Content and data provided by various third parties and Fidelity − Terms of Use | Help/Glossary
Research > ETFs > ETF / ETP Commentary > 

Midterm Vote Sparks Tech Sell-Off as Jobs Data Stays Strong

BY | ETF Database
10:32 am ET 11/10/26 | 3 VIEWS
U.S. stocks fell last week after the November 3 midterm elections. A Wednesday rally gave way to a sharp tech-led sell-off on Thursday, November 5.Key Takeaways: Chip stocks had their worst session since March 2020 last week as worries about AI rules and spending hit tech shares. TCAF picks roughly 100 large companies one by one, but big tech names still hold its top spots. Japan’s Nikkei slid into a bear market last week while Europe’s main index finished slightly higher. The Nasdaq 100 fell 6.4% that day, while the Philadelphia Semiconductor Index plunged more than 12%, according to T. Rowe Price’s weekly market update. Both posted their worst sessions since March 2020. Democrats won both chambers of Congress, and investors grew concerned about tighter AI oversight, the firm said. Weak chipmaker outlooks and doubts about returns on AI infrastructure spending added to the pressure. See more: Healthcare Stocks Face Policy Split After Midterm Broader economic data sent a steadier signal during the sell-off. The U.S. added 165,000 jobs in October, well above expectations, the Bureau of Labor Statistics reported on November 6. Consumer staples and healthcare held up relatively well, T. Rowe Price noted. Apple Inc. (AAPL), the S&P 500’s largest company by market value, also reported record fiscal fourth-quarter revenue. Because S&P 500 index funds weight stocks by market value, Apple and other tech giants fill their largest slots. The T. Rowe Price Capital Appreciation Equity ETF (TCAF B+) instead picks and sizes positions through company research, according to T. Rowe Price. It holds roughly 100 mostly large U.S. companies, averaging about 1% per position. Big tech still leads the portfolio. Microsoft Corp. (MSFT) was the largest holding at 7.54% as of November 9, according to T. Rowe Price data. Amazon.com, Inc. (AMZN), Nvidia Corp. (NVDA), and Apple each topped 5%. Healthcare names also rank among the top 10. Cencora, Inc. (COR) and Ascendis Pharma (ASND) each made up about 2.4%, according to the firm. TCAF had $7.9 billion in net assets and a 0.31% expense ratio.Jobs Data Holds Steady Through Midterm VolatilityHiring in healthcare also helped drive October’s job gains, along with professional and business services, according to Bureau of Labor Statistics data. Meanwhile, the unemployment rate edged down to 4.1% from 4.2%. Payroll estimates for August and September were revised up by a combined 84,000 jobs, T. Rowe Price said. Initial jobless claims also fell to 189,000 for the week ended October 31, matching the lowest level since mid-July. Factory activity expanded for a 10th straight month. The ISM Manufacturing Purchasing Managers’ Index rose to 55.5 in October from 54.5, according to the report. Readings above 50 signal economic growth. For more news, information, and analysis, visit our Active ETF Content Hub.

More Commentary

VFLO Adds Micron: How a Free Cash Flow Screen Led to AI Memory
BY | ETF Database
9:59 am ET 11/10/26 | 7 VIEWS
Income ETFs: A Playbook for Market Volatility
BY | ETF Database
4:35 am ET 11/10/26 | 58 VIEWS
Growth Beyond Big Tech: The Hypergrowth Method & HYP
BY | ETF Database
5:22 am ET 11/10/26 | 33 VIEWS
View more Commentary

Search Commentary

Enter Keyword(s)
Filter Results

Performance data shown is past performance and is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. Yield and return will vary, therefore you have a gain or loss when you sell your shares. For standard quarterly performance, go to the fund's Snapshot page by clicking on the ETF/ETP's symbol.

ETFs may trade at a premium or discount to their NAV and are subject to the market fluctuations of their underlying investments.

For iShares ETFs, Fidelity receives compensation from the ETF sponsor and/or its affiliates in connection with an exclusive long-term marketing program that includes promotion of iShares ETFs and inclusion of iShares funds in certain FBS platforms and investment programs. Please note, this security will not be marginable for 30 days from the settlement date, at which time it will automatically become eligible for margin collateral. Additional information about the sources, amounts, and terms of compensation can be found in the ETF's prospectus and related documents. Fidelity may add or waive commissions on ETFs without prior notice. BlackRock and iShares are registered trademarks of BlackRock, Inc. and its affiliates.

FBS receives compensation from the fund's advisor or its affiliates in connection with a marketing program that includes the promotion of this security and other ETFs to customers ("Marketing Program"). The Marketing Program creates incentives for FBS to encourage the purchase of certain ETFs. Additional information about the sources, amounts, and terms of compensation is in the ETF's prospectus and related documents. Please note that this security will not be marginable for 30 days from the settlement date, at which time it will automatically become eligible for margin collateral.

News, commentary (including "Related Symbols") and events are from third-party sources unaffiliated with Fidelity. Fidelity does not endorse or adopt their content. Fidelity makes no guarantees that information supplied is accurate, complete, or timely, and does not provide any warranties regarding results obtained from their use.

Any data, charts and other information provided on this page are intended to help self-directed investors evaluate exchange traded products (ETPs), including, but limited to exchange traded funds (ETFs) and exchange traded notes (ETNs). Criteria and inputs entered, including the choice to make ETP comparisons, are at the sole discretion of the user and are solely for the convenience of the user. Analyst opinions, ratings and reports are provided by third-parties unaffiliated with Fidelity. All information supplied or obtained from this page is for informational purposes only and should not be considered investment advice or guidance, an offer of or a solicitation of an offer to buy or sell a particular security, or a recommendation or endorsement by Fidelity of any security or investment strategy. Fidelity does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating ETPs. Fidelity makes no guarantees that information supplied is accurate, complete, or timely, and does not provide any warranties regarding results obtained from their use. Determine which securities are right for you based on your investment objectives, risk tolerance, financial situation and other individual factors and re-evaluate them on a periodic basis.

Before investing in any exchange traded product, you should consider its investment objective, risks, charges and expenses. Contact Fidelity for a prospectus, offering circular or, if available, a summary prospectus containing this information. Read it carefully.