Wall Street opened with a shudder on Friday, November 7, 2025, as a wave of uncertainty swept through global financial markets. The S&P 500 slipped about 0.5%, the Nasdaq dropped 0.8%, and the Dow slid roughly 190 points, or 0.4%—all three major indices firmly on track for a down week, according to Invezz. The culprit? A broad selloff in heavyweight technology stocks, mounting concerns over artificial intelligence valuations, and a protracted U.S. government shutdown that has left policymakers and investors flying blind.
Across the week, the mood on Wall Street soured as tech giants including Nvidia, AMD, Microsoft, and Palantir Technologies led the charge downward. Thursday’s session was particularly brutal: Nvidia lost 3.7%, Advanced Micro Devices plunged 7.3%, and Palantir shed 6.8%, wiping out billions in market value. The Nasdaq tumbled 1.9%, the S&P 500 dropped 1.1%, and the Dow slipped 0.8%—a cascade that echoed across Friday’s opening bell, with S&P 500 futures down 0.3%, Nasdaq 100 futures off 0.4%, and Dow futures falling 0.3% in pre-market trading.
According to The Daily Upside, the selloff was not limited to the United States. Asia-Pacific markets tracked Wall Street’s declines, with Japan’s Nikkei 225 tumbling 1.19% to close at 50,276.37, South Korea’s Kospi falling 1.81%, and Australia’s S&P/ASX 200 dropping 0.66%. AI-related stocks were the key drag globally: SoftBank in Japan closed down 6.87%, Advantest lost 5.54%, and South Korea’s memory chip giants Samsung Electronics and SK Hynix fell 1.31% and 2.19%, respectively. Even Hong Kong’s Hang Seng Index and China’s CSI 300 weren’t spared, falling 0.92% and 0.31%.
The tech rout was compounded by a string of disappointing corporate updates and economic signals. Qualcomm’s shares tumbled after warning it could lose key business from Samsung, despite issuing an upbeat outlook. Consumer-facing companies didn’t fare much better: DoorDash slid over 16% after missing profit expectations, Tapestry fell on a bleak holiday forecast, and Tesla edged lower ahead of a major shareholder vote, as reported by The Daily Upside. The overall mood was summed up by the fact that losing stocks far outnumbered winners, resulting in what many analysts called a "rough day for the market."
Labor market jitters added to the anxiety. New data revealed the highest job cuts for any October since 2003, and unemployment ticked up, even after a surprisingly strong ADP jobs report. These mixed signals left investors scratching their heads—and, crucially, left the Federal Reserve with less clarity as it heads toward a critical December interest rate decision. The 38-day government shutdown, now the longest in U.S. history, has only deepened the data void. Without key economic indicators, central bankers and traders alike are, in a sense, navigating with their eyes closed.
“The bigger concern is that without official economic data, the Fed has less information to make its December interest rate decision,” Invezz noted. This data blackout, caused by the shutdown, has forced market participants to rely on anecdotal evidence, company earnings, and whatever scraps of information can be gleaned from the private sector. Some analysts, however, remain "cautiously optimistic that a rate cut in December, combined with the resolution of the shutdown and tariff issues, could spark a year-end rally."
The tech sector’s woes were mirrored in the AI space, where previously sky-high valuations are now under intense scrutiny. Investors are questioning whether the growth story for artificial intelligence can justify the lofty prices attached to companies like Nvidia and AMD. As one Wall Street observer put it, "Artificial intelligence valuations have become the central concern," with heavyweight tech stocks leading the charge downward throughout the week. The selloff has prompted a broader market rotation, with investors seeking safer ground as volatility ticks upward.
Meanwhile, the one bright spot in a gloomy week was Tesla. The electric vehicle maker’s stock climbed 0.7% in early trading on Friday, after shareholders overwhelmingly approved Elon Musk’s $1 trillion compensation package. An impressive 75% of shareholders voted in favor of the deal, which will be structured in 12 tranches tied to ambitious milestones—including achieving a $2 trillion market cap and delivering 20 million vehicles. While the approval signals strong investor confidence in Musk’s vision for AI and robotics, it stands out as a rare piece of positive news in an otherwise downbeat market.
Looking ahead, all eyes are on Nvidia’s upcoming earnings report, scheduled for November 19, 2025, after the market close. Wall Street expects adjusted earnings per share of $1.25—a 54% year-over-year increase—and revenue of $54.77 billion. Any miss on these numbers, or disappointing forward guidance, could trigger another leg down for tech stocks and the broader market. As Invezz put it, "This report could be the catalyst that either stabilizes the market or accelerates the selloff."
Global economic concerns are also mounting. In China, October exports plunged 1.1% in U.S. dollar terms from a year earlier, missing expectations of 3% growth and marking a sharp reversal from September’s 8.3% surge. Imports grew just 1% year on year, also missing forecasts. Economists point to weak domestic demand, a prolonged housing slump, rising job insecurity, and the tapering of stimulus measures as key factors weighing on Asia’s largest economy. These headwinds in China have global implications, especially for companies reliant on international trade and supply chains.
Elsewhere in Asia, India’s Nifty 50 managed a modest 0.11% gain while the Sensex was flat. Shares of Bharti Airtel slumped after a unit of Singapore-based Singtel sold a stake in the Indian telecom giant for 1.5 billion Singapore dollars ($1.15 billion). Singtel shares, meanwhile, gained as much as 2.67% after hitting an all-time intraday high, as the company continues to "proactively optimise its portfolio through asset recycling," according to CFO Arthur Lang.
Back in Washington, the government shutdown remains the biggest wild card. Senate Republicans have proposed a plan to extend the funding deadline beyond November 21, but with flight restrictions being implemented due to staffing shortages, the pressure is mounting for a swift resolution. The longer the shutdown drags on, the greater the risk to the economy—and the less visibility the Fed and investors will have as they try to steer through choppy waters.
Despite the doom and gloom, a few bright spots emerged: Datadog surged on rosy guidance, and Eli Lilly posted gains thanks to a new drug pricing deal. But with profit warnings, sector-wide declines, and policy uncertainty dominating the headlines, most market participants are preparing for heightened volatility in the weeks ahead.
For now, Wall Street and its global counterparts are left to wait—watching for signs of stability, clarity from policymakers, and, perhaps, a spark that could turn caution into confidence as 2025 draws to a close.
