Wall Street loses ground under the weight of falling technology stocks
[November 07, 2025] By
DAMIAN J. TROISE
NEW YORK (AP) — Wall Street lost ground Thursday as influential
technology stocks fell and once again steered the broader market.
The technology sector has been the driving force behind the market’s
direction, whether up or down, all week. Thursday’s losses pushed nearly
every major index solidly into weekly losses. If that momentum holds on
Friday, it would break a three-week winning streak for the S&P 500, the
Dow Jones Industrial Average and the Nasdaq composite.
The S&P 500 fell 75.97 points, or 1.1%, to 6,720.32. The Dow fell 398.70
points, or 0.8%, to 46,912.30. The Nasdaq fell 445.80 points, or 1.9%,
to 23,053.99.
The biggest weights on the market included Nvidia, which fell 3.7%, and
Microsoft, which fell 2%. Their huge values give them outsized influence
over the market's direction. Other big stocks dragging down the market
included Amazon, which slumped 2.9%.
Corporate earnings and forecasts remained the big focus for Wall Street
on Thursday. The latest round of results and statements from executives
could help shed some light on the condition and path ahead for the
economy amid a lack of broader information on inflation, employment and
retail sales because of the ongoing government shutdown.
DoorDash sank 17.5% for one of the sharpest drops on Wall Street. The
food delivery app warned investors that it will be spending
significantly more on product development next year.
CarMax slumped 24.3% after giving investors a disappointing financial
update and announcing that CEO Bill Nash is stepping down in December.
Software company Datadog jumped 23.1% after its latest earnings beat
analysts' forecasts. Rockwell Automation rose 2.7% after turning in
results that easily beat analysts’ forecasts.
It has been a wobbly week for major indexes, which set record highs last
week. The broader stock market has had a record-setting year, but that
has raised worries that stocks could be overvalued. Those concerns are
even more focused on big technology companies that have been leading the
market higher amid the focus on artificial intelligence advancements.
The latest round of earnings is being closely monitored to gauge whether
the stock market’s big values are justified. The results are also
helping to fill in gaps in information because of the U.S. government
shutdown, which is now the longest on record.
Another week of unemployment data was missing Thursday because of the
shutdown. It has already resulted in a lack of monthly employment data
for September and will likely result in missing employment data for
October, along with a lack of data on consumer prices for October.
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Trader James Conti works on the floor of the New York Stock
Exchange, Thursday, Nov. 6, 2025. (AP Photo/Richard Drew)
 Outside of company updates, Wall
Street is relying more on economic updates from other private
sources. Private payrolls rose more than expected in October,
according to a report Wednesday from ADP, and the services sector
expanded in October, according to the Institute for Supply
Management. The data can vary widely, however.
Job cuts in the U.S. surged 175% in October from a year ago,
according to a report released Thursday from outplacement firm
Challenger, Gray & Christmas. The reasons include softer consumer
and corporate spending, rising costs, and the adoption of artificial
intelligence.
The absence of updates on the job market and inflation has left the
Federal Reserve in the dark at the same time that employment was
weakening and inflation heating up. That leaves the central bank in
a tough spot. It has to decide whether cutting its benchmark
interest rate to counter the economic impact from a weaker job
market is worth the risk of worsening inflation.
Lower interest rates can help stimulate the economy by making loans
less expensive, but they can also fuel inflation.
“We anticipate the Fed will continue to implement rate cuts to
prevent any weakness in employment from accelerating,” said Seema
Shah, chief global strategist at Principal Asset Management. “Much
of the market’s optimism hinges on the assumption that policymakers
will maintain some level of support.”
The Fed has already cut its benchmark interest rate twice this year.
It has signaled more caution as it tries to navigate the risks to
the economy. Wall Street is forecasting a 71% chance that the
central bank cuts interest rates in December, according to CME
FedWatch. That's down from more than 90% just prior to the most
recent interest rate cut.
The U.S. government shutdown is having a direct impact on airlines,
as airports face critical staffing problems. The Federal Aviation
Administration will reduce air traffic by 10% starting Friday across
40 “high-volume” markets. American Airlines fell 2%, Delta Air Lines
fell 1.2% and United Airlines fell 1%.
European markets fell after a divided Bank of England kept its main
interest rate unchanged. Asian markets closed higher.
Treasury yields moved lower in the bond market. The yield on the
10-year Treasury fell to 4.09% from 4.16% late Wednesday. The yield
on the two-year Treasury fell to 3.56% from 3.63% late Wednesday.
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