I couldn’t resist…this is a mini-CRIB from the field, so to speak. I’m taking one of the Brownstone sessions off to pen this report.
After yesterday’s massive market breakdown there’s much to discuss.
Lots of heavy technical damage happened as the main equity indexes all fell hard. Harder than they moved upward on Wednesday after the elections.
The tech shares were at the center of the storm with the Semiconductor index falling a stunning -12.5% and the NASDAQ nearly 7%.
That move fell through all sorts of support and has eaten up about ½ of the ‘war rally,’ whatever that was about.
Not helping is that Democrats are moving to limit data centers, without which the entire “infinite growth forever!” stories of Nvidia and the hyperscalers takes a big hit.
*TEXAS GOVERNOR-ELECT GINA HINOJOSA: WE NEED TO STOP WHAT WE ARE DOING WITH DATA CENTERS UNTIL WE HAVE MEASURES TO PROTECT TEXANS*HINOJOSA: ITS NOT THT I HATE DATA CENTRES, I HATE THE WAY THEY ARE TAKING ADVANTAGE OF TECAS AND THAT STOPS WHEN IM GOVERNOR https://t.co/DNitYT0Tl7 pic.twitter.com/6vqOhcCuip
— Nicholas Mugalli (@RealNickMugalli) November 5, 2026
Then there are the rumors of big players taking big losses behind the scenes:
BREAKING: A mystery seller is trying to dump about $500 million in data center loans all at once, per Bloomberg, days after the midterms raised doubts about many projects.The anonymous seller is auctioning a dozen loans, including a $25 million piece of financing for a huge…
— unusual_whales (@unusual_whales) November 5, 2026
One of them is certainly Softbank:
SOFTBANK PLUNGES 59% AS DEBT-FUELED AI BETS UNRAVELSoftBank shares fell another 10.8% Friday, extending losses to 59% since early June.The company added $40.4 billion in debt over 12 months to fund AI investments, including $64 billion in OpenAI.Meanwhile, Arm shares have…
— *Walter Bloomberg (@DeItaone) November 6, 2026
The ten-year bond yield should have fallen a lot more than it did yesterday. In a big wipeout like that, there’s a flight to safety which causes bonds to be bought, which makes their prices rise and their yields fall. Yet the ten-year bond only ‘rallied’ for 5 basis points.
One reason for the tepid bond response is probably the fact that inflation is high and rising, and there’s no political appetite to cut spending in DC.
US producer prices are surging again…PPI inflation is now approaching 6%, while CPI remains above 3%.The gap between producer and consumer inflation is widening sharply…Businesses are facing rising costs that have yet to be fully passed on to consumers.Brace for… pic.twitter.com/xgZJWP7etX
— Lukas Ekwueme (@ekwufinance) November 5, 2026
Bank Failures
The spate of bank failures and ‘technical issues’ is concerning and I’m wondering if they aren’t connected to
by travissidelinger 
