Finance

Tech Stocks Tumble: How Economic Signals and Tariff Fears Drove Wall Street to Two-Week Lows

Tech stocks led a market decline as economic uncertainty and layoff concerns weighed on investors.

November 6, 2025, 3:34 PM

New York Stock Exchange building facade with US flags in Lower Manhattan's Financial District.

The exterior of the Wall Street Stock Exchange building features prominent columns and US flags. By Dogora Sun / Shutterstock.com.

Executive Summary

Wall Street’s major indexes declined to nearly two-week lows on Thursday, November 6, 2025, driven by renewed selling pressure in technology stocks and broader economic uncertainty.

The technology sector faced significant declines, with major companies like Microsoft, Nvidia, and Qualcomm experiencing drops due to valuation concerns and company-specific warnings.

Investor caution was exacerbated by mixed U.S. labor market data, a surge in layoffs in October, and uncertainty surrounding potential U.S. tariffs and the Federal Reserve’s future monetary policy decisions.

The Story So Far

Wall Street’s recent decline is primarily fueled by investor apprehension over potential U.S. tariffs and persistent uncertainty regarding the overall health of the U.S. economy. This cautious sentiment is exacerbated by conflicting labor market data, a cautious Federal Reserve stance on future rate cuts, and concerns over potential government shutdowns, all contributing to an environment of economic ambiguity.

Why This Matters

The recent decline in Wall Street’s major indexes, driven by renewed selling pressure on technology stocks and broader economic uncertainty, signals a period of heightened investor caution. This cautious sentiment, fueled by conflicting labor market data and the longest U.S. government shutdown, complicates the Federal Reserve’s ability to assess economic health and could lead to continued market volatility as investors grapple with unclear economic signals and potential tariff impacts.

Who Thinks What?

Investors are cautious, driving market declines due to concerns over potential U.S. tariffs, stretched technology valuations, and uncertainty surrounding the Federal Reserve’s next decision and the health of the U.S. economy.

Specific companies like DoorDash, Tapestry, Qualcomm, and Robinhood experienced significant stock declines after reporting profits below expectations, missing forecasts, or increasing operating expense projections.

Chicago Fed President Austan Goolsbee maintains a cautious stance on further interest rate cuts, emphasizing the need to rely on official economic data amidst mixed private sector indicators.

Wall Street’s major indexes declined to nearly two-week lows on Thursday, November 6, 2025, as technology stocks faced renewed selling pressure. The market downturn was exacerbated by concerns over potential U.S. tariffs and ongoing uncertainty regarding the health of the U.S. economy, keeping investors cautious.

Market Performance

The Dow Jones Industrial Average fell 1.04% to 46,820.90, the S&P 500 lost 1.13% to 6,719.71, and the Nasdaq Composite dropped 1.81% to 23,075.34. Declining issues significantly outnumbered advancers across both the NYSE and Nasdaq.

Technology Sector Under Pressure

Most technology stocks experienced declines, with worries about stretched valuations resurfacing after a brief recovery the previous day. Major tech companies like Microsoft and Nvidia saw shares fall 1.8% and 3%, respectively, impacting the broader information technology sector. The semiconductor index also decreased by 2.4%.

Qualcomm’s stock dipped 4.9% following the chip designer’s warning of a potential loss of business from key customer Samsung next year, despite an otherwise optimistic forecast.

Company-Specific Movements

DoorDash shares slumped 16.5%, hitting the bottom of the S&P 500 after the delivery firm reported third-quarter profit that fell short of Wall Street expectations. Tapestry also saw a 10.7% decline after its holiday-quarter earnings forecast missed projections, contributing to a 2.7% drop in the consumer discretionary sector.

Tesla fell 4.5% ahead of a shareholder vote on CEO Elon Musk’s compensation package. In contrast, Datadog surged 22.2% after the cloud security firm raised its annual profit and revenue forecasts. Robinhood dropped 8.9% after increasing its forecast for fiscal-year operating expenses.

Eli Lilly gained 1.8% after announcing a deal with Novo Nordisk to reduce prices for popular GLP-1 weight-loss drugs for government Medicare and Medicaid programs, and for cash payers. DraftKings rose 8.9% following reports that Disney signed the company as ESPN’s new sports-betting partner.

Economic Uncertainty and Fed Stance

The market’s cautious sentiment was attributed to several factors, including uncertainty surrounding the Federal Reserve’s next decision and potential government shutdowns. The longest U.S. government shutdown in history has led the Federal Reserve and investors to rely on mixed private sector indicators ahead of December’s monetary policy meeting.

Data released on Thursday showed U.S. employers announced a surge in layoffs in October, reaching the highest level for that month in 22 years, according to Challenger, Gray & Christmas. Revelio Labs also indicated job losses last month. An estimate by the Chicago Fed suggested the U.S. jobless rate likely increased in October to a four-year high, contrasting with Wednesday’s strong ADP report and creating uncertainty about the labor market’s health. Chicago Fed President Austan Goolsbee reiterated a cautious stance on further rate cuts without official data.