Weekly Market Review | United States & Canada | AlainGuillot.com

What began as a celebration on Wall Street ended as one of the most difficult weeks for technology investors in months.

The U.S. midterm elections delivered a sweeping Democratic victory, initially triggering a spectacular stock-market rally. On Wednesday, the Dow Jones Industrial Average surged more than 1,500 points as investors welcomed the prospect of divided government.

But the optimism quickly disappeared.

By Thursday, concerns about restrictions on artificial intelligence data centers had sparked a massive technology selloff. The Nasdaq plunged into correction territory, semiconductor stocks collapsed, and trillions of dollars in market capitalization evaporated.

Friday brought some relief, but not enough to rescue the week.

The Nasdaq finished down 3.4%, the S&P 500 lost 2.7%, and the Dow declined 0.9%.

Canada, meanwhile, proved more resilient. The S&P/TSX Composite finished Friday higher, supported by a different sector mix and investor attention to Canada’s new federal budget.

Oil prices also experienced a dramatic decline, with Brent crude falling more than 13% during the week as investors reconsidered the outlook for the war involving Iran.

The week’s biggest lesson: Political changes can reshape market expectations overnight, but the impact varies enormously between companies, industries, and countries.

1. Weekly Stock Market Performance: United States vs. Canada

The divergence between U.S. and Canadian markets was significant.

American technology stocks suffered as investors reconsidered the future pace of AI infrastructure investment.

Canada’s stock market, with its greater exposure to financial services, energy, mining, and other traditional industries, was less directly affected by the semiconductor collapse.

This illustrates the value of geographic and sector diversification.

Investors concentrated in U.S. technology companies experienced a very different week from those holding a broader mix of Canadian equities.

2. The Midterm Elections: From Wall Street Euphoria to Panic

The week’s defining event was the Democratic Party’s sweeping victory in the U.S. midterm elections.

The results gave Democrats control of Congress and raised expectations of divided government.

Initially, investors reacted enthusiastically.

On Wednesday, the Dow surged more than 1,500 points, its largest one-day gain in more than a year.

Many investors hoped that a divided government would limit some of President Donald Trump’s more controversial economic policies, including tariffs and decisions involving the war with Iran.

However, by Thursday, the market had begun evaluating the consequences more carefully.

Investors realized that the election results could also introduce significant challenges for companies benefiting from the AI investment boom.

The result was a violent reversal.

The Nasdaq plunged into correction territory, and an estimated $2.5 trillion in market value was erased in a single session.

The episode demonstrated how removing one source of uncertainty can reveal another.

Markets initially celebrated the political outcome, then began pricing in its economic consequences.

3. The AI Boom Faces a Political Backlash

One of the most important messages from the midterm elections was growing public opposition to the rapid expansion of AI data centers.

Across the United States, voters supported candidates and ballot measures seeking to restrict new construction.

In Texas, the incoming Democratic governor has proposed pausing new data center projects until lawmakers establish additional regulations.

In Ohio, more than a dozen communities voted to restrict or prohibit new facilities.

The concerns are understandable.

Modern AI data centers require enormous quantities of electricity, water, land, and supporting infrastructure.

Communities worry that rapid expansion could increase electricity bills and place pressure on local resources.

Why this matters for investors

The AI industry has been one of the largest drivers of U.S. stock-market performance.

Technology companies have committed billions of dollars to constructing new facilities and purchasing computing equipment.

If governments delay or restrict new projects, that spending could slow.

This would affect companies supplying processors, memory, networking equipment, electricity, and construction services.

Importantly, the impact would not be uniform.

Companies with existing data centers could benefit from increased scarcity, while businesses dependent on continuous expansion could face greater challenges.

The market is beginning to distinguish between those business models.

4. Semiconductor Stocks Suffer a Historic Collapse

Rounded weekly changes from the supplied report; the semiconductor index fell more than 12%.

Semiconductor companies were among the biggest casualties of the week’s market turmoil.

The Philadelphia Semiconductor Index lost more than 12%, with nearly all the damage occurring Thursday.

That session ranked as the index’s second-worst day on record, according to the supplied market report.

Among the major companies:

• Nvidia declined nearly 9%.
• AMD lost approximately 11%.
• Micron plunged approximately 22%.

The declines reflected concerns that new data center restrictions could reduce future demand for chips and memory.

However, the magnitude of the selling also suggests that investors were reconsidering valuations.

When expectations become extremely optimistic, even a modest change in projected growth can trigger a substantial stock-price decline.

The important distinction is between the growth of artificial intelligence as a technology and the investment returns earned by shareholders.

AI may continue transforming the global economy while individual companies experience significant losses.

5. Anthropic’s $1.5 Trillion IPO Valuation Comes Under Scrutiny

The change in investor sentiment has also reached the private AI market.

According to the Wall Street Journal reporting described in the supplied material, some major backers of Anthropic’s planned initial public offering are questioning a proposed valuation of $1.5 trillion.

Some investors reportedly believe the valuation may need to fall by hundreds of billions of dollars.

This is an important development.

Private AI companies have attracted enormous amounts of capital based on expectations of rapid growth and future profitability.

But investors are increasingly asking whether those expectations justify the prices being discussed.

Why valuation matters

A company can develop extraordinary technology and still be a poor investment if the purchase price is too high.

For example, a business valued at $1.5 trillion would need to generate enormous future profits to justify that valuation.

The more optimistic the assumptions, the greater the risk if growth slows or expenses rise.

The reported concerns about Anthropic’s valuation suggest that investors are becoming more selective.

Rather than rewarding AI exposure alone, they are demanding stronger evidence of sustainable revenue, profitability, and competitive advantages.

6. Elon Musk’s Companies Face Political and Business Challenges

The midterm election results created additional uncertainty for businesses associated with Elon Musk.

Tesla shares declined 10.4% during the week, while the supplied report says SpaceX shares slipped approximately 0.3%.

Democratic lawmakers have indicated they may investigate Musk’s involvement in the Trump administration and questions surrounding the use of SpaceX satellite services during the war in Ukraine.

Musk was also a major financial supporter of Republican candidates.

According to the supplied report, he spent more than $440 million supporting Republican campaigns, including more than $150 million on a Texas Senate race in which his preferred candidate lost.

Tesla’s Cybertruck struggles

Political concerns were not Tesla’s only problem.

The company reportedly announced plans to wind down Cybertruck production next year.

The stainless-steel pickup truck attracted considerable attention when it was introduced, but sales have struggled to meet expectations.

According to the Motor Intelligence figures cited in the supplied material, fewer than 2,000 Cybertrucks were registered in the United States during October.

The development raises questions about the commercial viability of a vehicle that required years of engineering and substantial investment.

Tesla also faces the possibility that a proposed combination with SpaceX could encounter greater regulatory scrutiny.

For investors, these developments highlight the risks of companies whose fortunes are closely associated with a single influential executive.

7. Homebuilder Stocks Rally on Hopes of Lower Mortgage Rates

Not every industry suffered following the elections.

American homebuilder stocks rallied sharply Wednesday as investors anticipated possible improvements in housing affordability.

U.S. Homebuilders: Post-Election Rally

The housing industry has struggled with high mortgage rates, weak demand, and rising construction costs.

Investors see several potential sources of relief.

Lower oil prices could reduce inflationary pressure and borrowing costs.

Restrictions on AI data center construction might also reduce competition for electricity and construction resources.

Changes in immigration policy could potentially ease labor shortages in the construction industry.

However, analysts remain cautious about the immediate outlook.

Housing demand remains weak, costs are elevated, and the industry is entering its traditionally slower season.

Wednesday’s rally therefore reflected optimism about future conditions rather than evidence that the housing market has already recovered.

8. Oil Prices Collapse as Investors Reassess the Iran War

Brent crude oil · Weekly change

More than −13%

Week ending November 6, 2026

End-of-week price

Below US$99

Oil prices experienced another dramatic week.

Brent crude futures declined more than 13%, finishing below $99 per barrel.

The selloff reflected hopes that the Democratic victory in Congress would increase pressure on the Trump administration to pursue an end to the conflict with Iran.

A potential reduction in geopolitical tensions could lower the risk premium built into crude oil prices.

Why this matters for Canada

Canada is a major oil-producing country.

Lower oil prices can benefit consumers and businesses through reduced fuel and transportation expenses.

However, they can also reduce revenue and profitability for Canadian energy producers.

This creates a mixed effect on the Canadian economy and the S&P/TSX Composite.

Energy companies may struggle when crude prices fall, while businesses that consume large quantities of fuel could benefit.

The longer-term consequences depend on whether lower prices persist and whether the geopolitical situation improves.

9. Canada’s Stock Market Shows Resilience

While U.S. technology stocks suffered substantial losses, Canada’s S&P/TSX Composite demonstrated greater resilience.

On Friday, the index gained 183.82 points, closing at 35,789.09.

Canadian markets also experienced significant volatility throughout the week, particularly following the U.S. midterm elections and Thursday’s AI selloff.

But Canada’s market composition helped produce a different outcome.

Why Canadian stocks performed differently

The S&P/TSX has a much smaller concentration of major AI technology companies than the Nasdaq.

Canadian equities have greater exposure to banks, energy companies, mining businesses, utilities, and other established industries.

As a result, a selloff concentrated in AI infrastructure can affect Canadian indexes less severely.

This does not make Canada immune to U.S. economic developments.

The two economies are closely connected through trade, investment, energy markets, and financial conditions.

However, their stock markets can perform differently because their sector compositions are different.

For Canadian investors, this is another reminder that diversification across industries and countries can reduce dependence on a single market trend.

10. Canada’s 2026 Federal Budget Focuses on Business Investment

Canadian investors also spent the week evaluating the federal government’s 2026 budget, tabled Thursday.

The budget emphasized business investment, productivity, and international competitiveness.

Its central economic objective was to encourage companies to invest more, expand their operations, and become more competitive globally.

The government introduced a series of tax measures and incentives intended to stimulate private-sector investment.

Why the budget matters

Canada has faced persistent concerns about weak productivity growth and business investment.

Encouraging companies to purchase equipment, expand production, and develop new technologies could help improve long-term economic performance.

Sadiq Adatia, chief investment officer at BMO Global Asset Management, expressed a generally favorable view of the budget in the supplied report.

He suggested that additional government spending could help support the economy amid global uncertainty and a relatively weak employment outlook.

However, the effectiveness of the budget will depend on whether businesses respond by increasing productive investment.

Government incentives can encourage spending, but they do not guarantee stronger economic growth.

11. Canadian Dollar Weakens Against the U.S. Dollar

Canadian Dollar

Friday, November 6, 2026 · Value in U.S. cents

Thursday

71.48¢

Friday

70.86¢

Daily change

−0.62 US¢

The Canadian dollar weakened on Friday, trading at 70.86 U.S. cents compared with 71.48 cents the previous day.

Currency movements matter for Canadian investors who hold U.S. stocks.

When the Canadian dollar weakens, U.S.-dollar-denominated investments become more valuable when translated into Canadian dollars, assuming their U.S. market prices remain unchanged.

Conversely, a stronger Canadian dollar can reduce the Canadian-dollar value of U.S. investments.

This currency effect can partially offset or amplify stock-market gains and losses.

For Canadian investors with significant U.S. exposure, exchange rates are an important part of overall portfolio performance.

12. Gold, Oil, and Other Canadian Market Indicators

Indicator	Friday’s reported value
S&P/TSX Composite	35,789.09 (+183.82 points)
Canadian dollar	US$0.7086
December WTI crude oil	US$90.83/barrel
December gold futures	US$4,074.90/oz

December crude oil futures gained US$0.31 on Friday, while December gold futures declined US$38.60.

These movements reflect the different forces affecting commodities.

Oil prices were influenced heavily by geopolitical expectations and the war involving Iran.

Gold prices were affected by broader financial-market conditions, investor risk preferences, and expectations about interest rates.

For Canada, commodity prices remain especially important because natural resources account for a meaningful share of exports and corporate earnings.

13. What Investors Should Watch Next Week

After such a turbulent week, several issues deserve close attention.

• AI data center regulations: Will newly elected U.S. officials move ahead with restrictions on construction?
• Semiconductor earnings and valuations: Can Nvidia, AMD, and Micron stabilize after their steep weekly declines?
• Anthropic’s reported IPO valuation: Will investors demand lower prices for private AI companies?
• Federal Reserve policy: How will the stronger U.S. jobs report influence interest-rate expectations?
• Oil and Iran: Will diplomatic developments support lower crude prices, or will tensions escalate again?
• Canadian federal budget: Will the proposed business incentives encourage greater private investment?
• Canadian dollar: Will currency volatility continue affecting returns on U.S. investments?
• Housing market: Can homebuilder stocks sustain their rally if mortgage rates remain elevated?

The market’s next direction will depend on whether investors regain confidence in corporate earnings and future growth expectations.

14. The Biggest Investment Lesson of the Week

This week illustrated the difference between investing in a promising industry and investing at an attractive price.

Artificial intelligence remains one of the most important technological developments of our time.

But enthusiasm for a technology does not eliminate financial risk.

Companies can invest billions of dollars in infrastructure without necessarily generating sufficient profits to justify their valuations.

Political developments can also change the economics of an industry.

Restrictions on data center construction could affect demand for chips, electricity, construction materials, and financing.

At the same time, those restrictions could make existing infrastructure more valuable.

The week’s events also highlighted the importance of diversification.

U.S. technology stocks experienced severe losses, while Canadian equities held up better.

Investors who concentrated heavily in a single industry faced greater volatility than those holding a more diversified portfolio.

The goal of long-term investing should not be to own whichever industry is attracting the most attention. It should be to own financially sound businesses at reasonable prices while managing the risks that could threaten your capital.

Conclusion: A Week That Changed the AI Investment Narrative

The week of November 2–6, 2026, may be remembered as a turning point in investors’ attitudes toward artificial intelligence.

The Democratic victory in the U.S. midterm elections initially triggered a powerful rally.

But fears of restrictions on data center construction quickly transformed optimism into a major technology selloff.

The Nasdaq lost 3.4% for the week, while the S&P 500 declined 2.7%.

Semiconductor companies suffered particularly severe losses, with Micron plunging approximately 22%.

Oil prices fell sharply, Tesla faced political and commercial challenges, and homebuilder stocks rallied on hopes of improved affordability.

In Canada, the S&P/TSX demonstrated greater resilience as investors evaluated the federal budget, corporate earnings, and commodity prices.

For investors on both sides of the border, the lesson is the same:

Technology can change the world, but financial discipline, diversification, and reasonable valuations remain essential to building long-term wealth.

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