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Nasdaq Drops 400 Points Amid Tech Selloff and Job Layoff Woes

Nasdaq slips nearly 2% amid tech stock sell-off and record October layoffs as investors pivot to bonds

  • The Nasdaq index dropped nearly 2%, led by significant declines in major tech stocks.
  • Layoff announcements in October 2025 hit a 20-year high, affecting companies like Amazon and Meta.
  • Chipmakers, including AMD and NVIDIA, experienced sharp declines despite mixed earnings reports.
  • Investment preference is shifting toward bonds due to attractive yields and economic concerns.

On Thursday, U.S. stock markets fell, with the Nasdaq (^IXIC) leading losses by dropping about 400 points, nearly 2%. The decline stemmed primarily from a dip in technology stocks, including notable companies such as Tesla, Nvidia, and Amazon. Semiconductor manufacturers also suffered, with Advanced Micro Devices (AMD) sliding 6.3% and Palantir (PLTR) down 5.5%.

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The market downturn followed the release of private jobs data indicating October 2025 had the worst month for layoff announcements since 2003. According to a report from Challenger, Gray & Christmas, major companies like Amazon and Meta reduced their workforce to allocate resources toward Artificial Intelligence (AI) development.

The AI sector showed uneven performance early in November, continuing on Thursday. Chipmaker Qualcomm fell 3% despite exceeding quarterly expectations, citing potential future revenue losses with Apple. AMD dropped 6%, while Oracle declined 2%. Although some AI stocks briefly supported market gains, the three main U.S. stock indexes remain down for the week, with the largest losses occurring earlier on Tuesday.

In response to the market volatility and economic uncertainty, some investors are shifting toward bonds, which offer fixed income with potential stability during economic slowdowns. “With yields still attractive and likely to fall, we continue to believe that quality fixed income offers an appealing combination of income and the potential to perform well in the event of slowing economic activity and further rate cuts,” stated Ulrike Hoffmann-Burchardi, global head of equities at UBS Global Wealth Management.

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