Peter Schiff Sees More Pain Ahead After $3 Trillion Wipeout, While Gary Black Spots a Tech Buying Opportunity: 'The Market Has Reset'

Wall Street’s post-election rally quickly gave way to a brutal selloff Thursday, as investors reassessed the outlook for AI infrastructure spending and the potential impact of Democratic control of Congress. Economist Peter Schiff warned of further losses, while investor Gary Black saw an opportunity to buy beaten-down technology stocks.

Peter Schiff Predicts More Stock Market Pain

Schiff said the market decline was justified, contrasting it with Wednesday’s rally following the Democrats’ sweeping midterm victory.

“Expect more days like today,” Schiff warned, arguing that the political shift could bring slower economic productivity, bigger government, wider budget deficits and increased regulation.

He also predicted higher taxes, inflation and interest rates, which he believes would weigh on the U.S. economy and stock market.

Schiff blamed Republicans and Fox News for the political reversal, arguing that President Donald Trump’s administration failed to break away from economic policies that contributed to America’s decline.

He further warned that Democratic socialist policies could accelerate those economic problems.

Yesterday's stock market rally in the face of the Democratic landslide made no sense. In contrast, today's sell-off makes perfect sense. Expect more days like today. As a result of the change in the political direction of the country, the U.S. economy will be less productive,…

— Peter Schiff (@PeterSchiff) November 5, 2026

Gary Black Sees Opportunity In Beaten-Down Tech Stocks

Taking a different view, Black, managing partner of The Future Fund, said the market had already adjusted to the Democratic victory.

“The market has reset after the landslide midterms blue wave, which was largely expected,” Black wrote on X.

He noted that Kalshi had assigned a 71% probability to Democrats winning control of both chambers of Congress.

Black said he would look to accumulate beaten-down media and technology stocks that could benefit from a slower AI infrastructure buildout, specifically naming Alphabet Inc. (NASDAQ:GOOG) (NASDAQ:GOOGL), Meta Platforms, Inc. (NASDAQ:META) and Amazon.com, Inc. (NASDAQ:AMZN).

He described their valuations as reasonable relative to projected revenue growth.

$3 Trillion Wiped Out In Wall Street Rout

Thursday’s sell-off erased approximately $3 trillion from the S&P 500’s market value, while the Nasdaq Composite recorded its worst session since the 2020 pandemic.

The State Street SPDR S&P 500 ETF Trust (NYSE:SPY) fell 4.41% to close at $733 on Thursday and rose 0.25% to $734.81 in extended trading. The Invesco QQQ Trust (NASDAQ:QQQ) fell 6.49% to $647.05 and rose 0.83% to $652.43 in after-hours trading.

The Technology Select Sector SPDR ETF (NYSE:XLK) plunged 8%, while the VanEck Semiconductor ETF (NASDAQ:SMH) fell 11.21%.

Nvidia Corp. (NASDAQ:NVDA) dropped 9.26%, Advanced Micro Devices, Inc. (NASDAQ:AMD) tumbled 17.26% and Micron Technology Inc. (NASDAQ:MU) slid 17.46%.

Elon Musk’s Tesla Inc. (NASDAQ:TSLA) and Space Exploration Technologies Corp. (NASDAQ:SPCX) declined 10.77% and 9.05%, respectively.

However, the stocks staged an overnight rebound, with Nvidia gaining 1.24%, AMD 3.37%, Micron 4.11%, Tesla 0.58% and SpaceX 2.49%.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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