Tech sell-off continues, crypto erases majority of 2025 gains, and government shutdown costs mount

Market Overview - The markets are set to end the week in the red, with the NASDAQ down about 0.7%, the S&P 500 down about 0.5%, and the Dow down about 0.4% at the open [4][6] - Bitcoin is hovering around $100,000, down nearly 2.5%, while Ethereum is down 3.8% [4][5] - The tech sector is experiencing a selloff, particularly in AI stocks, which are falling from recent highs [6][8] Cryptocurrency Trends - Bitcoin is facing a decline of 9% this week, marking its worst week since March, attributed to long-term holders selling off [14][16] - The market is currently in a bear phase, with predictions that Bitcoin could drop further into the $70,000 range if it breaks the $93,000 support level [16][18] - Potential catalysts for a market turnaround include possible Federal Reserve rate cuts and the reopening of the government [18] Tesla Developments - Tesla's shareholders approved a nearly $1 trillion pay package for CEO Elon Musk, but the stock is down nearly 5% following the news [19][20] - Analysts express skepticism about Tesla's future performance, citing potential drops in vehicle sales starting in Q4 [22][23] Government Shutdown Impact - The ongoing government shutdown is causing economic disruptions, including flight cancellations and delays in economic data, which could impact GDP and consumer confidence [25][26] - Businesses are already facing uncertainty due to tariffs, and the prolonged shutdown is compounding these challenges [27][29] Retail Sector Insights - Retailers are expected to hire between 265,000 to 365,000 seasonal workers, significantly lower than the 442,000 hired last year [59][60] - Consumer demand is reportedly weaker, with retailers needing to keep prices modest to attract shoppers during the holiday season [34][62] Labor Market Analysis - Private sector data shows a mixed picture of the labor market, with healthy job creation reported by ADP but a spike in layoffs noted in the Challenger report [50][55] - Despite heavy investments in AI, job losses in information and financial services are increasing, indicating that AI's impact on job creation may not be as positive as anticipated [56][58]