%, even as October payrolls rose 165,000 against forecasts near 60,000 to 70,000 and unemployment fell to 4.1%; futures put a December hike at about three in four |