US stock market today: Nasdaq dropped 1.9%, S&P 500 lost 1.1%, Dow slipped 0.8% — What led to Wall Street turning red and why Tesla, Nvidia, Amazon, and Palantir sank
Looks like Wall Street caught a serious case of AI fatigue, dragging tech giants like Tesla, Nvidia, Amazon, and Palantir down into the red zone. After months of bullish hype fueled by artificial intelligence breakthroughs, investors are finally hitting the brakes as earnings failed to meet sky-high expectations. Toss in the ongoing US government shutdown and the highest October job cuts since 2003, and you get the perfect storm to scare off exuberant bids and pull indices like Nasdaq, S&P 500, and Dow deep into the red.
On November 7, 2025, the US stock market experienced a notable sell-off with the Nasdaq dropping 1.9%, S&P 500 losing 1.1%, and Dow Jones slipping 0.8%. This decline was driven by concerns over stretched valuations in the AI sector amid weak private labor data showing 153,074 job cuts in October—the highest for that month in over two decades. Tesla, Nvidia, Amazon, and Palantir saw significant share price declines, wiping billions off market value. Additionally, the government shutdown limited economic data availability, heightening market uncertainty, while Treasury yields softened and the US dollar weakened, reflecting cautious investor sentiment. This marks a reversal of earlier gains, indicating volatility tied to economic and geopolitical factors impacting big tech and the broader market alike.
