U.S. stocks suffered a sweeping selloff Thursday, November 5, 2026, as concerns about artificial intelligence infrastructure spending, semiconductor valuations and the political outlook overwhelmed the previous session’s post-election optimism. The Nasdaq Composite dropped 5.52%, the S&P 500 fell 4.36%, and the Dow Jones Industrial Average lost 1,833.06 points. The session’s defining theme was repricing. Many reassessed how quickly AI projects can secure permits, obtain electricity and generate returns, while a sharp rise in volatility signaled growing demand for downside protection. Meanwhile, low unemployment claims offered evidence that the equity selloff was not accompanied by a sudden surge in layoffs.

Closing Market Performance: Dow, S&P 500, Nasdaq and Russell 2000

The Nasdaq’s larger decline reflected the pressure on technology and AI-related shares. However, the Russell 2000’s 4.26% retreat showed that selling extended well beyond the largest growth companies. Thursday was not simply a rotation from technology into smaller domestic businesses.

Why Stocks Fell: AI Infrastructure Faces a New Political Test

The post-election market narrative changed quickly. Following Democratic victories in Congress and key gubernatorial races, attention shifted toward the possibility of tougher scrutiny of data-center development, including permitting restrictions, electricity costs and community opposition. Those concerns weighed on businesses whose growth expectations depend on continued rapid construction of AI infrastructure. Semiconductor leaders including Nvidia (NASDAQ: NVDA), Broadcom (NASDAQ: AVGO), Micron Technology (NASDAQ: MU) and Advanced Micro Devices (NASDAQ: AMD) faced heavy selling during the session. Pressure also spread to Oracle (NYSE: ORCL) and AI cloud providers CoreWeave (NASDAQ: CRWV), Nebius Group (NASDAQ: NBIS) and IREN (NASDAQ: IREN). The economic issue is not limited to whether demand for AI remains strong. It also involves the timing and financing of the capacity needed to serve that demand. If a project takes longer to receive approval or connect to power, spending can continue while the start of revenue generation moves further into the future. That combination can make borrowing more difficult and reduce the present value of expected profits. The risk is especially significant for companies relying heavily on external financing.

Existing Capacity Could Become More Valuable

Potential restrictions could create an uneven outcome across the AI industry. Microsoft (NASDAQ: MSFT) and Amazon (NASDAQ: AMZN), for example, have diversified businesses and substantial internally generated cash flow. Smaller AI infrastructure providers can be more exposed to borrowing costs, refinancing conditions and construction delays. Existing operational capacity could become more valuable if new supply becomes harder to build. Timing also matters. Much of the capacity expected to become available in 2027 is already under construction, while projects planned for 2028 could face greater exposure to new permitting hurdles. That distinction argues against treating every announced project as equally vulnerable to political changes.

Macroeconomic Report: Low Claims Contrast With Market Stress

Initial Jobless Claims Fall to 189,000

The Labor Department reported that initial unemployment claims fell by 6,000 to a seasonally adjusted 189,000 for the week ended October 31. The four-week moving average declined to 194,750. Continuing claims increased by 23,000 to 1.718 million for the week ended October 24. The combination suggests an economy with limited layoffs, but a less straightforward picture for people already out of work. Falling initial claims indicate that employers are generally retaining staff, while rising continuing claims warrant attention when assessing how quickly displaced workers find new positions. Weekly figures remain volatile and subject to revision. For markets, the implication is important: a steep equity decline does not necessarily mean the economy has entered an abrupt contraction. Thursday’s labor data instead pointed to continued employment resilience, even as many sharply reduced exposure to riskier assets.

Productivity Offers a Potential Inflation Offset

Thursday’s economic coverage reported that third-quarter nonfarm business productivity increased at a 3.6% annualized rate, while unit labor costs declined 0.7%. Those figures suggest that output gains were helping contain labor costs per unit of production. Higher productivity can support profit margins and reduce inflation pressure without requiring a comparable reduction in economic activity. The relationship matters because unit labor costs depend on both compensation growth and output per hour. Faster productivity growth can offset rising hourly pay.

Bank of England Raises Rates to 4%

The Bank of England increased its policy rate by 0.25 percentage points to 4%, with an 8-to-1 vote. The dissenting member preferred a larger increase to 4.25%. The central bank cited rising energy costs and projected that U.K. inflation could reach approximately 5% by the middle of 2027. The decision underscored a broader macroeconomic tension. Better productivity can help ease domestic cost pressures, but prolonged energy disruptions can push inflation in the opposite direction. The Bank of England’s action does not determine Federal Reserve policy, but it demonstrates why a global shift toward easier monetary conditions cannot be taken for granted.

Fear, Treasury Yields, Gold, Oil and Bitcoin

The jump in the VIX, the market’s fear gauge, lower Treasury yield and higher gold price were consistent with a more defensive market environment. Bitcoin’s decline, by contrast, tracked the retreat in growth-oriented and other risk-sensitive assets. Oil’s rebound added another complication. Uncertainty surrounding the Middle East conflict supported crude prices after the previous session’s sharp decline, leaving markets to weigh both geopolitical risks and the inflation consequences of more expensive energy.

Alphabet Plans $17 Billion Wyoming Data Center

Alphabet (NASDAQ: GOOGL, NASDAQ: GOOG) provided a significant counterpoint to the AI selloff through Google’s announced $17 billion investment in its first Wyoming data center. The project indicates that major infrastructure commitments continue even as political resistance complicates the broader construction outlook. The development involves energy and infrastructure partners, with part of its power expected to come from a planned 702-megawatt fuel-cell project using equipment supplied by Bloom Energy (NYSE: BE). American Electric Power (NASDAQ: AEP) and Black Hills (NYSE: BKH) were also identified among the project partners. The announcement illustrates the difference between long-term AI demand and near-term execution risk. Large commitments remain in place, but the availability of electricity, local approvals and financing increasingly influences where projects move forward and which companies can deliver them.

AppLovin Earnings Highlight Growth Beyond AI Hardware

AppLovin (NASDAQ: APP) delivered a strong earnings counterpoint to the broader technology rout. Its third-quarter results, released November 4, showed revenue of $2.185 billion, up 55% from a year earlier, and net income of $1.439 billion, up 72%. Diluted earnings per share reached $4.30.

Additional highlights included:

• Adjusted EBITDA of $1.842 billion, representing an 84% margin.
• Free cash flow of approximately $1.418 billion.
• Fourth-quarter revenue guidance of $2.365 billion to $2.395 billion.
• An additional $3.2 billion share-repurchase authorization, bringing the available authorization to $3.6 billion at the end of October.

AppLovin (NASDAQ: APP) shares rallied sharply during Thursday’s trading. Its results showed that company-specific revenue growth and cash generation could still attract buying even as the broader market questioned AI infrastructure valuations.

Warby Parker Reports Double-Digit Growth Ahead of Intelligent Eyewear Launch

Warby Parker (NYSE: WRBY) reported third-quarter revenue of $244.7 million, an increase of 10.4% from a year earlier. Active customers rose 3% to 2.74 million, while average revenue per customer increased 6.7% to $342. The eyewear company generated $5.6 million in net income and $28.6 million in adjusted EBITDA. It opened 12 net new stores during the quarter, finishing the period with 364 locations. Management narrowed its full-year revenue outlook to $966 million to $976 million and reaffirmed adjusted EBITDA guidance of $117 million to $119 million. Warby Parker (NYSE: WRBY) also said preorders for its first Intelligent Eyewear collection would begin November 12, with deliveries expected during the holiday season. However, third-quarter free cash flow was negative $2 million as the company funded launch-related spending, highlighting the near-term cash requirements associated with product expansion.

Wendy’s Rejects $1.4 Billion Offer and Pursues Turnaround

Wendy’s (NASDAQ: WEN) rejected a $1.4 billion takeover proposal from a group led by Nelson Peltz’s Trian Fund Management. The proposal offered $7.35 per share in cash, but the board’s independent committee concluded that it undervalued the company’s standalone prospects. Chief Executive Bob Wright instead outlined a turnaround strategy called Dave’s Way, centered partly on improving food quality and restoring the customer value proposition. Planned changes include thicker bacon, upgraded lettuce, improved salads and changes to the Frosty dessert. The operating challenge remains substantial. Wendy’s (NASDAQ: WEN) reported a 5.7% decline in U.S. same-store sales, third-quarter revenue of approximately $547 million and adjusted earnings of $0.13 per share. The results highlight the distinction between reporting better-than-expected quarterly earnings and demonstrating a sustained recovery in customer demand.

What Matters Next for the Stock Market

Friday’s employment report is the next major scheduled test of the economic outlook. Thursday’s claims figures established a relatively resilient starting point, but payroll growth and wages will provide a broader view of labor demand and potential inflation pressure. Three developments deserve particular attention:

1. AI project execution. Announced spending remains substantial, but permitting, electricity access and financing conditions will help determine when those commitments become revenue-producing capacity.
2. The balance between productivity and energy inflation. Stronger output per hour can reduce labor-cost pressure, while elevated energy prices can keep broader inflation risks alive.
3. Earnings quality and cash generation. AppLovin (NASDAQ: APP), Warby Parker (NYSE: WRBY) and Wendy’s (NASDAQ: WEN) illustrate how differently companies are navigating growth, spending and consumer demand beneath the major indexes.

Updates From the VP Watchlist

Amwell® (NYSE: AMWL)

Amwell® (NYSE: AMWL), a leading provider of technology-enabled care, closed at $12.17. Amwell reported after the close Nov. 3 the company’s Third Quarter 2026 Highlights: Recorded Total Revenue of $49.0 million, exceeding the previously provided financial guidance range for Q3, Achieved subscription revenue of $23.9 million, Recorded Amwell Medical Group (“AMG”) visit revenue of $23.7 million, Reported gross margin of 53%, Net loss was ($11.0) million, compared to ($9.6) million in the second quarter of 2026, Adjusted EBITDA of ($3.6) million compared to ($1.2) million in the second quarter of 2026, & Total visits on the platform were 0.8 million.

Financial Outlook: The Company is raising its 2026 revenue outlook, and adjusted EBITDA outlook, and reaffirming its AMG visit guidance., Revenue in the range of $204 million to $206 million increased from $200 million to $205 million
AMG visits between 1.32 million and 1.37 million Adjusted EBITDA in the range between ($8) million to ($7) million increased from ($9) million to ($7) million.

The Company also provided financial guidance for Q4 2026 Revenue and adjusted EBITDA:

• Q4 revenue in the range of $48 million to $50 million
• Q4 adjusted EBITDA expected to in the range of $0 million to $1 million.

The Company also reiterated its objective to achieve positive cash flow from operations in the fourth quarter of 2026.

Serina Therapeutics (NYSE: SER)

Serina Theraeuptics (NYSE: SER, $1.61) is a clinical-stage biotechnology company developing a pipeline of wholly owned drug product candidates to treat neurological diseases and other indications. Serina’s POZ PlatformTM provides the potential to improve the integrated efficacy and safety profile of multiple modalities including small molecules, RNA-based therapeutics and antibody-based drug conjugates (ADCs). Serina is headquartered in Huntsville, Alabama on the campus of the HudsonAlpha Institute of Biotechnology.

On Thursday, September 24, 2026, Serina CEO Steve Ledger discussed discuss Serina’s programs’ progress during Tribe Public’s “A New Approach to Advanced Parkinson’s Disease: Serina Discusses SER-252’s Clinical Progress”webinar, followed by a live Q&A. You may view it below.

SER announced (Sept. 9) that the independent Safety Monitoring Committee (SMC) has completed its blinded review of Cohort 1 of the ongoing Phase 1b registrational study of SER-252 in patients with advanced Parkinson’s disease and recommended that the study advance to Cohort 2. Cohort 1 evaluated the lowest dose level in the single-ascending-dose portion of the study. In addition to supporting continued dose escalation, blinded Cohort 1 observations showed a pharmacokinetic profile consistent with the sustained apomorphine exposure SER-252 is designed to provide and included sustained periods of improvement in motor function in individual patients on exploratory clinical measures.

Eupraxia Pharmaceuticals Inc. (EPRX)

Eupraxia Pharmaceuticals Inc. (EPRX, $6.60), a clinical-stage biotechnology company leveraging its proprietary Diffusphere™ technology designed to optimize local, controlled drug delivery for applications with significant unmet need, announced (Oct. 15) that the ongoing RESOLVE study evaluating the safety and efficacy of EP-104GI for the treatment of Eosinophilic Esophagitis (“EoE”) has reached its enrollment target. “This is a significant milestone for the RESOLVE trial and the development of EP-104GI as a potential treatment option in EoE” said Dr. James Helliwell, Chief Executive Officer of Eupraxia. “We look forward to our interim analysis in December where we will be reporting on symptoms, histologic findings and safety in the first 60 patients in Phase 2b to reach 6 months. Data will also be available on the patients at 3, 9- and 12-month timepoints giving a fulsome interim look at the RESOLVE Trial”.

Modular Medical, Inc. (NASDAQ: MODD)

Modular Medical, Inc. (NASDAQ: MODD, $1.28), a commercial-stage medical device company preparing for the full commercial launch of its next-generation Pivot™ tubeless patch pump, announced (Oct. 27) that it has received a positive decision from its notified body regarding certification of its quality management system under ISO 13485:2016. The notified body is designated under the European Union Medical Device Regulation (“MDR”).

MODD announced (October 15) the launch of two innovative digital education resources designed to assist people living with diabetes build familiarity and confidence with insulin therapy ahead of formal training on the Pivot insulin delivery system. Developed in partnership with Relevate Health Games, the new tools use game-based technology to walk patients through the skills needed for insulin pump therapy. The resources are designed to help reduce barriers to adoption by allowing prospective users to become familiar with pump therapy before beginning formal onboarding. The first educational module gives users a virtual, hands-on walkthrough of the Pivot insulin delivery system. In approximately 15 minutes, users can visualize how to unpack the system, prepare and apply the pump, and understand the basic operational functions. The Pivot module was first previewed at the ADCES 2025 Annual Conference in August 2025. Healthcare providers may also use the platform to gauge a patient’s interest in pump therapy and ability to navigate basic operational tasks associated with insulin delivery devices. The experience offers clinicians valuable insight into patient engagement, learning readiness, and willingness to transition from multiple daily injections to a more advanced insulin delivery approach.

MODD announced (September 4) that it has secured a contract with a national U.S. pharmacy benefit manager (PBM) in the United States. Pursuant to the contract, the Company’s Pivot insulin delivery system is now available through the national PBM. The Company believes the engagement with this national PBM represents a significant step forward in broadening patient access to the Company’s Pivot tubeless patch pump and will further validate the Pivot pump as an accessible therapeutic option for people living with diabetes.

MODD announced (September 3) that the U.S. Food & Drug Administration (FDA) has cleared a set of software enhancements to its Pivot insulin delivery system, further expanding the system’s functionality and providing users with greater flexibility and customization options in bolus dosing, an enhanced user-interface (UI), and other software upgrades.

MODD CEO, Jeb Besser, co-hosted a Tribe Public’s CEO Presentation and Q&A Webinar Event titled “The Road To Revenue: Modular Medical’s Strategy For Launching Pivot,” that was held Friday, September 4, 2026.. You may watch the event video below now if you missed it below now.

Doximity, Inc. (NYSE: DOCS)

Doximity (NYSE: DOCS, $33.18) is the leading digital platform for U.S. medical professionals. The company’s network members include more than 85% of U.S. physicians across all specialties and practice areas. Doximity provides its verified clinical membership with digital tools built for medicine, enabling them to collaborate with colleagues, stay current on medical news and research, manage their careers and on-call schedules, streamline documentation and administrative paperwork, and conduct virtual patient visits.

DOCS announced that its has launched DoseCheck, a free additional safety layer in Doximity Ask that instantly checks every AI-generated medication dosing claim against a structured drug database to reduce treatment errors and increase patient safety. The probabilistic nature of AI means that it predicts the most likely answer based on the data it’s been trained on. This can lead to different but equally confident answers to the same prompt. When it comes to drug dosing, doctors need to know that the dosing recommendations AI generates are consistently accurate. Building on Doximity’s existing work around AI safety, DoseCheck adds a deterministic, rule-based verification step to all dosing recommendations in Doximity Ask, Doximity’s clinical decision making support tool. By checking against FDA labeling and professional guidelines, DoseCheck increases accuracy to more than 99%.

Doximity and Wolters Kluwer Health, announced (Oct. 20) that UpToDate’s trusted, evidence-based, clinical content will be accessible directly within Doximity’s fast-growing AI clinical decision support tool, Ask.

DOCS announced (Oct. 13) it has extended its 13-year partnership with U.S. News & World Report, the nation’s most trusted source of independent healthcare information, rankings and guidance to help patients identify the best care for their needs.

Nvidia (NVDA, $181.60, -9.26%)

NVIDIA Corp. (NASDAQ: NVDA), remains at the forefront of the AI infrastructure expansion, supported by new cloud-computing deployments in Mexico and a major chip-financing agreement involving HIVE Digital. Its approximately $108 billion quarterly revenue outlook underscores the scale of anticipated demand, while investors look to margin performance and upcoming product transitions as key drivers of sustained, profitable growth..

Alphabet (NASDAQ: GOOGL $282.57, -2.20%)

Alphabet (NASDAQ: GOOGL, GOOG) is confronting an expensive paradox: Artificial intelligence is bringing more activity to Google while making the economics of that activity harder to predict. Yet the latest results offer a more constructive interpretation than a simple obituary for search. Third-quarter revenue increased 25% to $127.6 billion. Operating income climbed 30% to $40.6 billion. Google Cloud revenue more than doubled. Those are unusual credentials for a company supposedly being escorted toward technological irrelevance. At the close on Thursday, Alphabet shares traded at $283.82, following a 12.64% decline, many are clearly demanding more proof and fewer architectural renderings of future data centers. That skepticism is understandable. But the opportunity lies in distinguishing a difficult transition in monetization from a collapse in demand. Google’s problem is not that people have stopped asking questions. According to management, its year-over-year search-query growth reached its highest rate in five years during the third quarter. The more consequential question is how quickly Google can turn its expanding AI audience into attractive, durable cash flow. Wall Street has little patience for a renovation when the contractor’s estimate begins with a trillion.

DISCO Reports Revenue Growth and Positive Adjusted EBITDA

Legal technology company CS Disco (LAW, $5.64) reported third-quarter revenue of $45.3 million, up 11% from a year earlier. Software revenue increased 10% to $38.6 million, while its GAAP net loss narrowed to $5.0 million from $13.7 million. The company also reported approximately $0.1 million in positive adjusted EBITDA, reaching that milestone one quarter ahead of its expectations. Management highlighted continued software growth and demand for AI-enabled litigation tools. The distinction between adjusted profitability and GAAP results remains important. Positive adjusted EBITDA marked operating progress, but CS Disco (LAW) still reported a net loss. Its full-year outlook called for revenue of $176.1 million to $178.1 million and an adjusted EBITDA loss of $5.3 million to $6.8 million.

Space Exploration Technologies Corp. (SPCX, $123.62,
(-9.05%)

SpaceX found itself caught in a broader AI-infrastructure selloff as financing worries mounted and political scrutiny intensified following Democratic gains that delivered control of Congress and Texas. Its AI ambitions remain a cornerstone of its valuation, leaving analysts to weigh whether surging revenue can keep pace with hefty capital spending, execution challenges, and regulatory uncertainty, a balancing act for which even rocket science offers no tidy solution.

The Sources

1. November 5 stock market live updates and economic releases
2. AI data-center capacity and the post-midterm policy outlook
3. November 5 market developments, technology selling and earnings updates
4. Wendy’s (NASDAQ: WEN) takeover rejection and turnaround strategy
5. Alphabet (NASDAQ: GOOGL, NASDAQ: GOOG) Wyoming data-center investment
6. AppLovin (NASDAQ: APP) third-quarter 2026 financial results
7. Warby Parker (NYSE: WRBY) third-quarter 2026 results
8. U.S. Department of Labor: November 5, 2026 unemployment insurance weekly claims
9. U.S. Bureau of Labor Statistics: Productivity and costs, revised second-quarter 2026 release and methodology
10. Bank of England: November 2026 monetary policy decision and minutes