US stocks experienced a significant decline on Thursday, primarily due to persistent concerns surrounding Big Tech and disappointing private sector job data revealing a challenging month for layoffs in October. The stock market’s downward trend was led by the Nasdaq Composite, which fell nearly 2%. The S&P 500 lost 1.1%, while the Dow Jones Industrial Average dropped approximately 0.8%, translating to nearly 400 points.
The bearish job statistics were fueled by a report from the global outplacement firm Challenger, Gray & Christmas, which indicated that October marked the highest number of layoff announcements since 2003. This news triggered a rush towards bonds, resulting in the benchmark 10-year Treasury yield dipping below 4.1%.
Investor sentiment regarding tech valuations remained jittery. Chipmaker Qualcomm reported strong earnings and positive guidance after hours, yet its stock still fell over 4%, indicating disappointment among investors. Other major chip manufacturers, including Nvidia and AMD, also saw their shares decline after comments from David Sacks, the Trump administration’s AI and crypto czar, stated that there would be “no federal bailout” for the artificial intelligence industry. This statement came after OpenAI’s CFO hinted at potential federal support for new chip investments, which was later contradicted by OpenAI CEO Sam Altman.
Additionally, attention turned to Tesla’s upcoming shareholder meeting, scheduled for 4 p.m. ET, where a crucial vote regarding Elon Musk’s proposed trillion-dollar pay package would take place. Concerns are mounting that Musk may resign as CEO if the package is not approved, which contributed to a 3.5% drop in Tesla shares on Thursday.
Market participants were also captivated by comments from several Supreme Court justices regarding the legality of the Trump administration’s broad trade tariffs. Despite Treasury Secretary Scott Bessent’s optimistic outlook, skepticism from the justices could lead to a ruling that may roll back tariffs, significantly impacting both international trade dynamics and domestic consumer spending.
On the earnings front, the day featured notable results from companies including Warner Bros. Discovery, Airbnb, and Moderna, which drew investor interest amid the prevailing market volatility.