S&P 500 Posts Weekly Drop as Energy, Technology Slide in Election Aftermath

04:46 PM EST, 11/06/2026 (MT Newswires) -- The Standard & Poor's 500 index fell 2.7% this week, led by declines in energy and technology stocks after the US midterm election. The S&P 500 ended the week at 7,376.86. The market benchmark is now down 3.6% for the fourth quarter and up 7.8% this year. Energy stocks sank along with crude oil futures after Democrats swept both chambers of Congress in the US midterm elections on Tuesday. "The sizable swing in the political pendulum is being touted as a pushback against primarily tariffs, the Iranian conflict, and elevated - energy - prices," Stifel economists said in a note to clients. Technology stocks also slid in the aftermath of the election. A Democratic Congress is likely to bring greater scrutiny on technology and artificial intelligence spending, Saxo Bank Investment and Options Strategist Koen Hoorelbeke said in a note. Data later in the week showed the US economy had more than twice as many October job gains as expected by Wall Street. This boosted expectations for a Federal Reserve interest rate increase next month. Total nonfarm payrolls rose by 165,000 in October, the Bureau of Labor Statistics said on Friday, compared with expectations for a gain of 70,000. The unemployment rate ticked down to 4.1% in October, while the Street expected a stable print of 4.2%. Energy shed 12% this week, followed by a 6.9% drop in technology and a 2.8% loss in industrials. Utilities, materials and health care also edged lower. Devon Energy (DVN) had the largest percentage drop in the energy sector for the week, falling 19%. The company reported Q3 adjusted earnings per share and revenue above analysts' mean estimates. Still, the company's shares fell amid the drop in crude futures and as shareholder TOMS Capital Investment Management said it was "profoundly disappointed" that Devon decided not to sell additional assets after finishing its strategic review. Lumentum (LITE) and Marvell Technology (MRVL) were among the top decliners in the technology sector as well as the overall S&P 500, sliding 36% and 28%, respectively, amid an all-stock deal between the companies. Under the agreement, the companies aim to combine Marvell's custom silicon chip technologies with Lumentum's optical components and specialized semiconductor manufacturing capabilities to create a leader in artificial intelligence connectivity. On the upside, consumer discretionary rose 2.7%, followed by a 2.3% increase in communication services and a 1.9% rise in real estate. Financials and consumer staples also rose. Airbnb (ABNB) led the gainers in consumer discretionary, climbing 16%. The company reported higher-than-expected third-quarter results that included its fastest revenue growth in more than three years. Airbnb also forecast Q4 revenue above the Street view and increased its full-year revenue guidance. Earnings reports next week are expected from companies including Cisco Systems (CSCO), Applied Materials (AMAT), KKR (KKR), Constellation Energy (CEG), Occidental Petroleum (OXY) and Take-Two Interactive Software (TTWO). Economic data will include the October consumer price index on Tuesday and the October producer price index on Friday.