U.S. equity markets were broadly lower in afternoon trading on Thursday, November 6, 2025, as investor sentiment was dampened by fresh concerns over the labor market and resurfacing worries about artificial intelligence (AI) stock valuations. The major indexes, which had shown some resilience earlier in the week, were firmly in negative territory, reflecting a cautious mood across Wall Street.<\/p>\n
As of Thursday afternoon, the benchmark S&P 500<\/a> (SPX<\/a>) had dropped 1.1%, retreating 0.97% and falling to 2-week lows. The tech-heavy Nasdaq Composite (IXIC<\/a>) bore the brunt of the selling, declining 1.8%. Meanwhile, the Dow Jones<\/a> Industrial Average (DJIA<\/a>) was down 421 points, or 0.9%, with some reports indicating a 0.76% decline. This downturn follows a mixed performance earlier in the week, where markets had seen some recovery from an initial plunge in AI and tech sectors.<\/p>\n Technology stocks were notably the heaviest weights on the market, particularly large-cap companies whose valuations have a significant impact on the broader market's direction. The CBOE Volatility Index (VIX<\/a>), often referred to as the market's "fear gauge," was observed at 18.01, down 5.2% from its previous close, suggesting that while the market was down, there wasn't a widespread panic. However, advancers outnumbered decliners on the NYSE<\/a> by a 2.09-to-1 ratio, and on the Nasdaq, a 1.84-to-1 ratio favored advancing issues, indicating some underlying strength despite the index-level declines. This suggests that while large-cap tech was struggling, other areas of the market saw positive movement.<\/p>\n Investors are closely monitoring several key events and economic data releases that could influence market direction in the coming days and weeks. A significant factor remains the ongoing U.S. government shutdown, now in its sixth week, which continues to delay official economic data releases. This situation places an even brighter spotlight on private sector data.<\/p>\n Looking ahead to Friday, November 7, the preliminary November consumer sentiment data from the University of Michigan will be released. The consensus estimate is 54, a slight increase from October's 53.6, but still near historical lows. Inflation expectations within this report will be a critical focus for investors and policymakers.<\/p>\n Further into November, the economic calendar includes the release of CPI ex-Food & Energy NSA Y\/Y on November 13 and PPI ex-Food & Energy NSA Y\/Y on November 14. However, the release of these crucial October price reports is uncertain, barring a last-minute resolution to the government shutdown. The Federal Open Market Committee (FOMC) Minutes are also scheduled for release on November 19.<\/p>\n Market participants are also keenly watching for signals from the Federal Reserve regarding future interest rate policy. Despite Chairman Jerome Powell's unexpectedly hawkish tone following the last Fed meeting, the CME Group's FedWatch gauge indicates a 67.5% chance of a rate cut in December. This expectation is bolstered by recent grim labor market data.<\/p>\n Corporate earnings continue to drive significant stock movements. Several companies reported their latest quarterly results, leading to notable price swings.<\/p>\n Among the companies experiencing significant declines, Nvidia<\/strong> (NVDA<\/a>) fell 4.2%, extending losses from yesterday where it slipped below $200 a share. This comes after reports that China will not allow companies to use state funds to purchase AI chips made abroad. Other tech giants also faced pressure, with Microsoft<\/strong> (MSFT<\/a>) slipping 1.9% and Amazon<\/strong> (AMZN<\/a>) falling 2.4%.<\/p>\n The food delivery app DoorDash<\/strong> (DASH<\/a>) sank a sharp 15.2%, or nearly 15%, after missing profit estimates and issuing a weak outlook, warning of significantly increased spending on product development next year. Language learning platform Duolingo<\/strong> (DUOL<\/a>) also nosedived 26% following weaker-than-expected current-quarter guidance. Auto retailer CarMax<\/strong> (KMX<\/a>) saw its shares drop a further 10% after providing preliminary fiscal 2026 third-quarter guidance that missed expectations and announcing a leadership change. Tesla<\/strong> (TSLA<\/a>) also saw its stock fall 3% ahead of a crucial shareholder vote on CEO Elon Musk's proposed $1 trillion pay package.<\/p>\n Conversely, some companies celebrated strong earnings. Software company Datadog<\/strong> (DDOG<\/a>) jumped 20.1%, soaring 21% after its latest earnings surpassed analysts' forecasts. Rockwell Automation<\/strong> (ROK<\/a>) rose 3.9% after delivering results that easily beat expectations. Snap<\/strong> (SNAP<\/a>) surged 12% following better-than-expected quarterly revenue and the announcement of a $400 million deal with Perplexity AI. In the semiconductor sector, Arm Holdings<\/strong> (ARM<\/a>) jumped more than 3% in pre-market trading<\/a> after exceeding earnings estimates and issuing strong guidance. Marvell<\/strong> (MRVL<\/a>) also saw a pre-market boost of over 7% on reports that SoftBank was considering a takeover.<\/p>\n Other notable corporate news included Lumentum Holdings Inc.<\/strong> (LITE<\/a>), whose shares jumped 23.6% after reporting strong third-quarter adjusted earnings. McDonald's Corp.<\/strong> (MCD<\/a>) rose 2.2% after posting third-quarter revenues that beat estimates. Pharmaceutical companies also made headlines, with Amgen Inc.<\/strong> (AMGN<\/a>) climbing 7.8% and Exelixis Inc.<\/strong> (EXEL<\/a>) surging 6.5% after both reported strong third-quarter adjusted earnings. In the weight-loss drug market, Metsera<\/strong> (MTSR<\/a>) surged 12% on news that Pfizer<\/strong> (PFE<\/a>) intended to sweeten its acquisition offer amidst a bidding war with Novo Nordisk<\/strong> (NVO<\/a>).<\/p>\n A private report from Challenger, Gray & Christmas revealed a grim picture of the labor market, with U.S. companies announcing the most job cuts in any October in over 20 years, surging 175.3% year-over-year to 153,074. Hiring also slowed to a 14-year low. This report contrasted with earlier ADP data, which showed private payrolls increasing by 42,000 in October, exceeding consensus estimates. The Institute of Supply Management (ISM) also reported that the services PMI for October rose to 52.4% from 50% in September, indicating an expansion of services activities.<\/p>\n The weakness in technology and semiconductor stocks was a significant drag on the broader market today<\/a>. However, a decline in bond yields, with the 10-year Treasury falling to 4.09% from 4.16% late Wednesday, provided some limiting factor to the downside in stocks.<\/p>\n Adding to the market's complexities, the Supreme Court began hearing arguments on the legal validity of sweeping tariffs imposed by the Trump<\/a> administration. Judges appeared unconvinced by the administration's stance, raising hopes among market participants that some of these tariffs might be recalled if the apex court delivers an adverse verdict.<\/p>\n The Federal Aviation Administration's announcement to reduce air traffic by 10% starting Friday across 40 "high-volume" markets due to staffing problems stemming from the government shutdown also impacted airline stocks. American Airlines<\/strong> (AAL<\/a>), Delta Air Lines<\/strong> (DAL<\/a>), and United Airlines<\/strong> (UAL<\/a>) all saw declines.<\/p>\n","protected":false},"excerpt":{"rendered":" U.S. equity markets were broadly lower in afternoon trading on Thursday, November 6, 2025, as investor sentiment was dampened by 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