Market Review: November 02, 2026

Closing Recap

Monday, November 02, 2026

What initially looked like a promising start to the new trading month, U.S. stock markets pulled back off morning highs above 1% for most averages, as technology (XLK, SOX, QQQ) failed to hold the early gains amid another rout in semis and Ai related plays, continuing the October trend. Still, overall market breadth was positive with 8 of 11 S&P sectors higher, led by the names that rallied in October (Consumer Staples, REITs, Utilities, Financials). Technology (XLK -2.95%) and Energy (XLE -3.96%) were the biggest drags. Precious metals were a bright spot, bouncing off 1-year lows for gold and silver amid the pullback in oil prices. While tech remains the key overall market driver lower, attention turns this week to tomorrow’s midterm elections where Democrats are expected to flip the House Blue, while the Senate remains a toss up at this point, though prediction markets are forecasting a flip to Blue as well. Monthly jobs data also in focus with ADP private payrolls, JOLTs job openings and Nonfarm payrolls on the calendar this week. Tonight after the bell we see earnings from Apple Inc. (AAPL), coming off recent all-time highs before a heavy earnings calendar the remainder of the week with 29% of the S&P 500 due to report. The amazing part on this latest tech pullback comes as Treasury yields have come down notably from early October highs and oil prices a sharp downturn today.

• ISM U.S. manufacturing activity index 55.5 in October (consensus 54.5) vs 54.5 in September; prices paid index 75.2 in October vs 77.9 (consensus 77.5) in September; new orders index 55.5 in October vs 55.3 in September and employment index 52.4 in October (consensus 52.0) vs 52.7 in September
• September construction spending -1.9% (consensus +0.3%); US Sept construction spending -1.9% (consensus +0.3%) to $2.186 trln, vs Aug +2.0% (prev +0.9%); US Sept private construction spending -2.4%, public spending -0.1%.

• Gold prices rose $70.70 or 1.81% to settle at $3,969.60 an ounce, rebounding from a one-year low hit in the previous session, supported by a retreat in oil prices that tempered inflation worries, while investors awaited US midterm elections tomorrow. Silver prices rose $1.61 or 3.27% to settle at $50.89 an ounce. Oil prices fell more than 6% on Monday after Iran and Qatar held a third consecutive day of talks aimed at ending the US-Israeli war on Iran. Traders see a 77% chance of a US rate hike in December, down from 80% a week ago, according to CME Group’s FedWatch Tool.

• The U.S. dollar eased as oil prices plunged and Treasury yields retreated ahead of a week full of catalysts, including the US midterm elections, a host of data on the US labor market and multiple central bank rate decisions. The dollar index (DXY) fell 0.22% to 101.76 after declining to 101.42, its lowest since September 30.

• Retail sector: NXH shares bounced after tZERO proposed business combination advances opportunity to scale regulated digital-asset infrastructure; NXH signs support agreement.
• Building Product sector: FND was downgraded to Sell from Neutral at Goldman Sachs and cuts PT to $38, as persistent housing pressure, slowing comps, and higher supply-chain costs limit the near-term earnings outlook. While the upcoming Pro loyalty program and longer-term store opportunity remain positives, expects housing turnover to stay pressured in FY27.
• Homebuilder stocks DHI, KBH, LEN, MTH, PHM, TOL advanced along with related mortgage names as Treasury yields extend recent pullbacks.

• Auto sector: RIVN was upgraded to Buy from Neutral at UBS with $17 tgt as sees the recent selloff (-19% over the past month vs S&P500 -1%) as a buying opportunity ahead of an inflection in R2 ramp and gross margins; EVGO shares jumped after SEC filing shows the company to be acquired by private co LS Power Equity Advisors for $2 per share.
• Chinese Ev sector: monthly delivery data out as LI delivered 29,025 vehicles in October 2026, representing a 43.6% Y/Y decline from 51,443 units in October 2025 and an 8.8% M/M drop from 31,817 units in September 2026; NIO delivered 34,246 electric vehicles in October 2026, representing an 8.4% M/M decline from September’s 37,408 units and fell 15.2% Y/Y, while bringing its cumulative deliveries to 1,332,139 as of October 31. XPEV achieved a new monthly record with total deliveries of 50,237 electric vehicles in October 2026, representing a 22% M/M increase from September and a 20% Y/Y increase. Monthly performance was further bolstered by overseas deliveries, which reached an all-time monthly high of 13,326 units, up 166% Y/Y.

• Space sector: SPCX is reportedly in talks with ECHO over a potential acquisition of Boost Mobile or a deal to use its wireless network, as Elon Musk looks to launch a full-fledged U.S. cellphone service, the Washington Post reported. Musk previously approached Verizon (VZ), AT&T (T) and T-Mobile (TMUS) seeking access to their networks, but all three rejected the proposal.
• Material sector: ln lithium space (ALB, SQM, LIT), Citigroup said lithium prices to remain depressed in the near term after spot Lithium prices have fallen 40% since Sep’26, raising the key question of whether correction has run its course. While Citi sees declining salt inventories in China to provide near term support, price upside is likely to be capped. Citi sees little catalyst for a meaningful recovery in downstream activity at current prices.

• Consumer finance/payments sector: a big week ahead of the space with earnings expected from FISV, BR, TOST, FLYW, XYZ, FIS, JKHY, WU, CPAY, GPN, LSPD, FOUR, VYX, and AFRM all this week; shares of MA and Visa (V) both made new all-time highs today; AXP shares jumped topping its 200dma of $225.95 this morning in strong consumer finance space (COF as well).

• AXSM shares tumbled following Q3 earnings results.
• INO shares surged after the FDA approved its treatment INO-3107 (branded Voceryq) for a rare respiratory condition, marking the company’s first approved product. Inovio expects Voceryq to be available for order and shipment within about 60 days, and commercial launch planned 1Q’27.
• QURE said announced FDA acceptance and priority review for its BLA for ifezuntirgene inilparvovec in Huntington’s Disease, with a 5/1/2027 PDUFA. The FDA is tentatively planning to hold an AdCom for the application.
• TEVA said it was discontinuing its mid-stage neurodegenerative disorder study due to a low probability of the study meeting its main goal if continued. The company was testing its experimental oral drug, emrusolmin, in adults with multiple system atrophy.
• Animal product sector: IDXX shares rose after Q3 top and bottom line beat, mgmt raising FY organic growth to 9.3%-10.0% vs prior guidance 8.5%-9.7%. Q3 EPS $4.01 vs $3.73 est. Q3 revs $1.21B vs $1.19B est. FY EPS guide $14.96-15.16 vs prior guidance $14.69-14.94.
• Precision medicine sector: TEM Q3 revs and adjusted EBITDA slightly above expectations, reaffirms FY adjusted EBITDA guide. Q3 revenue $411.5M vs $409M est. Q3 adj EBITDA $25.6M vs $18.6M est. FY26 rev guide $1.60-1.605B vs prior guidance $1.595-1.605B. Reaffirms adjusted EBITDA.
• Telehealth sector: TDOC was downgraded to Sell and then coverage dropped at Argus as the firm said Teladoc is struggling with challenges in a telemedicine industry that have many companies seeking to provide virtual health services/they forecast operating losses through 2027.

• Data Center sector: CIFR shares fell early after Q3 revenue fell y/y as bitcoin mining revenue declined though recognized first HPC lease revenue, marking shift in business strategy; Net profit posted for Q3, driven by non-operating gains; adjusted EBITDA was negative; said expects additional capacity at Black Pearl and other campuses to come online by year-end.

• Quantum sector: B Riley lowered prices tgts on IONQ to $75 from $100, QBTS to $27 from $40, RGTI to $25 from $35 and INFQ to $17 from $23 in earnings preview saying ecosystem progress continued, yet shares fell on sector and Ai weakness. IONQ with the first partial SkyWater quarter should show manufacturing, demand, validation, and funding progress, with consensus Q4; QBTS reports in a CFO transition quarter with gate-model and annealing progress in focus and RGTI looks like a trough Q3 ahead of its C-DAC system revenue recognition in Q4.
• Security Software sector: OKTA shares rose after being added to the S&P 500 index this week, replacing KVUE which is being acquired by KMB in a deal expected to be completed soon. CHKP shares slipped after Q3 revs fell -1.1% y/y to $669.8M vs. est. $672M, while security subscriptions revenue rose 11% to $339M. Remaining performance obligations increased 5% to $2.5B. CRWD was upgraded to buy from Hold at Deutsche bank and raised tgt to $300 from $240 as believe investors are still not fully appreciating the extent to which Ai will expand the market for cybersecurity and CrowdStrike’s leadership at the forefront.

• TSEM reported better-than-expected Q3 earnings and revenue and forecast fourth-quarter sales above analysts’ estimates, citing strong demand for high-speed connectivity products; expects Q4 revenue of $600M, plus or minus 5%, vs. estimates of about $580M as midpoint of the forecast represents growth of 36% y/y and 14% from the prior quarter.