{"id":74246,"date":"2026-11-06T03:08:18","date_gmt":"2026-11-06T07:08:18","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-tumble-as-ai-slowdown-fears-and-us-jobs-data-take-center-stage\/74246\/"},"modified":"2026-11-06T03:08:18","modified_gmt":"2026-11-06T07:08:18","slug":"global-markets-tumble-as-ai-slowdown-fears-and-us-jobs-data-take-center-stage","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-tumble-as-ai-slowdown-fears-and-us-jobs-data-take-center-stage\/74246\/","title":{"rendered":"Global Markets Tumble as AI Slowdown Fears and US Jobs Data Take Center Stage"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>Nasdaq 100 (<a href=\"\/stock\/NDX\">NDX<\/a>) plunged 6.36% on Thursday<\/strong>, marking its worst session since March 2020 as a Democratic sweep in the US midterms sparked fears of tighter regulation and a slowdown in the <strong>AI data center buildout<\/strong>.<\/li>\n<li><strong><a href=\"https:\/\/stockmarketwatch.com\/metal\/gold\" data-internallinksmanager029f6b8e52c=\"4\" title=\"gold price today\">Gold prices<\/a> retreated below $4,050\/oz<\/strong> on Friday as the <strong>US Dollar Index (DXY)<\/strong> firmed ahead of the critical October <strong>US Jobs Report<\/strong>, which is expected to show a modest gain of 65,000 nonfarm payrolls.<\/li>\n<li><strong>Brent Crude (<a href=\"\/stock\/BZ\">BZ<\/a>) reclaimed the $100\/bbl level<\/strong> following fresh attacks on commercial vessels in the Middle East, though benchmarks remain on track for a 12% weekly decline amid shifting geopolitical expectations.<\/li>\n<li><strong>Barclays upgraded Ryanair (<a href=\"\/stock\/RYAAY\">RYAAY<\/a>) to Overweight<\/strong> and <strong>Deutsche Lufthansa (<a href=\"\/stock\/DLAKY\">DLAKY<\/a>) to Equal-Weight<\/strong>, signaling a more constructive view on European carriers despite persistent fuel price volatility.<\/li>\n<\/ul>\n<h2>Market Rout Driven by AI Policy Shift<\/h2>\n<p>US equity markets suffered a massive &quot;risk-off&quot; session on Thursday, with the tech-heavy Nasdaq leading the decline. The sell-off was triggered by the Democratic Party&#39;s sweeping victory in the US midterm elections, which investors interpret as a precursor to increased regulatory scrutiny over the <strong>AI sector<\/strong>. Specifically, the success of 39 out of 45 ballot measures aimed at restricting data center construction has raised alarms about a potential multi-month low for chipmakers and &quot;neocloud&quot; providers.<\/p>\n<p>The rout wiped out approximately <strong>$2.5 trillion in market value<\/strong> in a single day. Major chip and memory names like <a href=\"https:\/\/stockmarketwatch.com\/stock\/NVDA\" data-internallinksmanager029f6b8e52c=\"15\" title=\"stock: NVDA\">Nvidia<\/a> (<a href=\"\/stock\/NVDA\">NVDA<\/a>) and <a href=\"https:\/\/stockmarketwatch.com\/stock\/MU\" data-internallinksmanager029f6b8e52c=\"20\" title=\"Stock: MU\">Micron<\/a> Technology (<a href=\"\/stock\/MU\">MU<\/a>) saw significant pressure as the market priced in a slower pace for AI infrastructure expansion. This sentiment spilled over into APAC markets on Friday, where the South Korean <strong>KOSPI<\/strong> triggered multiple &quot;sidecars&quot; (trading halts) following an 8% plunge at the open.<\/p>\n<h2>Focus Shifts to US Labor Market<\/h2>\n<p>Investors are now pivoting to the <strong>October US Jobs Report<\/strong>, set for release at 8:30 a.m. ET. Economists anticipate a resilient but moderating labor market, with nonfarm payrolls expected to rise by <strong>65,000<\/strong> and the unemployment rate holding steady at <strong>4.2%<\/strong>. This data is critical for the <strong>Federal Reserve&#39;s<\/strong> December policy decision, where markets currently price in an 80% probability of a quarter-point rate hike.<\/p>\n<p>Ahead of the report, the <strong>US Dollar<\/strong> has shown renewed strength, weighing on precious metals. <strong>Gold<\/strong> fell below the <strong>$4,050<\/strong> mark on Friday morning, paring gains from earlier in the week when it touched a two-week high of $4,147. Despite the intraday dip, bullion remains on track for its biggest weekly gain since August, supported by a broader retreat in US Treasury yields earlier in the week.<\/p>\n<h2>Energy and Aviation Sector Developments<\/h2>\n<p>In the energy markets, <strong>Brent Crude<\/strong> hovered around <strong>$100.30 per barrel<\/strong>, recovering from a sharp mid-week sell-off. The rebound is attributed to short-covering and renewed supply concerns following drone attacks on Russian refineries and maritime tensions in the Middle East. However, the commodity is still facing a significant weekly loss as traders weigh the possibility of a diplomatic resolution to the Iran conflict under a new US legislative landscape.<\/p>\n<p>In corporate news, <strong>Barclays<\/strong> issued a series of upgrades for the European airline sector. Ryanair (<a href=\"\/stock\/RYAAY\">RYAAY<\/a>) was raised to <strong>Overweight<\/strong> with a <strong>\u20ac29 target<\/strong>, while Deutsche Lufthansa (<a href=\"\/stock\/DLAKY\">DLAKY<\/a>) was moved to <strong>Equal-Weight<\/strong> with an <strong>\u20ac8.40 target<\/strong>. Analysts noted that while fuel costs remain a headwind, the airlines are showing resilience in unit revenue and capacity management, particularly as the &quot;Lufthansa Airlines turnaround&quot; becomes a top management priority.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Nasdaq 100 (NDX) plunged 6.36% on Thursday, marking its worst session since March 2020 as a Democratic sweep 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