Hey Superheroes,
The Nasdaq Composite fell 5.52% to 24,315 on 5 November as investors sold AI and chip stocks in response to Democrat midterm victories, which raised fears of stricter AI data-centre regulation. The Dow shed 1,833 points and the S&P 500 fell 4.36%. The Philadelphia Semiconductor Index dropped more than 12% on the session, its worst day in months.
An Australian institution did not make it to the end of the week. David Jones, trading for 188 years, entered voluntary administration and receivership on 5 November after crisis talks with its landlord Scentre Group (ASX:SCG) broke down. The chain had not paid rent since 30 September 2026 and had reportedly failed to file its 2026 accounts with ASIC.
The RBA raised the cash rate by 25 basis points to 4.85% on 3 November, Melbourne Cup day, its fifth increase of 2026 and the highest rate since late 2008. The board voted 6 to 3, citing persistent inflation, rising oil prices and the unresolved Middle East conflict.
AI meltdown hits Wall Street
Qualcomm topped its fourth-quarter estimates but its first-quarter earnings outlook fell short of Wall Street expectations, giving the market a company-specific reason to sell chips. The midterm results gave it a macro one. By the close on 5 November, the AI and semiconductor sector had shed more in a single day than any session since the spring, pulling the Nasdaq to its steepest one-day fall in months.
The numbers
Nvidia (NASDAQ:NVDA) fell 9.26% to $181.60, with its market cap standing at $4.82 trillion after the session. Qualcomm (NASDAQ:QCOM) slid more than 9% after reporting fourth-quarter smartphone chip revenue of US$5.14 billion, 26% below a year earlier and short of Wall Street estimates. AMD (NASDAQ:AMD) fell 17.26% and Broadcom (NASDAQ:AVGO) dropped 10.43%. The Philadelphia Semiconductor Index shed more than 12%.
What drove the selloff
Two forces converged. Qualcomm’s quarterly miss gave the market a chip-specific reason to reduce exposure; the midterm result gave it a broader one. Democrats’ gains raised the prospect of stricter AI regulation and restrictions on data-centre construction, with some lawmakers citing rising electricity prices as grounds for a slowdown or pause in AI infrastructure buildout. Analyst Jakub Rochlitz said the market was pricing in an AI buildout that would be “slower and more expensive.” Portfolio manager Jed Ellerbroek described the scale of the moves as “outsized” for a capitulation phase but did not dispute the direction.
What the November 17 earnings date leaves open
Nvidia’s quarterly update is scheduled for 17 November, the first major earnings test for the AI sector since the selloff. The 5 November session told investors which companies the market sees as most exposed to regulation risk; it cannot say whether that risk will materialise into law. Data-centre spending commitments from hyperscalers are made years in advance, so the speed at which any new restriction affects actual revenue lags the share price move significantly. The November 17 print will be watched for whether demand guidance holds or shows the first softening under new political conditions.
Closing time for David Jones
David Jones has been a fixture on Australian high streets for 188 years. When receivers moved in on Wednesday, they inherited a retailer that had not paid its largest landlord in more than a month, was posting losses for the second consecutive year and had reportedly failed to lodge its annual accounts with the regulator.
The collapse
The chain, owned by private equity firm Anchorage Capital Partners since a 2023 acquisition worth roughly A$100 million, entered voluntary administration on 5 November. McGrath Nicol were appointed administrators. Lender Hilco Global appointed FTI Consulting as receivers and managers of ACP Riley Street Midco, the parent entity. David Jones had posted a $95.5 million loss for FY25 and a $74.1 million loss in FY24.
What brought it here
Receiver Christopher Hill cited trading conditions, rising costs, an outdated and oversized store footprint and supply chain challenges. The immediate trigger was a breakdown in talks with Scentre Group , the Westfield operator that runs 17 of the retailer’s sites. Scentre told investors it had received no rent since 30 September. David Jones had sought a rent reduction ahead of the Christmas trading period; the talks failed. The chain currently operates 38 stores, and the receivers are expected to announce closures in coming days.
What the Christmas trade can’t answer
CEO Erica Berchtold said the company has a reset plan it will pursue with administrators, while staff have been told they will continue to be paid. Anchorage Capital’s roughly A$100 million investment is likely to be wiped out entirely. Retail analyst Matthew Bailey observed that the future depends on whether a buyer is willing to take on a “sector that has been in decline for a long time.” The receivers will oversee the business through Christmas, the strongest revenue period on the retail calendar. What that trade delivers will shape what an eventual sale is worth and whether a buyer emerges at all.
Some other things we’re shining the Spotlight on:
Westpac posts A$7bn cash profit in FY26
Westpac (ASX:WBC) reported cash profit of A$7.0 billion for FY26, the year ending 30 September 2026, edging above analyst consensus of about A$6.96 billion. Statutory net profit came in at A$6.8 billion, and the final dividend was lifted 1% to 154 cents per share. CEO Anthony Miller said the economy was holding up “relatively well” but warned that inflation remained above the RBA’s target range and that rates were likely to stay elevated into 2027.
Binance covers 90% of record US$6.3bn hack
In late October, Binance lost about US$6.3 billion in a security breach, the largest crypto theft on record. The stolen funds were not recovered — the exchange drew on its own reserves, including its Secure Asset Fund for Users and corporate treasury, to cover the losses. Binance said it had covered 90% of affected assets and began restoring withdrawals in phases from 1 November, with the remaining 10% attributed to less liquid tokens. Co-CEO Richard Teng described the breach as a complex attack involving a compromised laptop.
NAB cash earnings fall 13% in FY26
National Australia Bank (ASX:NAB) reported cash earnings of A$6.14 billion for FY26, a 13.4% fall from a year earlier and short of analyst expectations. Shares fell 7% on 5 November to a three-week low as investors weighed the miss. The result adds to pressure on the major banks as elevated funding costs and competition in home lending continue to squeeze net interest margins. NAB also walked back a controversial pre-Christmas forced redundancy plan, deferring any redundancies until the end of January.
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