- Major US indices, including the Dow, S&P 500, and Nasdaq, experienced a steep slide, with the tech sector leading the losses.
- A sell-off in AI-related chip stocks like Nvidia and AMD intensified after comments from a Trump administration official ruled out a federal bailout for the AI industry.
- Worsening economic fears were fueled by a report showing October had the most layoff announcements since 2003, causing investors to flee to the safety of bonds.
- Significant uncertainty around Tesla’s vote on Elon Musk’s pay package and a Supreme Court review of trade tariffs added to market anxiety.
US Stocks Tumble Amid Tech and Economic Worries
Wall Street saw a significant downturn on Thursday as US stocks resumed a steep slide, driven by mounting concerns over Big Tech valuations and troubling economic signals. The tech-heavy Nasdaq Composite (^IXIC) led the charge lower with a nearly 2% drop, while the S&P 500 (^GSPC) fell 1.1%, and the Dow Jones Industrial Average (^DJI) sank approximately 0.8%, shedding almost 400 points.
AI and Big Tech Lead the Retreat
The core of the market’s anxiety stemmed from the high-flying tech sector. Chipmaker stocks, which have been central to the AI boom, faced intense pressure. Even after Qualcomm (QCOM) posted strong earnings and optimistic guidance, its stock slid over 4%, signaling widespread investor apprehension about lofty valuations.
The sell-off accelerated for megacap chip giants like Nvidia (NVDA) and AMD (AMD). The decline followed comments from David Sacks, the Trump administration’s AI and crypto czar, who stated there would be “no federal bailout” for the artificial intelligence industry. This declaration came after speculation about a potential federal backstop for new chip investments, which was later refuted by OpenAI CEO Sam Altman.
There will be no federal bailout for the AI industry.
— David Sacks (@DavidSacks) November 7, 2025
Job Market Jitters and Corporate Headwinds
Worst Layoff Report in Two Decades
Adding to the bearish sentiment, a sobering report from the global outplacement firm Challenger, Gray & Christmas revealed that October 2025 was the worst month for layoff announcements since 2003. This grim data sparked immediate fears of an economic slowdown, prompting a flight to safety in the bond market. Consequently, the benchmark 10-year Treasury yield (^TNX) dipped below 4.1% as investors sought refuge from market volatility.
Tesla and Tariffs Add to Uncertainty
Investors also kept a close watch on two major developing stories. Tesla (TSLA) shares fell 3.5% ahead of a crucial shareholder meeting to vote on CEO Elon Musk’s controversial trillion-dollar pay package. The outcome has fueled speculation, with many worried Musk could step down if the plan is rejected.
Meanwhile, in Washington, skepticism from several Supreme Court justices regarding the legality of sweeping Trump-era trade tariffs created further unease. A ruling against the policy could unwind the duties, causing a massive ripple effect across international trade and domestic markets.
Amid this backdrop, earnings reports from major companies like Warner Bros. Discovery (WBD), Airbnb (ABNB), and Moderna (MRNA) were also closely scrutinized by a market searching for firm direction in a highly volatile week.