US stocks suffered their heaviest fall in about 18 months, with the Nasdaq down 5.5% on selling in chip and AI stocks amid worries that a Democrat-controlled Congress could slow data-center construction. Markets cut the odds of a December Fed hike, gold (XAUUSD) held near $4,087, and the BoE raised rates to 4.00%. Today the focus is Nonfarm Payrolls at 13:30 GMT.
Updated Fri 6 Nov 2026 · 00:00 GMT · Prices as of the New York close Thu 5 Nov 2026
Key takeaways
- 1US stocks tumble: Nasdaq −5.5%, S&P 500 −4.4%, Dow −3.4%, and the chip index fell about 12% on worries that Democrats could use their majority in Congress to slow AI data-center construction
- 2Markets cut the odds of a December Fed hike to about 66–69%. Short-dated yields fell about 12bp, and gold rose about 0.7% to around $4,087. The Aussie was the weakest G10 currency, down about 1%
- 3BoE hikes to 4.00%: 8–1 vote; the BoE sees UK inflation rising to 4.9% in Q2 next year. The pound is near 1.3452
- 4Today: October Nonfarm Payrolls at 13:30 GMT. Markets expect 65K with unemployment at 4.2%, followed by the University of Michigan consumer sentiment index at 15:00 GMT.
Today’s events Fri 6 Nov 2026
- US Nonfarm Payrolls (Oct)Forecast 65K · Previous 29KUnemployment forecast 4.2% · Average hourly earnings forecast +0.3% m/m (previous +0.1%)Read analysis →Due today at 13:30 GMTHIGH
- MED
- Alberto Musalem (St. Louis Fed) speaksWatch for his view on a December rate hikeLOW
- UMich consumer sentiment (Nov, preliminary)Forecast 48.0 · Previous 48.0Also watch 1-year and 5-year inflation expectationsMED
Market overview
Approximate prices after the New York close, Thursday 5 Nov 2026 · FX and % changes from Trading Economics · Spot gold $4,087 per Kitco late in the US session · WTI closed at $90.52 and Brent at $98.29 per Kitco
Tech stocks slump, markets pare Fed bets, gold holds above $4,000
On Thursday (5 Nov) US stocks fell sharply across the board. The Nasdaq closed down 5.52% at 24,315, entering a correction. The S&P 500 lost about 4.4%, its steepest drop since April 2025 according to Kitco, and the Dow Jones fell 1,833 points, or 3.44%. The SOX chip index slid about 12%, Nvidia lost about 9% and AMD about 17%. Reuters reported that investors worry Democrats, who now control both chambers of Congress, could slow AI data-center construction. Read about the election results in our breaking news on Democrats controlling both chambers.
US data were mixed. Initial jobless claims fell to 189,000, below the forecast of about 196,000. Q3 labor productivity rose 3.6%, above the 2.8% forecast, and unit labor costs fell 0.7% versus an expected 0.6% rise, easing worries about wage-driven inflation. Markets therefore cut the odds of a Fed rate hike in December to about 66–69% from about 83% on Wednesday, as Kitco reported. Short-dated yields fell about 12bp, and the 10-year yield dropped to around 4.82% intraday, its lowest since early September.
The dollar was little changed overall, but the yen strengthened on safe-haven demand, with USD/JPY falling to around 157.66, while the Aussie was the weakest G10 currency, down about 1%. Gold rose as high as $4,148, its highest since 20 Oct, before easing to close near $4,087. Oil bounced after three days of heavy losses: WTI closed at $90.52, up 2.7%, and Brent at $98.29, up 3.9%, on lingering shipping risks in the Persian Gulf. In the UK, the BoE raised rates by 0.25% to 4.00% on an 8–1 vote, with Catherine Mann voting for a 0.50% hike, and the BoE expects inflation to rise to 4.9% in Q2 next year. Read the previous day’s overview in Forex News 4 Nov.
“We are now seeing something like a buyers’ strike in tech stocks”
Keith Lerner, Truist · 5 Nov (via Reuters, translated)
Asset by asset
Gold touched $4,148 before easing, still holding above $4,075
Gold closed near $4,087, up about 0.7%, after touching $4,148 intraday, its highest since 20 Oct, before profit-taking in line with falling stocks. Kitco sees resistance at $4,146 and $4,212 and support at $4,075 and $3,989. If today’s NFP is weaker than expected and yields keep falling, gold could retest $4,146; if the data are strong enough to revive Fed hike bets, price could pull back to test support. Latest gold analysis →
Pound steady after BoE hike
GBP/USD closed near 1.3452, down about 0.1%, after rising to around 1.3470, its highest since mid-September, around the BoE decision. Governor Andrew Bailey said this hike should not be seen as the start of a long series of increases, but if the Middle East conflict does not end, it may not be the last. First resistance is 1.3470, then the psychological 1.3500, with psychological support at 1.3400.
Yen firms on safe-haven demand
USD/JPY closed near 157.66, down about 0.5%. Trading Economics said the yen strengthened for a second straight day, supported by safe-haven demand as stocks fell and by narrower yield spreads. 158.00 is now first resistance, followed by the psychological 160.00, with psychological support at 157.00 below. If NFP is weaker than expected, USD/JPY could test this support.
What to watch today
Today’s highlight is October Nonfarm Payrolls at 13:30 GMT. Markets expect jobs growth of 65K, up from 29K, unemployment steady at 4.2% and average hourly earnings up 0.3%. Canadian jobs data are released at the same time, followed by the UMich consumer sentiment index at 15:00 GMT. After the sharp stock selloff, markets may react more than usual to any surprise. See all central bank meeting dates in the central bank rates table.
- China trade data, OctTue 10 Nov
- Next BoE meeting17 Dec
Our view
The election result that lifted markets on Wednesday turned into pressure on tech stocks on Thursday as markets began pricing in regulatory risk to AI investment while paring bets on a December Fed hike. Gold is still holding above $4,000 despite late profit-taking. Today’s NFP will be a key test of whether markets return to pricing a Fed hike.
- 1Today’s NFP may set the direction for yieldsWith the odds of a Fed hike falling quickly, a big surprise could swing the dollar and gold sharply either way
- 2Stock-market volatility may spill into ForexIf tech-stock selling continues, the yen could find support, while the risk-sensitive Aussie may stay under pressure
- 3Can gold hold above $4,075?If it holds, resistance at $4,146 could be tested again. In high-impact news like this, reducing position size and using a stop loss can help manage risk
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Sources (13)
- Kitco – PM Report: gold / stocks / oil / US data (5 Nov)
- Kitco – AM Report: jobless claims / productivity (5 Nov)
- Reuters (via GBAF) – Trading Day: tech stocks / yields / G10 (5 Nov)
- Motley Fool – US stock market close (5 Nov)
- Bloomberg (via Yahoo Finance) – BoE hikes to 4% (5 Nov)
- MoneyWeek – BoE 8–1 vote (5 Nov)
- Trading Economics – Currencies (5 Nov)
- Trading Economics – Pound
- Trading Economics – Euro
- Trading Economics – Gold
- Trading Economics – Crude oil / Persian Gulf
- Trading Economics – October NFP forecast
- Trading Economics – Economic calendar 6 Nov
Risk warning: Trading Forex, gold and CFDs carries a high level of risk and you may lose all of your capital. This news is a summary for educational purposes, not investment advice. Prices in this article may have changed by the time you read it.
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