Market Pulse Daily Digest for November 6, 2026
Fear retreats, chips and biotech bounce: sellers may be losing their grip
Yesterday started with the VIX, Wall Street's fear gauge, still elevated at 26.6. By the close it had fallen to 24.0. That single-day drop signals fear is fading, though it remains well above the one-year average of 18. The morning opened cautiously. Earlier in the week, NVDA had fallen 9.3% and TSLA dropped 11% in a single day. Yesterday the mood flipped. NVDA gained 4% and TSLA jumped 5%, drawing institutional buyers back into large-cap tech. RSI, a momentum gauge, climbed from 33.5 to 38.2. That move matters because it shows selling pressure is easing. The 10-year Treasury yield also eased over the past two weeks, removing a small headwind for stock valuations. Semiconductors led the recovery. SMH, the chip-sector fund, surged 4% yesterday. It still sits 31% below its 52-week high, so the bounce is real but the hole is deep. Biotech also gained ground. XBI rose 2% and held above $155, a level worth watching. If it closes above that level two days in a row, buyers are likely returning in size. Nuclear energy stood out. NLR gained 4% yesterday yet remains 47% below its 52-week high. Power-demand growth is the long-term driver, but one good day is not a trend. What could reverse all of this: any hawkish Fed signal or fresh AI spending concerns could send chips and biotech lower again. The VIX needs to fall back below 20 before risk is truly off the table. Yesterday was a step in the right direction. Keep new positions small until the data confirms the turn is real.
Source articles:
- Fear gauge retreats, momentum lifts off the floor: a week of damage, a hint of repair
- Fear gauge pins extreme, yields ease: the selloff may be handing buyers a window
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