U.S. stocks faced a notable downturn on Thursday, weighed down by renewed pressure on artificial intelligence-related stocks amid persistent concerns over their soaring valuations. The S&P 500 dipped by 0.9%, while the Nasdaq Composite fell 1.5%. The Dow Jones Industrial Average also retreated, losing 364 points, or about 0.8%.
This decline was amplified by alarming developments in the labor market, with October witnessing a staggering 153,074 layoffs, according to figures from Challenger, Gray & Christmas. This number represents an increase of 183% compared to September and a 175% rise from the same month last year, marking the highest October layoffs in two decades. Notably, 2025 is shaping up to be the worst year for job cuts since 2009.
In the trading session, Wall Street kept a close eye on AI stocks, which continued to dominate headlines. Despite posting better-than-expected quarterly results, Qualcomm’s shares dropped by 4%. Advanced Micro Devices (AMD), which had previously been a shining star, saw its stock decline by 7%. Palantir Technologies and Oracle followed suit, with dips of 3% and 4% respectively. Shares of Nvidia and Meta Platforms, both part of the “Magnificent Seven,” also experienced a decline.
In contrast, Marvell Technology stood out as a bright spot; its shares increased by nearly 1% following news that SoftBank had explored a potential acquisition of the chipmaker. Earlier in the week, AI stocks had shown signs of recovery, rebounding from valuation concerns. AMD had rallied over 2% the prior session after exceeding third-quarter earnings expectations, subsequently lifting other AI stocks like Broadcom and Micron Technology, which rose 2% and 9%, respectively. Oracle also managed to recover some of its recent losses during the session.
The resurgence of AI stocks provided a brief glimmer of hope for the market on Wednesday, helping major indexes rally despite a sluggish week that saw all three major U.S. indexes in the red. “We’re still very early in the AI super-cycle,” Shirl Penney of Dynasty Financial Partners stated during an appearance on CNBC’s “Closing Bell.” He emphasized the likelihood of continued significant capital expenditures from major players, not just among the “Magnificent Seven,” but also among large financial institutions, including Schwab and JPMorgan.
Investors were also focused on developments in Washington, where the Supreme Court reviewed arguments on the legality of tariffs imposed by the Trump administration. Analysts increasingly expect the Court to challenge these aggressive trade policies, especially after justices voiced skepticism regarding the legality of the trade taxes during Wednesday’s hearings. A ruling against the Trump administration could lead to a rollback of tariffs, potentially boosting stock prices across various sectors.
As the market navigates these turbulent waters of layoffs, trade policy uncertainty, and AI stock fluctuations, investors remain vigilant for signs of stabilization and growth in the coming weeks.
Original Source: https://www.cnbc.com/2025/11/05/stock-market-today-live-updates.html
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Publish Date: 2025-11-06 21:19:00
