Wall Street Plummets Amid Tech Stock Selloff and U.S. Government Shutdown

NEW YORK, NY – Wall Street opened with a shudder on Friday, November 7, 2025, as uncertainty swept through global financial markets. The S&P 500 slipped about 0.5%, the Nasdaq dropped 0.8%, and the Dow slid roughly 190 points, or 0.4%—all three major indices on track for a down week.

The primary drivers of this downturn included a broad selloff in heavyweight technology stocks, growing concerns over artificial intelligence valuations, and an ongoing U.S. government shutdown that has left policymakers flying blind. Major tech players like Nvidia, AMD, Microsoft, and Palantir Technologies led the charge downward.

Thursday proved particularly brutal: Nvidia lost 3.7%, Advanced Micro Devices plunged 7.3%, and Palantir dropped 6.8%, resulting in a loss of billions in market value. This trend continued into Friday’s session, with S&P 500 futures down 0.3%, Nasdaq 100 futures falling 0.4%, and Dow futures declining 0.3% in pre-market trading.

According to The Daily Upside, the selloff extended beyond U.S. borders. In Asia, Japan’s Nikkei 225 tumbled 1.19%, South Korea’s Kospi fell 1.81%, and Australia’s S&P/ASX 200 dropped 0.66%. AI-related stocks also suffered globally: SoftBank in Japan closed down 6.87%, Advantest lost 5.54%, and South Korea’s Samsung Electronics and SK Hynix fell by 1.31% and 2.19%, respectively.

The overall market mood was summed up by a vast number of losing stocks compared to winners, leading many analysts to deem it a “rough day for the market.” Labor market worries added to the anxiety, as new data showed the highest job cuts for any October since 2003, coupled with a rise in unemployment.

These mixed signals left investors confused—and the Federal Reserve with less clarity ahead of a crucial December interest rate decision. The 38-day government shutdown, the longest in U.S. history, has deepened the data void, leaving policymakers and traders navigating in the dark.

“The bigger concern is that without official economic data, the Fed has less information to make its December interest rate decision,” noted Invezz. Analysts hope for a potential rate cut in December, which, along with resolution of the shutdown and tariff issues, could ignite a year-end rally.

As concerns over AI valuations mount, investors question whether the growth story for artificial intelligence justifies the high prices attached to companies like Nvidia and AMD. “Artificial intelligence valuations have become the central concern,” one Wall Street observer stated.

In bright news, Tesla’s stock climbed 0.7% in early trading on Friday, after shareholders approved Elon Musk’s $1 trillion compensation package with a 75% vote in favor, indicating investor confidence in Musk’s vision for AI and robotics.

Looking ahead, all eyes are on Nvidia’s upcoming earnings report scheduled for November 19, 2025. Wall Street anticipates adjusted earnings per share of $1.25—a 54% year-over-year increase. Any miss or disappointing guidance could further harm tech stocks and the overall market.

Meanwhile, global economic concerns grow. China reported a 1.1% drop in October exports year over year, alongside weak domestic demand and rising job insecurity. These issues could hinder international trade and supply chains.

Back in Washington, the government shutdown remains a wild card, with Senate Republicans proposing a plan to extend the funding deadline beyond November 21. The longer the shutdown continues, the greater the risks to the economy and the less clarity investors will have.

Despite the overarching negativity, there are glimmers of good news, such as Datadog’s surge on positive guidance. However, profit warnings and uncertainty dominate the headlines, with many market participants bracing for more volatility ahead.