Nasdaq Sell-Off Raises Stakes Ahead of US Inflation Data

9–13 November 2026 | Alchemy Markets

Wall Street suffered one of its sharpest sell-offs of the year on Thursday as renewed concerns over artificial intelligence valuations, potential regulatory changes and elevated investment spending triggered a widespread retreat from risk.

The Nasdaq Composite plunged 5.5%, its steepest daily decline in 19 months, while the S&P 500 fell 4.4% and the Dow Jones Industrial Average lost 3.4%. Semiconductor stocks were particularly hard hit, with Nvidia declining more than 9% as investors reassessed the outlook for AI infrastructure investment.

The sell-off followed the Democrats’ victory in the US midterm elections, which raised concerns over potential restrictions on data-centre development. However, underlying worries about the profitability of substantial AI investment had already been weighing on technology stocks.

With the Nasdaq Composite entering correction territory, attention now turns to whether selling pressure will continue or whether upcoming US inflation figures can help restore market confidence.

Nasdaq 100: Can Buyers Defend Medium-Term Support?

The Nasdaq 100 has broken below the lower boundary of its ascending price channel, signalling a deterioration in the medium-term technical outlook following months of consolidation.

However, despite the sharp decline, the index remains above its rising anchored Volume Weighted Average Price (VWAP), currently situated around the 25,920 region.

This indicator represents an important area to monitor, as it provides a reference for the average price paid, weighted by trading volume, since the selected anchor point.

Should prices stabilise around this level and attract renewed buying interest, it could indicate that selling pressure is beginning to ease, potentially allowing the index to stage a recovery towards its former ascending channel.

Conversely, a sustained break below the anchored VWAP, followed by an unsuccessful attempt to reclaim it, would suggest that bearish momentum remains firmly established. Such a development could indicate weakening market confidence and increase the risk of a deeper correction.

For now, the technical picture suggests that the Nasdaq is approaching an important test of medium-term investor sentiment, with next week’s economic releases potentially determining the next directional move.

The Week Ahead

Tuesday: US CPI Takes Centre Stage

10 November | 13:30 GMT

The first major catalyst arrives on Tuesday with the release of October’s US Consumer Price Index (CPI).

Headline monthly inflation is forecast to moderate to 0.3%, down from the previous reading of 0.6%, while core monthly CPI is expected to ease from 0.3% to 0.2%.

With inflation remaining an important consideration for Federal Reserve policy, the figures could have significant implications for Treasury yields, the US dollar and equity markets.

A softer-than-expected reading could help ease concerns over persistent price pressures, potentially offering some relief to technology stocks following their recent decline.

However, stronger inflation could reinforce expectations that interest rates will remain elevated or require further tightening, adding pressure to equity valuations, particularly within the growth-oriented technology sector.

Thursday: UK GDP Tests Sterling’s Resilience

12 November | 07:00 GMT

Attention shifts towards the UK on Thursday, with the publication of third-quarter GDP figures.

The British economy is expected to have expanded by 0.7% quarter-on-quarter, accelerating from the previous reading of 0.5%.

The release follows the Bank of England’s recent decision to raise interest rates, making the strength of domestic economic activity particularly relevant for future monetary policy expectations.

Stronger-than-anticipated growth could reinforce expectations that policymakers have room to maintain a restrictive monetary stance, potentially supporting sterling.

Conversely, disappointing figures could raise concerns about the economy’s ability to withstand higher borrowing costs, creating volatility across GBP currency pairs.

Friday: US Producer Inflation Provides the Final Test

13 November | 13:30 GMT

The trading week concludes with another important US inflation release, as October’s Producer Price Index (PPI) provides further insight into price pressures across the economy.

Monthly headline PPI is expected to slow to 0.4%, compared with the previous reading of 1.3%, while core PPI is forecast to ease from 0.7% to 0.3%.

As a measure of inflation pressures faced by producers, the report could influence expectations for future consumer inflation and the Federal Reserve’s policy trajectory.

A softer reading may provide additional support for risk-sensitive assets, particularly if Tuesday’s CPI figures also indicate moderating inflation.

However, persistent producer price pressures could keep Treasury yields elevated and weigh on technology shares, potentially extending the recent market correction.

Inflation and Market Confidence in Focus

Following Thursday’s sharp equity sell-off, next week’s economic calendar arrives at a particularly sensitive moment for financial markets.

Tuesday’s CPI and Friday’s PPI will provide important tests of the US inflation outlook, while Thursday’s UK GDP figures could influence sterling and Bank of England policy expectations.

For the Nasdaq 100, the key question is whether buyers can defend the rising anchored VWAP near 25,920 or whether a sustained move below this area signals a more pronounced deterioration in market confidence.

With technology stocks already under considerable pressure, the interaction between inflation data, Treasury yields and technical support could prove decisive for market direction in the week ahead.