Markets Tumble on Weak Jobs and Overvaluation Fears
U.S. equities fell sharply on Thursday as fresh layoff data reignited fears about economic weakness and inflated tech valuations. The Nasdaq Composite slid roughly 2%, while the S&P 500 dropped 1.2% and the Dow Jones Industrial Average lost nearly 500 points.
A new report from Challenger, Gray & Christmas showed October was the worst month for job-cut announcements since 2003, underscoring a deepening slowdown in hiring. The data hit particularly hard given the ongoing federal shutdown, which has delayed official employment statistics and left investors reliant on private indicators.
Bonds rallied as investors sought safety, pushing yields lower — a signal that some expect economic growth to cool further heading into year-end.
Tech Stocks Lead the Decline
High-valuation tech names bore the brunt of Thursday’s sell-off. Qualcomm (QCOM) posted upbeat earnings and guidance, but shares fell over 4% as investors balked at lofty expectations across the semiconductor sector.
Nvidia (NVDA) slipped more than 4%, while AMD (AMD) tumbled 7%, as traders rotated out of megacap chip stocks after a strong run earlier this quarter.
Tesla (TSLA) also declined nearly 5% ahead of its highly anticipated shareholder meeting, where investors are set to vote on Elon Musk’s trillion-dollar compensation package. Market watchers warned that uncertainty around leadership could add further volatility to the stock.
Tariff and Policy Tensions Add to Pressure
Markets also digested fresh developments in Washington as Supreme Court justices signaled skepticism over the legality of broad trade tariffs — a case with significant implications for U.S. trade policy. A ruling against the measure could unwind portions of the tariffs and alter import costs across industries.
At the same time, Treasury Secretary Scott Bessent maintained an optimistic tone about potential resolutions, though investors remained cautious amid uncertainty over fiscal policy and the record-breaking shutdown.
Earnings in Focus
Thursday’s earnings lineup featured results from Warner Bros. Discovery (WBD), Airbnb (ABNB), and Moderna (MRNA) — each offering insight into consumer spending, travel trends, and biotech investment appetite.
Despite scattered beats, sentiment across the broader market remained fragile as traders continued to weigh growth risks against high equity valuations.
WSA Take
Markets are flashing warning signs as weak labor data collides with overextended tech valuations. While corporate earnings have held steady, investors are becoming more selective — signaling a shift from momentum-driven gains to fundamental risk assessment.
Short-term volatility could rise ahead of Tesla’s shareholder vote and next week’s inflation data, as markets test whether the recent pullback marks a correction or a reset.
Read our recent coverage on ESPN’s new DraftKings partnership.
Explore more updates on the Wall Street Access homepage.
Disclaimer:
Wall Street Access does not work with or receive compensation from any public companies mentioned. Content is for informational and educational purposes only.
