Wall Street rebounds after AI selloff
The gist
The S&P 500 rose 2.3% to 7,549.94 on Monday as chip stocks recovered from a global AI-driven selloff.
The swing shows how fast AI trade sentiment can reverse.
How it unfolded
- Nov 5, 2026Wall Street's fear gauge, the Cboe Volatility Index (.VIX), logged its biggest intraday jump in more than 18 months as the AI trade stumbled and investors hedged in the equity options market.
- Nov 6, 2026AI stocks bounced back, halting a worldwide selloff: the S&P 500 rose 0.3% to 7,376.86, the Nasdaq composite rose 1.1% to 24,579.42 and the Dow fell 237.33 points, or 0.5%, to 51,285.73. Nvidia climbed 2.8% and the semiconductor index (.SOX) rose 4.6% after plunging over 12% the previous session.
- Nov 6, 2026Indexes dropped 6% in Tokyo and Seoul following the U.S. market's plunge on Thursday; South Korea's Kospi fell 7.4%, Japan's Nikkei 225 dropped 5.7% and Germany's DAX lost 1.9%.
Key terms
- S&P 500
- A stock market index tracking the performance of 500 large US companies listed on American exchanges.
- midterm elections
- US general elections held near the midpoint of a president's four-year term, when all House seats and about a third of Senate seats are contested.
- Cboe Volatility Index
- A volatility index based on S&P 500 options, often called the fear gauge.
Source: Wikipedia