Tech Sell-Off Deepens as Wall Street Closes Mixed Session

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•  07 Nov 2025
 

•   ABNB  
   
  +0.59%
•   EXPE  
   
  -1.08%
•   GOOGL  
   
  +0.25%
•   META  
   
  +0.83%
•   NVDA  
   
  +1.40%

Wall Street wrapped up another volatile session in mixed territory on Friday, with investors caught between mounting concerns over stretched valuations and cautious optimism about a potential December rate cut. The Nasdaq slipped 0.2% while the S&P 500 and Dow Jones both managed modest gains of 0.1% and 0.2% respectively, marking yet another day where technology stocks bore the brunt of the selling pressure.

For anyone holding $NVDA or $TSLA right now, the pain is real. Nvidia continued its weeklong slide, down roughly 7% over the past five trading days, as questions about China exposure and return on AI investments continue to weigh on sentiment. Tesla $TSLA dropped another 3.7% despite shareholders overwhelmingly approving Elon Musk's compensation package that could potentially be worth over a trillion dollars if the company hits specific performance targets. Musk had threatened to leave if the proposal wasn't approved, but after getting the green light, he simply said he "appreciates the support wholeheartedly" The market's reaction suggests investors are more focused on execution than promises.

The backdrop for this selloff goes beyond individual company concerns. The federal government shutdown, now stretching into its 38th day, is starting to leave visible scars on the economy. We would have received jobs data today if the government were functioning normally. Instead, traders are flying blind through one of the most important economic data releases of the month. Senate Majority Leader John Thune proposed a vote on a temporary resolution to reopen the government through January, but until that happens, uncertainty reigns.

The impact is becoming impossible to ignore. A report released Thursday showed approximately 153,000 layoffs in October alone, a staggering 183% increase from September and 175% higher than October 2024. It's the highest October layoff figure in 22 years and the worst pace since the 2009 financial crisis. Then there's the aviation chaos: major airlines including American, United, Delta, and Southwest canceled around 700 flights on Sunday due to an acute shortage of air traffic controllers caused by the shutdown. The FAA reduced operations at 40 major airports by 4%, and without a resolution, those cuts will only expand.

Consumer confidence is cratering too. The University of Michigan consumer sentiment index fell to 50.3 in November from 53.6 in October, approaching the 2022 lows during the worst inflation spike in four decades. People are worried, and rightfully so.

Yet amid the gloom, there are pockets of strength that remind us markets are never one-dimensional. $JFROG absolutely soared 27% after delivering strong third-quarter results and raising guidance for both the next quarter and full year. $EXPE jumped 17.6% after updating revenue and gross bookings forecasts higher, reporting an 11% increase in booked nights and a 12% jump in total bookings for Q3. The travel sector is showing real resilience.

$ABNB also posted impressive numbers with third-quarter revenue climbing 10% to $4.1 billion, beating analyst expectations. The company guidance for Q4 revenue between $2.66 billion and $2.72 billion came in above market forecasts, suggesting the appetite for alternative accommodations remains robust, particularly in rural areas and remote destinations.

On the flip side, $BLCK plunged 7.7% after reporting adjusted earnings of just 54 cents per share against expectations of 68 cents, with revenue of $6.11 billion also missing targets. The fintech space is getting more competitive, and Block is feeling the squeeze with margin compression and dimming near-term profitability expectations.

Two Federal Reserve officials offered contrasting views on monetary policy, though both ultimately supported a December rate cut. Fed Governor Steven Miran said he expects the central bank to lower rates in December "unless there's some kind of surprise" acknowledging that while not everyone around the table agrees, the current data supports a cut. His colleague Philip Jefferson urged a more cautious, gradual approach given the lack of official economic data due to the shutdown, though he too supported last week 0.25% rate reduction and noted rising unemployment risks.

Bitcoin managed to regain some composure, climbing 1.9% to cross $103,000, while Ethereum rallied 3.9% toward $3,500. Gold pushed back above $4,000, up 0.6%, as investors sought safe havens. The 10-year Treasury yield ticked up just one basis point, reflecting the market conflicted stance on where things go from here.

What's becoming clear is that we're in a period where stock picking matters more than ever. The broad rally that lifted all boats has given way to a market that's ruthlessly separating winners from losers. Mega-cap tech stocks like $GOOGL (down 2.1%) and $META are no longer immune to scrutiny. Meanwhile, companies delivering genuine growth and beating expectations, even in challenging sectors, are being rewarded.

The question facing every investor right now is whether this correction represents a healthy pause after an extended rally or the beginning of something more serious. With the government shutdown dragging on, layoffs accelerating, and consumer confidence deteriorating, the macroeconomic picture is undeniably darkening. Yet rate cuts are coming, corporate earnings in many sectors remain solid, and valuations are becoming more reasonable after the tech giants' pullback.

For those sitting on cash, this volatility might actually be creating opportunities. For those fully invested, particularly in tech, it's a moment that tests conviction. The market has a way of humbling everyone eventually, and right now it's reminding us that no trend lasts forever and risk management always matters. Whether you're looking at the wreckage in $NVDA or the breakout in $JFROG, the lesson is the same: in markets like these, the difference between winning and losing often comes down to which stories you believe and how much patience you have to see them through.

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