A trader works during the Evommune Inc. initial public offering (IPO) at the New York Stock Exchange (NYSE) in New York, US, on Thursday, Nov. 6, 2025.
Michael Nagle| Bloomberg | Getty Images
Stocks moved lower Friday as technology stocks continued to struggle, putting the major averages on pace for a losing week.
The S&P 500 lost 1%, while the Nasdaq Composite shed 1.7%. The Dow Jones Industrial Average dropped 200 points, or 0.4%.
Nvidia shares were down 3%, putting their weekly losses at 10%. Fellow leading artificial intelligence player Oracle fell 3% and was on track for 10% decline on the week as well. Palantir Technologies, down 14% on the week, and Broadcom, off by 7% this week, were also lower.
Key AI leaders lost steam on Thursday, with Nvidia, Advanced Micro Devices, Tesla and Microsoft posting significant declines that weighed on the broader market. The drop in stocks was also exacerbated by data reflecting job cuts for October hit the highest level for the month in more than two decades, making 2025 the worst year for layoffs since 2009.
Major U.S. stock averages closed lower across the board in the previous session, with the tech-heavy Nasdaq Composite notably dropping 1.9% and the 30-stock Dow closing lower by almost 400 points.
The three benchmark indices are each in the red this week, with losses accumulating on-and-off since Tuesday when major AI names declined on fears about elevated tech sector valuations — which have also contributed to a highly concentrated market. The S&P 500 is down more than 2% week to date, while the 30-stock Dow Jones Industrial Average and Nasdaq have lost more than 1% and around 4% during the period, respectively.
To be sure, some market participants remain hopeful that an end to the lengthy U.S. government shutdown and a potential December interest rate cut from the Federal Reserve could alleviate the pain in U.S. stocks. Investors are also monitoring the Supreme Court’s skepticism about the legality of President Donald Trump’s far-reaching tariffs and how third-quarter corporate earnings results are progressing.
“There’s still hope for a year-end rally once the government shutdown ends and the tariff situation is resolved. We are still two weeks from the very important Nvidia earnings, and strength there might be the catalyst to reaffirm the AI narrative. If that is followed by a December Fed cut, we may still go out on a high at year’s end,” Louis Navellier, founder and chief investment officer at Navellier & Associates, said. “Corrections with these levels of gains are normal and to be expected, not something to panic over.”
Concerns among investors around the strength of the U.S. economy came into view this week. A survey from the University of Michigan revealed Friday that consumer sentiment has neared its lowest level ever. The data comes just a day after firm Challenger, Gray & Christmas reported that layoff announcements in October reached their highest level for the month in 22 years.
Because of the record-breaking government shutdown, investors have been getting little on the economic data front. The Bureau of Labor Statistics normally would release the nonfarm payrolls report Friday. For the second month in a row, however, it is unable to do so because of the stoppage. Economists surveyed by Dow Jones had been expecting the report to show a decline of 60,000 jobs and an increase in the unemployment rate to 4.5%.
The Senate is expected to vote Friday on advancing a House-passed stopgap funding measure. The longest-ever federal funding lapse has caused major flight disruptions as air traffic controllers, who have been working without pay during the ongoing shutdown, face staffing shortages. Transportation Secretary Sean Duffy said Wednesday that he will be cutting flights by 10% at 40 major airports starting Friday, a move that could affect 3,500 to 4,000 flights daily. As of Friday morning, more than 700 U.S. flights had already been canceled.
