Big Tech's $750 Billion Rally Fades, and the September Inflation Print Sets the Backdrop

A $750 billion rally in Big Tech shares was tied by Reuters to Democrats' sweep of the midterm elections, in a report published November 4, 2026.

The gains did not hold through the week. Tech stocks led a modest rebound on Friday, November 6, but the major indexes still finished lower for the week, according to Reuters.

In my view, a one-day bounce inside a weekly decline is a weak signal on its own. Traders will want to see whether leadership in the rebound persists into the next session before reading it as a change in trend.

Inflation is the other thread. The Consumer Price Index, or CPI, measures the average change over time in what urban consumers pay for a market basket of goods and services. In September 2026, the all-items index rose 0.6 percent on a seasonally adjusted basis and was up 3.7 percent over the year on a not seasonally adjusted basis, per the Bureau of Labor Statistics. Excluding food and energy, the index rose 0.3 percent seasonally adjusted and was up 2.6 percent over the year unadjusted. Gasoline prices rose 34.2 percent from September 2025 to September 2026.

Seasonal adjustment strips out predictable calendar patterns so that monthly changes can be compared. Year-over-year changes are usually quoted unadjusted, since the twelve-month comparison already cancels the seasonal pattern. On that basis, the September headline rate of 3.7 percent sits 1.1 percentage points, or 110 basis points (one hundredth of a percentage point each), above the core rate of 2.6 percent.

The broader context here points to energy. A gap that size suggests energy was a major contributor to the headline, particularly with gasoline up 34.2 percent over the same twelve months. Energy is volatile, and a sharp move at the pump can lift the headline without changing the underlying trend in core prices. That distinction matters for anyone trying to tell a passing shock from a broader drift.

For households, the headline figure is the one felt at the pump and at the checkout. For borrowers and savers, the question is how inflation compares with the interest they pay or earn. A headline rate near 3.7 percent erodes purchasing power faster than a 2.6 percent core rate would, and a family that spends heavily on fuel feels that gap more directly.

The next three readings are on the calendar. The October CPI is scheduled for release on Tuesday, November 10, 2026, at 8:30 a.m. Eastern Time, per the BLS release schedule. The November index is due on December 10, 2026, at 8:30 a.m., and the December index on January 13, 2027, according to the BLS schedule. Tomorrow's October print will be the first CPI reading released after the tech rally and the Friday rebound, making it the first hard inflation data point to set against the market moves.

The rally has a specific group at its center. The "Magnificent Seven," which includes Nvidia, Alphabet and Apple, was expected to grow earnings by 23.5 percent in 2026, a figure Reuters reported in January.

Three things are known as of November 9, 2026: the $750 billion rally, the one-day rebound alongside weekly losses, and the September inflation figures. What the October data will show, and whether energy continues to drive the headline, is not yet known.