investingLive Americas FX news wrap 5 Nov: Nasdaq 100 plunges 6.36% as AI selloff spreads
The main theme this morning is a sharp pullback in technology stocks, with selling spreading into other markets. The Nasdaq 100 fell six point three six percent, its worst day since 2020, and that move set the tone for gold, bitcoin and oil. Several stories today point back to this tech-led decline.
Tech shares came under heavy pressure as the United States midterms added to worries about a slowdown in artificial intelligence. The market is reacting to the possibility of tougher scrutiny of data centre construction and the AI industry after the vote. Democratic winners and progressive lawmakers are calling for limits on AI and data centres, with some urging a national data centre moratorium. Voters have also raised concerns about the water and power that data centres use.
Gold moved the other way, climbing about one percent and trading above four thousand one hundred dollars. It bounced off daily lows of four thousand and fifty seven dollars as the dollar edged lower. The metal drew support as expectations for a December rate hike faded.
Bitcoin fell six percent to a seven-week low. The drop came suddenly at the Wall Street open, as stocks sold off and erased their post-election gains. In company news, American Bitcoin reported a quarterly net profit of one hundred twenty six million dollars, largely from gains on its bitcoin holdings, even as mining costs rose and margins shrank.
The Bank of England raised its key rate to four percent, as the market had fully expected. The pound's six-session climb stopped just above one point three five zero against the dollar, a level it reached on Wednesday. Elsewhere, the Bank of Mexico unexpectedly cut rates, which it called a one-time adjustment, and the Mexican peso weakened, with the dollar trading at nineteen point seven four pesos.
Oil rebounded after a steep midweek slide, as traders reassessed whether the midterm results would quickly end the Iran war. West Texas Intermediate settled at ninety dollars and fifty two cents, up two point seven two percent, with buyers defending key support. ConocoPhillips more than doubled its third-quarter profit to four billion dollars and raised its dividend by eleven percent. Also notable, France's National Assembly unanimously rejected the government's proposed budget, and Hyperliquid Strategies filed to become a registered futures commission merchant.
How many stories mention each market, and how many read bullish or bearish.
Major tech stocks plunge as US midterms add to fears of AI slowdown. The market has been reacting to possible tougher scrutiny of data centre construction and the AI industry following the US midterms.
Figma is letting clients use more artificial intelligence features for the same price. The company would like the move to boost results in the long term.
Bitcoin saw sudden downside at the Wall Street open as stocks witnessed a snap sell-off, reversing post-election gains.
Macro & Markets: 10 selected of 35
Asia Hopes U.S. Midterm Results Will Ease Energy Crisis. Asian countries that depend on oil and gas imports for their energy security are hoping that the results of the U.S. midterms will lead to an end to the war in.
Stocks & Earnings: 10 selected of 11
Amazon plans data center campus near Glen Rose on Vistra land beside Comanche Peak. Amazon's data center project near Glen Rose highlights the growing intersection of tech and energy sectors, impacting local economies and infrastructure.
Sectors & Themes: 10 selected of 15
Asian crypto exchanges batten down the hatches as hacks surge: Asia Express. Asian crypto exchanges are scrambling to tighten security on fears of a wave of potentially AI-assisted hacks, even as regional governments embrace.
Analysts & Research: 10 selected of 30
Gold (XAU/USD) Price Forecast: Bullish Reversal Challenges Downtrend. Gold signals a potential bullish reversal after reclaiming key resistance and its 20-day moving average, but the larger declining channel continues to limit.
Compiled by the Borearis Research Team from public news and market quotes, with AI-assisted summaries. For information only, not investment advice. Trading involves risk.
