Traders at work at the New York Stock Exchange on October 28, 2025.
new york stock exchange
U.S. stocks fell on Thursday as companies that have benefited from artificial intelligence trade came under renewed pressure on concerns about eye-watering valuations.
of Dow Jones Industrial Average It fell 398.70 points (0.84%) to close at 46,912.30. of S&P500 It fell 1.12% to settle at 6,720.32. Nasdaq Composite It fell 1.9% to end at 23,053.99. of Nasdaq 100 The stock is down more than 2% from last Friday’s close, its worst weekly pace since early April. The biggest downside impacts are: Nvidia, microsoft, Palantir Technologies, broadcom and Advanced microdevices.
AI stock has had an uneven run since early November, and that continued in Thursday’s trading. Qualcomm Shares fell nearly 4% after the chipmaker reported better-than-expected quarterly results but said it could lose future business with Apple. AMD, which was a standout on Wednesday, fell 7%, while Palantir and oracle They decreased by nearly 7% and 3%, respectively. AI darling Nvidia and fellow ‘Magnificent Seven’ name shares meta platform It also sank.
“From a valuation standpoint, a lot of this stuff was very expensive and priced to perfection,” said Mike Muscio, president of FBB Capital Partners. “So you’re seeing a bit of a dichotomy in the market between companies that are raising above earnings and companies that are maybe outperforming on the top line but are showing a lukewarm outlook from a bottom-line and operating income standpoint.” “This is the difference between some companies’ earnings increasing by double digits and declining by double digits, with not much difference in between.”
Thursday’s pullback was further exacerbated by concerns about the state of the labor market, following a significant number of layoff announcements in October. Challenger Gray & Christmas said layoffs for the month totaled more than 153,000 jobs, nearly triple the number in September and an increase of 175% from a year earlier. This was the highest level for October in 22 years, which is shaping up to be the worst layoffs since 2009.
The data suddenly highlighted the precarious state of the U.S. economy, especially given the lack of economic reporting as a result of the ongoing U.S. government shutdown, which has now lasted more than a month and is the longest in history.
“Economic indicators are starting to come out piecemeal… It’s not government-related and it’s not all that rosy,” Muscio said, adding: “All this is just setting the stage for weakness in the market.” That doesn’t necessarily mean “this is the beginning of a big slide or something,” he continued. The investment manager believes a typical year-end rebound could occur if the government reopens and data shows consumers are “not really dead” as the holiday season progresses.
All three major US indexes have been firmly in negative territory since the beginning of the week. As of Thursday’s close, the Dow Jones Industrial Average was on pace to decline 1.4%, while the S&P 500 index was down 1.8%. The tech-heavy Nasdaq fell 2.8% this week.
Investors also had their eyes on Washington on Thursday, after the Supreme Court heard arguments for and against the Trump administration’s tariff policies. In Wednesday’s hearing, the High Court judges expressed some skepticism about the legality of the trade tax, and many investors are expecting a ruling on the tariff.
