Indices · 6 November 2026
US Tech Sell-Off Drags S&P 500 Into Correction; DAX at New Highs
Both indices whipsawed this week as midterm results lifted sentiment before a sharp tech reversal erased gains ahead of US jobs data.
Ultimo Research
The S&P 500 plunged 4.36% on Thursday to close at 7,353.73, its worst day since April 2025. The Nasdaq dropped into correction territory, falling more than 10% below its recent record. The reversal followed the Democrats' unexpectedly decisive midterm victory and hopes of de-escalation in the US-Iran conflict, which sent oil prices sharply lower. A post-election slide in chipmakers snowballed as investors bailed from technology shares on speculation that congressional Democrats will clamp down on the artificial-intelligence industry.
Frankfurt's DAX 40 surged 2.2% to close at 26,438 on Wednesday, then climbed to a new all-time intraday high of 26,692.90 on Thursday, surpassing the previous record of roughly 26,618.74 set on 28 August 2026. The index closed at 26,325.01 points, down 0.43%, with a reversal of more than 360 points from that peak. The STOXX 600 enters the weekend holding a year-to-date advance of more than 10%, leapfrogging the S&P 500, whose 2026 performance has compressed to just over 7%.
What the calendar says
The US jobs report for October lands today at 12:30 UTC. The US economy added 29K jobs in September 2026, well below forecasts, with July and August combined 60K lower than previously reported. A stronger-than-expected print today could reinforce a hawkish Federal Reserve bias, while weakness would fuel expectations of rate cuts and may extend the rotation out of large-cap technology.
US inflation data arrives 10 November at 12:30 UTC. The consumer-price index will update the picture on pricing pressures four days after payrolls and feeds directly into the Fed's policy calculus. Both releases bear heavily on equity indices through their influence on interest-rate expectations and the dollar.
S&P 500: technical picture
The index broke sharply below 7,400 on 5 November after testing that level multiple times in late October. Thursday's close at 7,353.73 sits roughly 4.4% below the 7,700 area touched in late October. A horizontal support zone near 7,380 was breached intraday, and the chart shows a spike low near 7,320 during the Thursday session. The 7,300–7,350 band now acts as near-term support; a sustained break below it would open 7,200 and then the October lows near 7,100. On the upside, recovery requires a reclaim of 7,450 to ease downside pressure, with 7,550 and 7,650 as subsequent resistance.
DAX 40: technical picture
The index rose to around 26,650 on Thursday, surpassing the previous record high set in August. The chart reveals a steady climb from below 25,200 in mid-October to the recent peaks near 26,700, punctuated by a sharp rally from 25,800 on 3 November. Resistance sits near 26,700, 26,800 and 27,000, with support at 26,500, 26,200 and 26,000. The 26,000 level, marked by the horizontal red line on the chart, has acted as a pivot; the index briefly dipped below it during the October consolidation and has reclaimed it decisively this week. A close back under 26,200 would test the breakout; holding 26,300 keeps the door open to another attempt at 27,000.
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