The Economic Timesยท2025-11-08 09:52Market Overview - The Nasdaq Composite index closed at 23,004.54 on November 7, down 0.21% for the day and marking a weekly loss of approximately 2.8%, contrasting with a surge of over 50% since April driven by optimism in AI developments and related stocks [1][8] - Major AI-related firms led the downturn, with Nvidia dropping 7%, AMD declining 8.8%, and Meta Platforms and Microsoft each falling around 4% over the week [8] Company-Specific Performance - Super Micro Computer experienced the steepest decline, plunging 23%, indicating concerns about future demand for AI infrastructure [3][8] - The sell-off in AI stocks is attributed to profit-taking after significant gains and skepticism regarding inflated valuations in the sector [3][8] Economic Indicators - A surge in job cuts, the highest in over 20 years for October, has contributed to market anxiety amid a challenging job market environment for 2025 [7][8] - China's exports fell 1.1% year-on-year in October 2025, marking the steepest decline since February and the first contraction in eight months [8] Market Sentiment - Investors are recalibrating valuations due to geopolitical risks and valuation concerns, leading to heightened market volatility and cautious sentiment [6][7] - Despite the weekly decline, the broader US stock market showed resilience, with the Dow Jones Industrial Average rising 0.16% and the S&P 500 edging up 0.13% on November 7, although both indexes logged weekly losses [7][8] Global Market Trends - Global markets exhibited renewed caution, with the MSCI global equities index dipping 0.07% and Europe's STOXX 600 falling 0.55% [7][8] - The dollar index slipped 0.11% to 99.57, while the euro strengthened to $1.1563 [8]