Market snapshot: between a rock and a hard place

Thursday’s punishing declines tempted investors to buy on the dip as the week ended on a more positive note.

The S&P500 rose by 0.3% on Friday but finished down by 2.7% for the week, marking its worst decline since “Liberation Day” April 2025 when a sweep of tariffs were announced by the US President. The Nasdaq edged higher by 1.1% although that was far from sufficient to reverse the 5.5% loss of the previous day. Among the stocks buoyed by bargain hunters were AI bellwether NVIDIA Corp (NASDAQ:NVDA), which added 3% and Micron Technology Inc (NASDAQ:MU) which rose by 5% after its 17% decline on Thursday.

• Our Services: SIPP Account | Stocks & Shares ISA | See all Investment Accounts

As such, markets are set for another jittery week, with Dow futures providing few clues at this stage except that the Nasdaq could face further pressure at the open today. CoreWeave Inc Ordinary Shares - Class A (NASDAQ:CRWV) will report earnings this week amid the slump which has seen its shares decline by 33% in the year so far and will be closely monitored as a test of investor caution. That so relatively few tech and semiconductor stocks have such an overbearing impact on the indices remains a concern in terms of concentration risk.

• 20 most-bought tech stocks: week ended 6 November 2026
• Where four experts are investing towards end of 2026

News that Nvidia chief Jensen Huang is being investigated following an affair with an alleged Chinese spy comes at a bad time for the chip giant. Current indications are that shares will fall when Wall Street opens.

In addition, last week’s Democrat sweep could result in a slowdown in the data centre buildout and, in any event, there is an increasing acceptance that while tech firms have continued to push new boundaries in the AI build, they have failed sufficiently to communicate the benefits of these advances to the general public.

• Share Sleuth: two firms, one decision, and a surprise
• AIM in 2026: exciting new stocks and what’s still to come

Elsewhere, the economic conundrum continues to develop, with the non-farm payrolls report revealing that 165,000 jobs were added in October, well ahead of the 59,000 estimated, while the unemployment rate also declined marginally to stand at 4.1%, below expectations that it would remain unchanged. Such strength could well be enough for the Fed to switch its attention away from the labour market and focus entirely on the inflation picture as part of its dual mandate.

This week’s Consumer Price Index is expected to show a month-on-month increase of 0.2%, lower than the previous month’s increase of 0.6% at the headline level, with the odds of a December rate hike remaining at 80% as investors deem that the economy is strong enough to withstand a further rise in interest rates.

• Stockwatch: can this housebuilder overcome sector challenges?
• Three ways interest rate hike to 4% could affect your finances

Also feeding into the inflationary picture is the oil price, which currently stands at around $97 per barrel, 35% higher than the start of the Iran conflict and 59% higher in the year so far, although lower than its recent peaks. The price fell a touch further overnight after the US President said at the weekend that he was highly unlikely to resume fresh attacks on Iran as had been feared, albeit subject to the agreement of some strict terms.

The current volatility has left the main indices bruised, but still standing relatively strong. In the year to date, the Dow Jones has added 6.7%, with the Nasdaq having trimmed its gains to 5.8% and the benchmark remaining 7.8% ahead, reflecting some underlying resilience. It remains to be seen whether the recent AI shakeout has been a structural reset of valuations, or whether it is simply a pause for breath as investors search for a new catalyst amid this new industrial and technological revolution.

• The Income Investor: the dividend outlook for BP
• Sign up to our free newsletter for investment ideas, latest news and award-winning analysis

In the UK, the FTSE100 finds itself between a rock and a hard place. Having succumbed to a 1% decline at the end of last week as global investor optimism evaporated, it was then excluded from the bounce back given its relative lack of exposure to tech, which has been both a blessing and a curse over the last several months. The index remains ahead by 7.6% in the year so far but has moved further away from the record closing high set in February which it came extremely close to breaching early last week, now standing 2% below that level.

The index was largely flat at the open despite some support offered by the mining sector, where gains in the gold and copper prices lifted the likes of Endeavour Mining (LSE:EDV), Fresnillo (LSE:FRES) and Antofagasta (LSE:ANTO), while Autotrader Group (LSE:AUTO) and Babcock International Group (LSE:BAB) edged higher following broker upgrades. However, the latest move downwards in Nasdaq futures took Polar Capital Technology Ord (LSE:PCT) and Scottish Mortgage Ord (LSE:SMT) lower, with the index more generally failing to provide any temptation for bargain-hunting investors who are currently focused elsewhere.