Wall Street ended a volatile week with a mixed performance on Friday, November 7, 2025, as technology stocks continued to sway the broader market and a record-breaking U.S. government shutdown cast a long shadow over both investor sentiment and the flow of economic data. The S&P 500 managed a modest rebound, closing up 0.13% at 6,728.80, while the Dow Jones Industrial Average inched higher by 74.80 points, or 0.16%, to finish at 46,987.10. The tech-heavy Nasdaq Composite, however, slipped 0.21% to 23,004.54, capping its worst weekly performance since April and reflecting persistent worries about the sector’s lofty valuations and the state of the economy.
Trading on Friday was a rollercoaster. The S&P 500 spent much of the session in the red, down as much as 1.3% at one point, and the Dow tumbled more than 400 points, or roughly 0.9%, before both indexes staged late-day recoveries. The Nasdaq, pressured by losses in artificial intelligence and other high-flying tech stocks, fell as much as 2.1% before trimming its losses by the closing bell. According to CNBC, key AI players like Oracle dropped nearly 2% on the day, while Advanced Micro Devices (AMD) and Broadcom ended the week down nearly 9% and over 5%, respectively.
The week’s turbulence was not confined to the United States. European and Asian markets also posted losses on Friday, with Germany’s DAX down 0.1%, Britain’s FTSE 100 falling 0.4%, and Japan’s Nikkei 225 off 1.2%. In China, exports contracted by 1.1% in October, and shipments to the U.S. plummeted 25% year-over-year—a stark sign of ongoing trade tensions. However, as reported by the Associated Press, economists remain hopeful for a rebound after last week’s agreement between President Donald Trump and Chinese leader Xi Jinping to de-escalate the trade war between the world’s two largest economies.
Technology stocks, which have an outsized influence on the direction of the market, were once again at the center of the action. Alphabet, Google’s parent company, fell 2.1%, and Broadcom dropped 1.7%. Nvidia, Microsoft, and Amazon also dragged on the market, with Nvidia tumbling 3.7%, Microsoft down 2%, and Amazon off 2.9% on Thursday. The focus on artificial intelligence and the rapid ascent of these stocks have fueled both optimism and anxiety about whether current market values are sustainable.
Corporate earnings and forecasts took on even greater significance this week as the government shutdown—now the longest in U.S. history—deprived investors and policymakers of key economic data. More than 90% of S&P 500 companies have reported earnings for the latest quarter, and most have surpassed Wall Street’s expectations, with the tech sector showing the strongest growth, according to FactSet. Standouts included Expedia Group, which surged 17.5% after beating analysts’ forecasts, and exercise-equipment maker Peloton, which jumped 14.2% on better-than-expected results. On the flip side, payments company Block, which operates Square and Cash App, sank 7.7% after missing forecasts, and DoorDash plummeted 17.5% after warning about increased spending on product development for 2026. CarMax shares slumped 24.3% after a disappointing update and the announcement that CEO Bill Nash will step down in December.
Amid the shutdown, the lack of government data has become a serious concern. The Bureau of Labor Statistics was unable to release the nonfarm payrolls report for the second consecutive month, leaving investors flying blind on the state of the job market. Economists had expected October to show a decline of 60,000 jobs and an uptick in unemployment to 4.5%. The only fresh insight came from the University of Michigan’s consumer sentiment report, which revealed a sharp drop to a three-year low—much worse than economists had anticipated. "Consumers are starting to get concerned about the potential effects of the government’s shutdown on economic activity," wrote Eugenio Aleman, chief economist for Raymond James, in a note to investors, as cited by the Associated Press.
Inflation expectations also edged higher, adding to the Federal Reserve’s dilemma. The central bank has already cut its benchmark interest rate twice this year and is widely expected to consider another cut at its December meeting, with the CME FedWatch tool putting the odds at 67%. Yet, with inflation stubbornly above the Fed’s 2% target, any further rate cuts could risk exacerbating price pressures. Treasury yields held steady on Friday, with the 10-year note at 4.09% and the two-year at 3.56%.
The government shutdown’s impact has been felt far beyond Wall Street. Airlines faced significant disruptions as the Federal Aviation Administration began reducing air traffic by 10% across 40 high-volume markets, a move that could affect up to 4,000 flights daily. As of Friday morning, over 700 U.S. flights had already been canceled. Transportation Secretary Sean Duffy explained that the move was necessary due to shortages of air traffic controllers, who have been working without pay since October.
In Washington, there was a glimmer of hope as Senate Minority Leader Chuck Schumer proposed a plan to end the shutdown, offering short-term funding for federal operations in exchange for a one-year extension of enhanced Affordable Care Act tax credits. The Senate was expected to vote Friday on advancing a House-passed stopgap funding measure. But with each passing day, the uncertainty and lack of data have weighed heavily on both investor confidence and economic activity. Leah Bennett, chief investment strategist at Concurrent Asset Management, told CNBC, "No one likes the dark, and we’ve been in the dark for a while as far as government data is concerned, but I think we might further have some behavior being impacted. I think that speaks volumes to why valuations should, at least in the short term, continue to erode."
Despite the week’s losses, some remain cautiously optimistic about the future of the technology and AI sectors. Bennett added, "You have had a bit of a rotation, which has been helpful in the value stocks, which kind of leads me to believe that the sell-off isn’t overly concerning with the ['Magnificent Seven']. This AI rally that we’ve had I think does resume. It’s hard to call the top, but I don’t think we’re at the end of it."
Meanwhile, the broader stock market’s record-setting year has prompted questions about overvaluation, particularly among the tech giants that have led the charge amid an artificial intelligence boom. The coming weeks—especially if the government shutdown drags on—will test whether these valuations can hold up under the weight of uncertainty and missing data.
As the dust settles on a turbulent week, investors, policymakers, and everyday Americans alike are left waiting for clarity—not just from the markets, but from Washington as well. The hope is that a resolution to the shutdown will bring back the data and stability needed to chart a confident path forward.
