Key Highlights

● Dubravko Lakos-Bujas called the sell-off an intra-cycle reset and a deleveraging event.

● A reset implies a correction within an ongoing trend.

● Citi downgraded US stocks and global tech to neutral.

● Nvidia tumbled amid a board review.

After one of the roughest weeks for technology stocks in years, investors went looking for a way to describe what had just happened. JPMorgan's Dubravko Lakos-Bujas offered one. "We see this more as an intra-cycle reset and another deleveraging event in the AI supercycle," he said, according to news reports.

The language matters. A "reset" implies a correction within an ongoing trend rather than the end of it, and "deleveraging" points to investors unwinding crowded, borrowed bets rather than abandoning the theme. On Monday, November 9, 2026, the market behaved as if many traders agreed. The S&P 500 jumped 173.08 points to 7,549.94, its best day since April 8, and the Nasdaq-100 surged to 27,907.62, its best session since March 31.

What exactly was reset

The damage being reset was severe. The Nasdaq-100 plunged on Thursday, November 5, closing at 26,629.81, and the Nasdaq Composite fell into correction territory, reports said. Market data said the tech sell-off had wiped out $2.5 trillion. The Nasdaq Composite then posted a fourth straight weekly decline, and reports said that Goldman Sachs' broad AI basket had dropped sharply in October and sat roughly a quarter below its peak heading into November 4.

The trigger, in large part, was politics. Democrats swept the November 3 midterms, and reports said worries that the results could lead to restrictions on data centers, which some voters blame for higher power bills. Strategists also pointed to mechanical selling, including negative Gamma and forced dealer hedging, which can exaggerate moves in both directions.

JPMorgan puts its picks where its mouth is

A bank's broader research desk leaned into AI on Monday as well. Analyst Doug Anmuth added Meta Platforms (NASDAQ:META) to the bank's Analyst Focus List with an Overweight rating and a $940 price target, citing AI-driven ad growth, according to market coverage, and also named Amazon (NASDAQ:AMZN) a top AI pick on accelerating cloud growth, according to market reports. Meta and Amazon both climbed. Market data reported that the bank said it does not see AI as a continued sell.

The chip complex led the charge. Advanced Micro Devices (NASDAQ:AMD) soared after an Oppenheimer upgrade, Lam Research (NASDAQ:LRCX) and Applied Materials (NASDAQ:AMAT) jumped, and the PHLX Semiconductor index enjoyed its best day since July 30.

Not everyone is convinced

Other big banks were more cautious. Citi downgraded US stocks and global technology to neutral, according to market data, with strategist a Citi strategist warning: "We worry that positioning on key indices, such as the Nasdaq, could reset lower into net-short territory." A Capital.com analyst said "the rebound looks more like a tentative recovery in risk appetite than a convincing Reversal of the recent downtrend."

Nvidia (NASDAQ:NVDA) was also a reminder that not every AI name joined the party; it tumbled amid an independent review by its board involving CEO Jensen Huang. Crypto lagged too, with Bitcoin roughly flat near $75,000, suggesting the appetite for risk was selective rather than universal.

Reset Framing Faces Its Test

Whether the "reset" framing holds may depend on the next few days. October consumer prices arrive Tuesday, and futures markets heavily favor a Federal Reserve rate hike at the December 8-9 meeting. Applied Materials, Cisco, Nebius and CoreWeave report this week, and Nvidia's results follow on November 17. Strong numbers would support the idea that last week was a deleveraging event; disappointments could revive fears that the AI cycle itself is cooling.