Market overview

US Market Overview — November 3, 2026

Today's tape reflects a cautious, event-driven recovery after a sharp tech-led selloff. The session followed Monday's selloff, which pushed the Nasdaq 100 into correction territory, down 10.4% from its October record. That stress shows up in the elevated volatility backdrop: the Cboe Volatility Index (VIX) closed at 20.51 on Tuesday, November 3, 2026, down 0.64 points, or 3.03%, from the previous close of 21.15, remaining above the 20 level — consistent with the regime read of broadening participation (RSP) alongside tech (QQQ) lagging in your data. Options markets had been pricing extra risk premium specifically around this week's calendar: the VIX rose to 21.15 and nine-day vol jumped to 22.46, above spot, with the premium sitting across the election count, Wednesday's Treasury refunding and Friday's payrolls, not in today's session itself.

The dominant macro drivers were the US midterm elections and lingering AI-valuation anxiety. Stocks finished mostly higher as the tech-heavy Nasdaq recouped some of its prior-day losses, while the Dow Jones Industrial Average was dragged lower by Apple shares after an earnings beat that came with a cautious cost warning, and Apple shares dropped in premarket trading after the company reported record quarterly revenue but warned that rising memory-chip costs could pressure holiday-quarter profitability — matching the DIA weakness in your levels despite broad index gains elsewhere. On rates/data, Tuesday's calendar included JOLTS Job Openings and Factory Orders, with the 10-year yield around 4.89%, a modestly elevated-yield backdrop rather than a dovish catalyst. Oil also eased: oil was slightly lower on rumors of progress toward a US-Iran deal, and high oil prices had been adding to gasoline prices and inflation, which helped cool inflation-fear sentiment coming off Monday.

The standout mega-cap/sector story was semiconductors reversing Monday's rout. Chip stocks helped the Nasdaq end the regular session higher on Election Day, while Apple kept the Dow lower; after the close, AMD and Arista Networks reported sales above their own forecasts, sending shares jumping in after-hours trading. AMD itself posted a strong beat-and-raise quarter: AMD earned $2.09 a share on an adjusted basis, above the $1.95 analysts expected, with revenue rising 45% to a record $13.4 billion, beating estimates and the top of its own guidance range. That data-center-led chip rebound aligns with QQQ's positive session move in your levels even as its 1-month relative performance remains deeply negative versus SPY — i.e., today was a bounce within an otherwise tech-lagging month. Meanwhile the pickup in XBI (+1.92% session, best relative-strength reading in your data) fits a broader rotation into speculative/risk assets alongside small- and equal-weight strength (RSP), even as headline volatility stayed modestly elevated into the election and Fed-adjacent calendar this week.