WEEKLY MARKET RECAP – NOVEMBER 7, 2025

The large technology stocks that propelled major U.S. indexes higher the previous week reversed course, leading a broad market decline as investors grew more cautious about the outlook for artificial intelligence. The NASDAQ suffered the steepest drop, falling 3.0% for the week, while the S&P 500 and Dow declined 1.6% and 1.2%, respectively.

With the U.S. government shutdown entering its sixth week, the absence of the monthly jobs report left investors without key labor-market data. However, a private survey provided some insight into ongoing weakness: consulting firm Challenger, Gray & Christmas reported 153,000 job cuts in October—nearly triple the number recorded in September.

Despite market losses, corporate earnings continued to support the market. As of Friday, 91% of S&P 500 companies had reported third-quarter results, with 82% exceeding analysts’ estimates, according to FactSet. That marks the highest earnings beat rate in four years, well above the 10-year average of 75%.

U.S. consumer confidence weakened sharply. The University of Michigan’s preliminary November reading of its Consumer Sentiment Index fell to 50.3 from 53.6 in October—the lowest level in over three years. Respondents cited growing concerns about the prolonged government shutdown and its economic effects. Just a few months ago, in July, the index stood at 61.7.

On the policy front, the U.S. Supreme Court heard arguments Wednesday in a case challenging the legal authority the Trump administration used to impose tariffs earlier this year. The justices did not indicate when a ruling might come, leaving an additional layer of uncertainty for markets and businesses.

Volatility picked up modestly. The Cboe Volatility Index (VIX) briefly spiked to a three-week high midday Friday before retreating, finishing the week about 10% higher overall. Even so, it remains far below April’s elevated levels, when tariff concerns drove a surge in market anxiety.

Small-cap stocks continued to underperform their larger counterparts. The Russell 2000 Index fell 1.9% for the week, extending its two-week decline to 3.3% and widening its year-to-date lag behind large-cap benchmarks.