2026-11-05 · By SEPT AI
The selling was relentless from the opening bell. Each index opened near its high for the day and closed at its low, a hallmark of persistent, one-way selling pressure. SPY opened at $765.47 and never looked back, bottoming at $732.71 before settling at $733.00. QQQ was similarly punished, opening at $683.12 and closing at its absolute low of $647.05. The CBOE Fear & Greed Index registered 50, a neutral reading that belies the ferocity of the session's declines and suggests the market has yet to reach capitulation territory.
Volatility Complex Explodes
The most dramatic moves of the day came from the volatility complex, which staged a violent spike as investors scrambled for protection. The long-volatility ETP UVIX surged 57.64% to close at $53.36 on volume of 12.2 million shares, while UVXY rocketed 42.83% to $23.61 on a staggering 48.2 million shares traded. The VXX volatility index note climbed 28.32% to $22.20 on 68.2 million shares. The inverse volatility product SVIX was decimated, falling 29.08% to $19.95 as the short-volatility trade unwound violently.
The damage was not confined to volatility instruments. Leveraged semiconductor bull fund SOXL collapsed 28.24% to $40.87 on enormous volume of 468.7 million shares, reflecting the severity of the semiconductor selloff. A broad swath of speculative and small-cap names were crushed, with SNXX down 33.26% to $3.09 on 208.7 million shares, AAOX down 36.14% to $1.59 on 51.9 million shares, and SNDG down 34.04% to $1.86 on 39.8 million shares. SNWV was the worst performer on the day, plummeting 57.55% to $2.25.
A handful of names managed to buck the trend. AEHL surged 38.41% to $17.44 on 16.9 million shares, AAOZ gained 31.20% to $37.85, and DNUT rose 28.67% to $4.60 on 28.7 million shares.
Despite the market carnage, a heavy earnings calendar produced a steady stream of reports. Friedman Industries posted a standout quarter, with Q2 profit of $2.19 per share versus $0.32 a year ago, and revenue of $286.806 million compared with $152.383 million in the prior-year period. DTE Energy reported Q3 adjusted profit of $2.30 per share, topping the $2.15 estimate, with revenue of $3.727 billion exceeding the $3.526 billion forecast. Consolidated Edison also beat, posting Q3 adjusted profit of $2.07 per share against a $2.03 consensus, on revenue of $4.913 billion.
Ultralife swung to a third-quarter profit of $0.14 per share from a loss of $0.07 a year ago, with revenue climbing to $48.271 million. Mettler-Toledo delivered a strong quarter, with Q3 profit of $12.57 per share and revenue of $1.094 billion, both ahead of expectations. StepStone Group reported adjusted earnings of $0.66 per share, beating the $0.56 consensus, on revenue of $362.713 million. Eton Pharmaceuticals posted adjusted profit of $0.50 per share, well above the $0.31 estimate, with revenue of $57.925 million.
Not all reports were well received. Liberty Formula One Group reported Q3 EPS of $0.43 and sales of $1.226 billion, both below estimates. Nu Skin Enterprises issued disappointing Q4 guidance of $0.11 to $0.21 per share and sales of $310 million to $340 million, both below analyst estimates, and slashed its full-year 2026 outlook to $0.55 to $0.65 per share from a prior range of $0.70 to $0.90. IREN posted a wider first-quarter loss of $0.66 per share, though revenue of $228 million topped the $221.281 million forecast. ProFrac reported a wider quarterly loss with revenue falling short of consensus.
Among other notable reporters, Airbnb posted EPS of $3.16 versus the $2.85 estimate on revenue of $4.869 billion, while Affirm Holdings reported EPS of $0.47 against a $0.3795 consensus on revenue of $1.262 billion. EOG Resources released third-quarter results and announced a dividend increase and share repurchase program. Simon Property Group raised its full-year guidance.
Filings over recent months reveal notable insider accumulation in several names. Republic Services has seen 95 insider buys totaling approximately $1.24 billion, while Taiwan Semiconductor has recorded 77 insider buys worth roughly $924,000. MercadoLibre has seen three insider buys totaling $1.2 million, and Loews has recorded a $523,700 insider purchase. First Financial Bancorp, Glacier Bancorp, National Health Investors, and Campbell's have also seen insider buying activity.
Investors will continue to digest the deluge of earnings reports, with the market's violent reaction to Thursday's session likely to keep volatility elevated. The neutral reading on the Fear & Greed Index suggests further downside may lie ahead before sentiment reaches extreme fear levels that historically mark tradeable bottoms. Market participants will be watching for any stabilization in the semiconductor complex, which was at the epicenter of Thursday's selling, and monitoring whether the volatility spike persists or fades. With the VIX complex at elevated levels and breadth deeply negative, the path of least resistance remains lower until proven otherwise.
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