Nasdaq 100 chip stocks rebound after US midterm sell‑off
ITF Team2 min read
Nasdaq 100 bounced from the 26,200 support on Nov 6, 2026 as semiconductor shares recovered, but AI spending worries and higher‑rate expectations keep the index under pressure.
Key takeaways
- The Nasdaq 100 closed the week of Nov 6, 2026 down 4.92% after rebounding from the 26,200 support level.
- US October jobs added 165,000, unemployment fell to 4.1% and average hourly earnings rose 0.4% from September.
- Fed rate‑hike odds for December rose to 78% following the jobs report.
- ISM Manufacturing PMI reached 55.5 while Prices Paid Index stayed at 75.2, indicating strong producer‑price pressure.
On Nov 6, 2026 the Nasdaq 100 climbed back from a key support zone around 26,200 as semiconductor‑heavy chip stocks found buying interest after a sharp sell‑off linked to the US midterm elections. The rebound was limited; the index still finished the week 4.92% lower, reflecting lingering concerns over AI‑related capital spending, a tighter monetary outlook and renewed US‑China trade friction.
Why chip stocks led the bounce
The lift came mainly from the Philadelphia Semiconductor Index, which showed a modest recovery after the broader technology sector had been hammered by political rhetoric promising tighter regulation of AI data‑center expansion. Democrats’ sweep of the House and Senate raised fears that stricter rules could curb electricity and water demand, depressing demand for high‑performance chips.
Nevertheless, the ISM Manufacturing PMI rose to 55.5, signalling expanding demand from AI‑driven production lines. The accompanying Prices Paid Index at 75.2 suggests that manufacturers are already facing higher input costs, a factor that could be passed on to end‑users and affect profit margins for chipmakers.
Monetary backdrop and rate‑hike expectations
US labour data added a further layer of complexity. Employers added 165,000 jobs in October, unemployment slipped to 4.1% and average hourly earnings rose 0.4% from September. These numbers pushed the probability of a Fed rate increase in December to 78%.
Higher rates increase the discount rate used to value future earnings, which hurts growth‑oriented sectors such as technology. The Nasdaq 100’s 50‑week simple moving average sits just above the current price, and the RSI remains near 39.5, indicating that momentum is still bearish despite the short‑term bounce.
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Technical landscape and key levels
The weekly chart shows a fake breakout above 30,600 in October, followed by a rapid fall back to the 26,200 support that has held since June 2025. A break below this level could open a path toward the 23,000‑24,000 zone, defined by an inverted‑head‑shoulders neckline formed between December 2024 and June 2025.
On the upside, a sustained move above the 29,600 resistance (the 50‑day SMA) would suggest a bottom has been confirmed and could trigger a rally toward the 35,000 area. Meanwhile, the broader 200‑day SMA near 28,000 remains a crucial barrier for any longer‑term recovery.
Geopolitical and trade pressures
US‑China tensions resurfaced this week as the Trump administration urged Beijing to meet commitments on rare‑earth deliveries and U.S. farm‑goods purchases. Any escalation could raise input‑costs for semiconductor manufacturers that rely on Chinese‑sourced materials, further weighing on the Nasdaq’s tech component.
At the same time, discussions about reversing US tariffs on Canada gained traction, with Canadian officials welcoming the Democrats’ push. A de‑escalation in trade disputes could provide a modest boost to technology supply chains, but the market remains sensitive to any renewed retaliation.
- Key support: 26,200 (weekly)
- Secondary support: 24,000
- Resistance: 29,600 (50‑day SMA)
- Next watch: Fed December rate decision, US jobs data, US‑China trade talks
Frequently asked questions
What triggered the Nasdaq 100’s rebound on Nov 6, 2026?
The rebound was sparked by buying in semiconductor stocks after the index hit the 26,200 support level. The move came amid concerns that the US midterm election outcomes could tighten AI data‑center regulations, which initially drove tech stocks lower.
How do the latest US jobs figures affect the Nasdaq 100?
October’s jobs report showed 165,000 new jobs, a unemployment rate of 4.1% and a 0.4% rise in average hourly earnings. These strong numbers lifted the probability of a Fed rate hike in December to 78%, increasing pressure on growth‑heavy tech stocks.
What technical level must the Nasdaq 100 break to confirm a bottom?
Traders look for a clear close above the 29,600 resistance, which aligns with the 50‑day simple moving average. A sustained break would suggest the bottom at 26,200 is confirmed and could open the path toward the 35,000 region.
Official data sources
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This article is compiled from international market news for information only. It is not investment advice.