Tech Stocks Drag Markets Lower: Nasdaq Heads for Steep Weekly Loss as AI Giants Slide

U.S. stocks extended their declines on Friday as major technology and artificial intelligence (AI) players continued to tumble, putting Wall Street on track for a losing week.

The S&P 500 slipped 0.7%, the Nasdaq Composite dropped 1.3%, and the Dow Jones Industrial Average fell 158 points or 0.4%.

📉 Tech Stocks Under Pressure

Leading AI and tech companies once again weighed heavily on the market. Nvidia shares slid over 2%, extending their weekly losses to more than 9%. Oracle fell more than 3%, bringing its weekly decline to nearly 10%. Palantir Technologies dropped 14% for the week, while Broadcom was down 5%.

Thursday’s sharp losses in Nvidia, Advanced Micro Devices (AMD), Tesla, and Microsoft further intensified selling pressure across the tech sector. The slump came amid data showing that October job cuts hit their highest level in over two decades, making 2025 the worst year for layoffs since 2009.

🧾 Weekly Market Overview

All three major indexes are set to finish the week in the red. The S&P 500 has fallen 2.3%, the Dow Jones is down 1.9%, and the Nasdaq Composite has shed 3.6% so far this week.

The declines began earlier in the week as investors grew cautious about elevated tech valuations and the high concentration of market gains in a few AI-driven stocks.

💬 Analysts Still Hopeful for Year-End Rally

Despite the selloff, some market experts remain optimistic.

“There’s still hope for a year-end rally once the government shutdown ends and the tariff situation is resolved,” said Louis Navellier, Founder and Chief Investment Officer at Navellier & Associates. “Corrections at these levels are normal and not something to panic over. Strong Nvidia earnings or a December rate cut from the Fed could spark a rebound.”

🏛️ Shutdown and Economic Data Delays

The record-holding U. S. government shutdown has stopped important economic data releases, preventing the Bureau of Labor Statistics from publishing the nonfarm payrolls for the second time in a row. Economists had expected the report to show a loss of 60,000 jobs and an increase in the unemployment rate to 4.5%.

The Senate will vote on Friday on the stopgap funding bill that has already passed the House, with Senate Majority Leader John Thune expressing cautious optimism about bipartisan support.

✈️ Shutdown Impact: Flights Cut Nationwide

The prolonged shutdown is also hitting air travel hard. Transportation Secretary Sean Duffy announced a 10% cut in flights at 40 major airports starting Friday due to staffing shortages among unpaid air traffic controllers. The move could impact up to 4,000 flights daily, with more than 700 cancellations already reported by Friday morning.

🚀 Premarket Movers: Airbnb, Affirm, Opendoor in Focus

Ahead of Friday’s session, several stocks made notable moves:

Airbnb gained 4% after reporting better-than-expected Q3 revenue and raising its Q4 outlook, despite missing earnings estimates.

Affirm surged 10% following stronger Q3 results and upbeat sales guidance.

Opendoor plunged 23% as its quarterly sales dropped over 30%. The company’s new CEO pledged a strategic shift, describing plans to “refound Opendoor as a software and AI company.”