TAG Industrial Watch: November 7, 2026

This past week was defined by the midterm elections as democrats took control of key Senate, congressional, and gubernatorial positions throughout the U.S. The stock market initially responded very well to the “blue wave” on Wednesday. But gave up those gains and more a day later, led by a slide in AI-related stocks. On Friday, we received a positive jobs report for October where the previous two months were revised higher for a change by a combined 84,000 jobs. Notably, the manufacturing industry – driven by computer products – continued to add jobs this year, up 101,000 since a four-year low back in December. But perhaps the biggest news for industrial investors may be the continued decline in interest rates.

After jumping to the highest level in 24 years a month ago, the rate on the 10-year Treasury Note has declined by over 40 basis points to just under 4.9%. With trouble brewing in the AI/data center market, more stock investors could seek refuge in Treasuries, helping to keep a lid on rates, at least in the short term. Though inflation pressures continue to mount as foreign governments steadily reduce their Treasury holdings. In other words, it’s anybody’s guess how much lower rates can fall and for how long. But like the saying goes, “don’t look a gift horse in the mouth.” In an environment where interest rates are fundamentally poised to climb higher, industrial buyers and sellers should take advantage of any pullback in interest rates.