After a tech-led rout erased nearly $3 trillion USD in S&P 500 market value and pushed the Nasdaq into a correction, chip names led a premarket bounce Friday ahead of the October jobs report.
By Methodical Jon | Nov 6, 2026
Chip stocks bounced in Friday, November 6th 2026 premarket trading after a brutal Thursday for anything tied to artificial intelligence. A tech-led rout wiped nearly $3 trillion USD off the market value of S&P 500 companies, Reuters reported, and the Nasdaq Composite fell into a formal correction. By about 6:24 a.m. ET Friday, Nvidia (NASDAQ: NVDA) was up 4.5% in premarket trading and peers AMD, Intel, Broadcom and Micron were higher by 4.6% to 8.2%, per the same Reuters dispatch.
What happened
Thursday's closing numbers from Reuters via Yahoo Finance:
Nasdaq Composite: -5.52% to about 24,315 -- deepest one-day drop in 19 months, more than 10% below its October 6 record (a correction), and on track for a fourth straight weekly fall
S&P 500: -4.36% to 7,353.73
Dow Jones Industrial Average: -3.44% to 51,523.06
Philadelphia Semiconductor Index: plunged over 12%
Nvidia: down more than 9%, its worst day since January 2025's DeepSeek scare
CNBC said the Magnificent Seven lost more than $1 trillion USD in aggregate market cap Thursday, with Nvidia alone shedding more than $440 billion USD and turning negative year to date (about -2.6%). All 11 S&P 500 sectors finished red. Information technology fell 7.30%, its worst day since March 16, 2020, and XLK dropped 8.04%.
The CBOE Volatility Index logged its biggest one-day jump in about 19 months Thursday, Reuters said; CNBC put the gain at 11.57 points. Yahoo Finance said the VIX jumped about 70% to 28; Reuters had it slightly lower Friday morning at 26.70.
At about 6:24 a.m. ET Friday, Dow e-minis were down 471 points (-0.91%), S&P 500 e-minis were up 21.75 (+0.29%), and Nasdaq 100 e-minis were up 378.5 (+1.41%), Reuters reported. Elsewhere, Atlassian fell 14.1% after first-quarter results, while Airbnb climbed 12.2% after raising its full-year 2026 revenue growth forecast.
Context
We covered the morning leg of Thursday's chip plunge here. Weak detail from Qualcomm and Arm lit the spark. Democratic midterm wins, including in key data-center states, added the fuel: fears that tougher rules could slow the AI data-center buildout that had helped push stocks to records this year.
Jane Gibbons, equity strategist at Jefferies, told Reuters: "We view Thursday's selloff as reactionary, not a fundamental reset, driven by a collision of concerns around AI spend, policy and inflation." Even after the drop, the S&P 500 was still up about 7.4% year to date and the Nasdaq about 4.6%.
Why it matters
Nearly $3 trillion USD gone from S&P 500 market value in a day is a repricing of the AI infrastructure trade. Mag7 names alone lost more than $1 trillion USD in market cap.
The premarket bounce tests whether Thursday was panic or the start of a deeper unwind. The October jobs report is due at 8:30 a.m. ET Friday; economists expect about 65,000 jobs added, Yahoo Finance reported. Traders were pricing in a more than 65% chance of a December Fed hike via CME FedWatch, Reuters said.
What to watch next
The 9:30 a.m. ET open. Premarket chip gains can fade once cash markets open.
October payrolls at 8:30 a.m. ET. The print feeds December hike odds.
Whether Nasdaq holds the correction. A 10% drop from the October 6 high is the technical line.
Nvidia's next report. Hardware demand vs. policy fear still needs earnings confirmation.
The money lesson
1. Corrections start with a number. The Nasdaq is officially 10% off its high -- a label markets watch, not a prediction by itself.
2. A $3 trillion USD wipe can leave indexes up for the year. Mag7 lost more than $1 trillion USD and the S&P was still up about 7.4% YTD.
3. Policy risk is now priced into AI hardware. Midterm wins in data-center states turned regulation into a tape driver.
4. Reactionary selloffs can reverse -- and reverse again. Neither Gibbons' read nor the premarket bounce replaces the jobs number.
For how sharp selloffs and crash dynamics play out, listen to Episode 13 - Financial Crashes. It fits because Thursday moved indexes, chips and volatility together in hours.
At the time of writing (~7:00 a.m. ET Friday, Nov 6, 2026), Nasdaq futures were higher and chip names were bouncing in premarket trading; those moves can change by the cash open. This article is for informational purposes only and is not financial advice.
Sources: - Reuters/Investing.com (Nov 6, 2026): https://www.investing.com/news/stock-market-news/nasdaq-futures-rise-after-steep-ai-selloff-as-chip-stocks-stabilize-5007026 - Reuters/Yahoo Finance (Nov 5, 2026): https://finance.yahoo.com/markets/stocks/articles/p-500-futures-steady-midterm-105838388.html - CNBC (Nov 5, 2026): https://www.cnbc.com/2026/11/05/stock-market-selloff-ai-fears.html - Yahoo Finance live (Nov 6, 2026): https://finance.yahoo.com/markets/live/stock-market-today-friday-november-6-dow-sp-500-nasdaq-jobs-report-091927729.html - Prior MM chip coverage: https://www.methodicalmillions.com/read/chip-stocks-11-percent-worst-day-since-2020-qualcomm-arm-ai-selloff
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This article may be AI-assisted and is subject to errors and omissions.