Markets Midday: Stocks Plunge On AI Spending Worries, Window Seat Lawsuit, Wendy's Buyout Offer 11-5-2026

0:02I'm Peter Schacknow, CNBC. Stocks are plunging today on new worries about a substantial pullback in AI spending, due in part to an already ongoing course correction and possible new restrictions from a Democratic Congress. The Dow falling 1 ,279 points at 52 ,076. The S &P 500 3.2 % lower, 248 points. and the Nasdaq Composite off earlier lows but still down 4.4 percent or 1 ,126 points. Those drops by the major averages are their worst since April of last year. Mohamed El-Erian, Allianz's chief economist, thinks ultimately a more considered approach to AI spending is beneficial for the economy.

0:44The let it rip policy leaves lots of people behind. And this is a reminder that we have to do this in a more thoughtful manner. I am completely bullish on the tech sector, on what AI will do to the economy. But I do think that we needed to course correct a little bit how it was being pursued. And it's coming a good time. Jessica Lesson, CEO and founder of the technology-focused publication The Information, says Silicon Valley executives are scrambling after the election results. People of the Valley are calling their closest Democratic VC friends and trying to make up for several years of having gone the other way.

1:20But, you know, I think the voters handed at least the big tech companies a gift by basically saying in the short term, it's going to be harder to get new compute. If you have it, it's way more valuable. A federal judge has rejected a request by Delta Airlines to dismiss a lawsuit by passengers who said they paid for window seats that did not have actual windows. Google, Meta and TikTok are suing the state of California to block a new law aimed at keeping children under 16 from becoming addicted to social media. The firms say preventing certain features violates First Amendment protections. Wendy's shares are near break-even in today's down market after the restaurant chain rejected a$1.4 billion buyout offer from investor Nelson Peltz's Tri-Anne Fund Management and its partners.

2:05Wendy's says the offer undervalues the company. Peter Schachnow, CNBC. This episode is brought to you by Schwab Market Update, an original podcast from Charles Schwab. Schwab Market Update, an original podcast from Charles Schwab, provides an information-packed daily market preview on stock updates, U.S. and global economic news, monetary policy decisions, and key results and statistics that may impact your trading. Download the latest episode and subscribe at schwab.com slash marketupdatepodcast, or find Schwab Market Update wherever you get your podcasts.