Evening Wrap, Thu 5 Nov 2026

Rough day for AI. Our AI Economy Index fell 8.4%, per Yahoo closes. The S&P 500 fell 4.36% and the NASDAQ fell 5.52%, per Yahoo closes. So the AI economy took a bigger hit than the wider market (Yahoo daily closes, 5 Nov 2026).

Picture a league where the rule makers just changed. That is how today felt for AI. Voters in Texas and Ohio picked governors who want limits on new data centers, and Texas Governor elect Gina Hinojosa promised a pause on new buildouts (Axios, 5 Nov). Data centers are where AI gets built, so the companies that supply them took the hardest hits.

What the Index tracks, super simple: the public companies that build and run the AI economy, from chips to power to robots. It matters because it shows how the whole AI economy did today, not just one big name. Our full basket, at its starting weights, fell 9.2% today, per Yahoo closes. That is a separate measure, not the Index's daily change.

Risers (only two today)

1. Toyota, up 9.35% per Yahoo closes. Toyota makes cars and is building robots and driving software. It raised its yearly profit outlook, and its Tokyo shares finished up 17% (CNBC, 5 Nov). Power Rankings: 2nd in Robotics and physical AI, steady. Good sign for Toyota, but this was a car day, not an AI day.

2. Alibaba, up 2.64% per Yahoo closes. Alibaba runs online shopping and one of China's biggest clouds for AI. We found no company news behind the move. Alibaba is in our Index but not in the Power Rankings. Jury's out.

Biggest fallers

1. AXT, down 22.76% per Yahoo closes. AXT makes the base wafers used to build the lasers that link AI data centers. No AXT news today. Chip stocks fell on worries the vote could slow data center growth (Reuters, 5 Nov). Power Rankings: 52nd in Chip equipment and manufacturing, steady. Warning sign for the whole optical supply chain.

2. Sandisk, down 22.26% per Yahoo closes. Sandisk makes flash memory that stores data in AI data centers. It was the worst performer in the S&P 500 today, as Wall Street weighed a slower AI buildout after the vote (MarketWatch, 5 Nov). Power Rankings: 10th in Chip equipment and manufacturing, down from 9th. Warning sign. Memory demand rides on new data centers.

3. Applied Optoelectronics, down 20.89% per Yahoo closes. It makes the optical parts that move data inside AI data centers. We found no sourced reason for the move during the day. Its 5 Nov results release showed record quarterly revenue of $269.9 million. Power Rankings: 36th in AI chips and networking, steady. Jury's out. Strong numbers, rough mood.

Rankings and game results describe what already happened. They are not a view on where any share price goes next. This is general information, not investment advice.

Correction: Last night's wrap said Vistra reports Thursday morning. That was wrong. Vistra's 5 Nov filing covered closing its Cogentrix deal, and it had no earnings report today. Sorry about that.

Our take: Warning sign. The AI buildout now has a political question hanging over it. Today showed the market is not waiting for the answer.

This is general information, not investment advice.