Stock Market Live November 6: S&P 500 (SPY) Climbing Despite AI Valuation Concerns

Analysts at Bank of America just upgraded DigitalOcean (NYSE: DOCN), noting that it’s poised to benefit from rising AI inferencing demand.

They double upgraded the stock with a price target of $60 from $34.  They also pointed to growing demand, estimating that DOCN’s preliminary revenue guidance for 2026 is approaching 20%.  And they like DOCN’s strong EBITDA growth, as well as its accelerating annual recurring revenue.

Analysts at Cantor Fitzgerald also raised their price target on DOCN to $47 from $37.

As noted by Investing.com, “The firm cited DigitalOcean’s strong third-quarter 2025 results, which included record incremental annual recurring revenue (ARR) and increased traction with new AI-native and digital-native customers. The company has pulled forward its 2027 revenue growth target of 18-20% to 2026, prompting the analyst to raise estimates.”

DOCN last traded at $47.32, up $1.47 on the day.

The major indices are deep in the red over concerns about the state of the labor market.

This morning, we learned that October saw a significant number of layoffs. In fact, October job cuts totaled 153,074, an increase of about 183% from September, and 175% year over year. That’s the highest read for October in about 22 years.

That’s according to Challenger, Gray & Christmas.

“October’s pace of job cutting was much higher than average for the month. Some industries are correcting after the hiring boom of the pandemic, but this comes as AI adoption, softening consumer and corporate spending, and rising costs drive belt-tightening and hiring freezes. Those laid off now are finding it harder to quickly secure new roles, which could further loosen the labor market,” said Andy Challenger, workplace expert and chief revenue officer for Challenger, Gray & Christmas.

If the U.S. Supreme Court says President Trump needs to refund some tariffs, analysts at Wells Fargo believe stocks, such as Five Below (FIVE), Best Buy (BBY), Nike (NKE), and Tapestry (TPR) could benefit. At the moment, investors believe the Supreme Court will rule against Trump’s trade policy after some justices expressed concerns about the legality of trade taxes.

“The legal question is whether a 1977 law called the International Emergency Economic Powers Act, or IEEPA, which allows the president to regulate imports when there is an emergency, extends to the power to impose global tariffs of unspecified duration and breadth,” says NBC News. “But even if he were to lose at the Supreme Court, Trump has levied other tariffs under different laws that would survive.”

Analysts at Bernstein reiterated an outperform rating on Nvidia ahead of earnings and said NVDA is a key player in the robotic chip market.

Loop Capital reiterated its buy rating on Nvidia and hiked its price target to $350 from $250. The firm believes NVDA can double its GPU shipments over the next year to 15 months to 2.1 million by the January 2026 quarter.

NVDA is expected to post earnings on November 19 after the closing bell.

In its second quarter, NVDA’s revenue of $46.7 billion was up 6% from the first quarter, and up 56% year over year. Data center revenue of $41.1 billion jumped 5% quarter over quarter, and 56% year over year.