# U.S. Futures Signal Tech Market Selloff May Be Overdone Nasdaq futures rebound as investors reassess the massive three trillion dollar market cap loss. - **Source:** [Fortune | FORTUNE](https://brifing.si/source/769282ef-327a-4454-909a-3c7936216004) - **Published:** 2026-11-06 - **Topic:** [Finance](https://brifing.si/c/finance) - **Original article:** - **On Brifing:** https://brifing.si/s/653b2ae6-dc46-4a82-baa5-97dd962b0bc5 ## Market Rebound Signals Nasdaq futures rose 1.18 percent and S&P 500 futures climbed 0.24 percent this morning. This indicates that the massive selloff occurring over the last 24 hours may be overdone. Traders are showing signs of stabilization after the Nasdaq 100 index fell 6.36 percent yesterday, officially entering correction territory following significant volatility. ## Massive Capital Losses The recent market downturn resulted in a loss of more than $3 trillion in total market capitalization. The Magnificent 7 tech stocks alone accounted for $1 trillion of this decline. Additionally, twenty-two Asian billionaires saw their combined net worth drop by $18 billion, reflecting the global scale of this sudden financial retreat. ## Election Impact Triggers The sharp decline was primarily triggered by U.S. midterm election results, which saw Democrats gain control of Congress. Investors fear that new leadership will curb the rapid expansion of AI data centers. These facilities have faced public backlash due to concerns regarding their high consumption of local power and water resources. ## Elon Musk's Wealth Drop Tesla and SpaceX CEO Elon Musk experienced a $113 billion reduction in his net worth during the selloff. Tesla shares fell 10.77 percent, while SpaceX saw a 9 percent decline. Musk responded by reposting a video citing Warren Buffett, comparing stock market price fluctuations to an irrational neighbor yelling at one's house. ## Tech Bull's Rare Doubt Wall Street analyst Dan Ives expressed rare skepticism regarding the tech sector's immediate future. Ives now believes Big Tech capital expenditure growth will peak in 2027 rather than 2028 or 2029. He estimates that 10 percent of planned data centers may be canceled, with 20 percent facing significant regulatory delays in states like Texas. ## Buying Opportunity Outlook Despite his revised growth projections, Dan Ives maintains a positive long-term outlook for the sector. He characterizes the current selloff as a golden buying opportunity, comparing it to the market conditions seen in March 2020 and April 2025. Ives encourages investors to hold onto tech winners despite the current political and regulatory headwinds. ## Broader Market Resilience While tech stocks suffered, other sectors showed resilience during the recent rotation trade. According to Deutsche Bank, consumer staples rose 13.96 percent and healthcare gained 11.24 percent over the last month. More than two-thirds of S&P index members have moved higher, though the heavy weighting of tech stocks dragged down the broader index. ## Institutional Political Analysis Analysts at Macquarie suggest the U.S. Supreme Court has contributed to political instability by restructuring institutions toward an elected monarchy. They argue this environment weakens democratic pillars like the independent judiciary and bureaucracy. The firm suggests that potential Republican internal conflict could eventually force a bipartisan coalition to address these systemic institutional issues. ## Labor Market Indicators Despite market volatility, labor demand remains steady in the broader economy. Small and mid-sized businesses have increased spending on hiring firms, according to Bank of America. These companies represent approximately 30 percent of total payrolls, suggesting that labor demand will likely continue through the remainder of the year despite the tech sector's struggles. ## Energy Sector Outlook The global energy landscape faces long-term structural changes as demand for oil is expected to peak in 2032 at 108 million barrels per day. Wood Mackenzie analysts warn that 20 percent of the world's oil refineries face a high risk of closure once this peak is reached and the industry enters a period of decline. ## Future Market Trajectory The market is currently balancing between political regulatory fears and the underlying strength of the broader economy. While AI infrastructure expansion faces a slower regulatory path, the resilience of non-tech sectors provides a buffer. Investors are now closely monitoring whether the current rebound will sustain or if further volatility follows the midterm election shifts. ## Sources covering this story - https://fortune.com/2026/11/06/stocks-futures-carnage-tech-markets-sp-500-nasdaq-elon-musk/ — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._