Fidelis Capital: AI regulation concerns drive stock market selloff
SPY•Fidelis Capital said concerns about AI regulation drove Thursday’s sell-off after an election-week rally. The VIX rose from around 17 to 27, while the 10-year Treasury yield finished near 4.8%.
1. Market volatility
Fidelis Capital’s analysis for the week ending November 6 highlighted sharp post-election volatility, with AI regulation concerns driving Thursday’s sell-off. Wednesday’s rally pushed the equal-weight S&P 500 to new highs as portfolios rebalanced away from AI stocks; on Thursday, AI-related stocks slumped amid broader risk aversion and the VIX rose from around 17 to 27.
2. Yields and earnings
The 10-year Treasury yield finished Thursday near 4.8%, down from levels well above 5% through much of October. The analysis said economic growth remained robust, with S&P 500 earnings growth in 2026 approaching levels rarely seen outside immediate post-recession recoveries.
