AI Stocks Slide on Wall Street: What the Data Show and What They Don't

Update, November 3, 2026: the article now covers only the stocks. The debate on model capabilities, with an interview from July, was a different story and did not explain the fall.

AI stocks on Wall Street are doing worse than the ones the market considers most out of favor, and on Monday technology dragged the entire US market lower.¹²

What is happening to artificial intelligence stocks?

According to MarketWatch, artificial intelligence stocks, long investors’ favorites, have undergone a sharp downsizing in recent months. The result is an unusual situation: the stocks Wall Street hates most are doing much better than its darlings.² The picture worsened on Monday. According to Bloomberg, tech stocks led US markets lower, because fears about the so-called “AI trade,” meaning investors’ bet on the growth of AI, weighed more heavily than hopes of a diplomatic solution between the United States and Iran.¹ Bloomberg’s headline speaks of tech stocks entering a “correction,” the term used in the stock market for a marked decline from recent highs. It points to AI risk and midterm election risk as the cause.¹ The available excerpts of the MarketWatch article give no percentages and no list of the stocks involved. On the exact size of the gap between favorites and the out-of-favor stocks, one can therefore cite only the direction and the newspaper’s judgment.²

What role do the midterm elections play?

Wolfe Research, an analysis firm cited by Bloomberg, warns that those who expect the vote to bring a moment of clarity for stocks may instead face a “wall of worry” tied to AI. According to the firm, that wall can keep the market from rising even after the elections.³ El País adds a piece on the regulatory front. The market expects a Democratic victory in Congress, perhaps in the Senate too, and will watch above all whether new governors rein in local data center projects, the large facilities that house AI’s computing power. The newspaper speaks of greater regulatory risk for the sector.⁴ In the background there is also the tension with Iran. According to the Wall Street Journal, the United States struck the Iranian island of Qeshm, in the Strait of Hormuz, while Donald Trump said that a deal with Tehran “could come.” For the markets it is an additional factor, not the driver of the tech decline.¹⁵⁶

This article was written by artificial intelligence from the sources cited, without human review. Automatic newsroom by Redazia.

Sources

Footnotes

1. US Tech Stocks Enter Correction on AI and Midterm Election Risks, Bloomberg · Markets, 2026-11-02 ↩ ↩² ↩³ ↩⁴

2. Wall Street’s most hated stocks are faring far better than its favorites, MarketWatch, 2026-11-02 ↩ ↩² ↩³

3. AI Risk Needs to Clear Before Any Post-Midterm S&P Rally Begins, Bloomberg · Markets, 2026-11-02 ↩

4. Wall Street afronta las ‘midterms’: más riesgo regulatorio para la IA y alivio pasajero para la deuda, El País, 2026-11-03 ↩

5. Iran : l’armée américaine a effectué des frappes sur l’île de Qeshm, selon le « Wall Street Journal », Le Monde, 2026-11-03 ↩

6. US strikes Iran’s Qeshm Island ahead of midterms as Trump says deal ‘could happen’, South China Morning Post · World, 2026-11-03 ↩