Stock Market Today - Nasdaq Plunges 3% as AI Selloff Hits Nvidia and Tesla; Gold Holds $4,009, Oil Rebounds

The U.S. stock market ended a turbulent week with broad losses as the Nasdaq Composite (^IXIC) recorded its sharpest decline since April, dropping 3.0% to 23,004.54, while the S&P 500 (^GSPC) fell 1.6% and the Dow Jones Industrial Average (^DJI) lost 1.2%. Despite the selloff, all three indexes rebounded late Friday, closing above their 50-day moving averages, a critical line that traders use to gauge near-term momentum. Weak consumer sentiment and persistent concern over the artificial intelligence spending boom dominated the week’s narrative. The University of Michigan sentiment index collapsed to 50.3, marking its lowest level since 2022, down nearly 30% year-over-year, as Americans cited financial stress from the ongoing government shutdown, now the longest in U.S. history. The Cboe Volatility Index (VIX) surged toward 20, reflecting heightened market anxiety.

Tech Rout: “Magnificent Seven” Under Pressure as Nvidia and Tesla Lead Losses

The market’s heaviest drag came from the “Magnificent Seven” mega-cap techs — Nvidia (NVDA), Tesla (TSLA), Meta Platforms (META), Microsoft (MSFT), Amazon (AMZN), Alphabet (GOOG), and Apple (AAPL) — which together erased hundreds of billions in market value. Nvidia (NVDA) tumbled 9.5% for the week to $188.25, its sharpest fall in months, after CEO Jensen Huang warned that the U.S. risks “losing the AI race to China.” The stock remains the top component in the VanEck Semiconductor ETF (SMH), which dropped 4.1% but held above its 50-day line. Tesla (TSLA) slid 3.7% to $429.52 after shareholders approved Elon Musk’s $1 trillion pay package, making it the largest in corporate history. Musk announced plans for a “gigantic chip fab” and hinted at potential collaboration with Intel (INTC), which rallied 2.4% to $38.13 on the comments. Meta Platforms (META) lost 1% amid reports that as much as 10% of its 2024 revenue — roughly $16 billion — may have stemmed from scam-related ads. The company simultaneously pledged $600 billion in U.S. AI infrastructure investments over three years. Microsoft (MSFT) and Amazon (AMZN) each declined over 1%, Alphabet (GOOG) dipped 1.2%, while Apple (AAPL) eked out a 0.2% weekly gain, the only bright spot in Big Tech. Chip rivals Advanced Micro Devices (AMD) and Broadcom (AVGO) slumped 9% and 5%, respectively, as traders questioned whether AI hardware demand could sustain 2025’s explosive ramp-up.

Energy and Industrials Provide Support as Oil Prices Stabilize

The Energy Select Sector SPDR Fund (XLE) rose 1.6%, supported by Valero Energy (VLO) climbing 3.6% to $175.62, nearing a $178.43 buy point. Refining margins remained strong amid steady “crack” spreads between crude and gasoline. Crude oil futures (CL=F) settled at $59.75 per barrel, up 0.5% Friday but still down 2% for the week. Brent (BZ=F) traded around $63.60, lifted by traders’ reassessment of OPEC+’s decision to pause further production hikes through early 2026. The Industrial Select Sector SPDR Fund (XLI) edged 1.1% lower as investors rotated out of cyclical manufacturing plays, while Health Care Select SPDR Fund (XLV) gained 1.3%, driven by Intuitive Surgical (ISRG), which surged 4.8% to $560, breaking out past a $552.50 buy point after back-to-back quarters of accelerating growth.

Earnings Movers: Block, Opendoor, and Airbnb Diverge Sharply

Earnings results produced sharp divergences across sectors. Block Inc. (XYZ) plunged 15% to $65.45 as profit growth in its Square division slowed to 9.2%, raising concerns about scaling profitability. Opendoor Technologies (OPEN) sank 20% after posting its weakest revenue in two years, while Constellation Energy (CEG) missed forecasts and narrowed guidance, sliding 5%. In contrast, Airbnb (ABNB) rose 5% after international bookings lifted Q3 revenue beyond expectations, while Wendy’s (WEN) jumped 10% as EPS reached $0.24 versus consensus $0.20, offsetting U.S. softness with robust international growth. Expedia (EXPE) soared 17.5% to $258.25 after raising full-year guidance, marking one of the week’s top outperformers.

Macro Backdrop: Fed Divide, Shutdown Paralysis, and Rising Job Cuts

The macro environment worsened as the Federal Reserve displayed deep internal divisions over the timing of rate cuts. Markets had priced in a December cut, but the absence of economic data — due to the government shutdown — added uncertainty. Meanwhile, Challenger, Gray & Christmas reported the highest October job-cut total in more than two decades, largely tied to AI-driven automation. The University of Michigan sentiment index’s plunge underscored how political gridlock is eroding consumer confidence, with wealthy stockholders reporting an 11% rise in optimism compared to sharp declines across middle- and lower-income groups, exposing the deepening K-shaped economy.

Commodities: Gold Near Record Year, Oil Faces Supply Anxiety

Gold (GC=F) futures closed around $4,009.80 per ounce, gaining 0.47% Friday and remaining on track for their strongest year since 1979, even after retreating nearly 9% from October’s record high above $4,350. Analysts at Macquarie warned the metal may have peaked as global growth recovers and real rates remain elevated. The U.S. dollar index (DXY) was little changed, while Treasury yields hovered at 4.09% on the 10-year note, reflecting steady demand for safe assets. Despite a midweek rebound, both WTI and Brent crude are headed for multi-week declines, with traders weighing OPEC+’s production pause against forecasts for a supply glut into early 2026.

Crypto Collapse: Bitcoin Falls Below $100,000 Before Rebound

The cryptocurrency market continued to unwind, erasing nearly all 2025 gains. Bitcoin (BTC-USD) dropped below $100,000 several times during the week before recovering to $101,797, down roughly 6% for the week and 20% off its October record of $126,000. Long-term holders have sold over 1 million BTC since June, according to Compass Point, marking one of the largest profit-taking waves since 2021. The broader crypto market’s capitalization has shrunk from nearly $4.4 trillion at its October peak to just above $3.5 trillion, with traders citing leveraged liquidations and cooling institutional inflows.