Tech Tumbles Again: AI Valuations And Job Cuts Rattle Markets

Ulli Market Commentary Contact

[Chart courtesy of MarketWatch.com]

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Stocks took a hit today, with the sell-off gaining steam as the session wore on. The usual suspects in the AI space were under pressure again, as investors grew increasingly uneasy about sky-high valuations.

Adding fuel to the fire were fresh concerns about the job market. October saw a wave of layoff announcements—over 153,000 job cuts, to be exact. That’s a whopping 183% jump from September and the worst October for layoffs in 22 years. In fact, 2025 is shaping up to be the roughest year for job losses since the 2009 recession.

AI stocks stayed in the spotlight. Qualcomm dropped 2%, despite beating earnings expectations. AMD, which had a strong showing yesterday, gave back 5%. Palantir and Oracle slipped 2% and 3%, respectively. Even Nvidia and Meta, two of the “Magnificent Seven,” couldn’t escape the downturn.

Meanwhile, traders kept one eye on Washington, where the Supreme Court is reviewing the legality of tariffs imposed during the Trump administration. Based on the justices’ comments, many expect a ruling that could roll back those trade taxes—potentially a bullish catalyst for stocks down the line.

But for now, sentiment stayed sour. Cleveland Fed President Beth Hammack made it clear that inflation is still public enemy number one. She said the Fed should keep tightening the screws to bring prices down, even if it means more pain in the labor market.

Tech stocks bore the brunt of the selling, with the Mag 7 once again lagging the rest of the S&P 500. Bond yields dipped, the dollar softened, and gold got a brief lift—but couldn’t hold the $4,000 mark. Bitcoin also slid with tech, though it found support around $101,000.

Some analysts think markets could bounce once the government reopens, but the odds of that happening by November 15 have dropped below 50%.

So, here’s the big question: Is this just a temporary shakeout, or are we looking at the start of a broader risk-off shift?

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Wall Street Rallies As Broad Participation Returns

Ulli Market Commentary Contact

[Chart courtesy of MarketWatch.com]

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The major indexes snapped back from Tuesday’s shakeout, with buyers jumping back in and sending chipmakers like Advanced Micro Devices, Broadcom, and Micron Technology surging 3% to 6% as the broader artificial intelligence theme regained its footing.

Even Nvidia and Oracle managed to claw back some recent losses, hinting at fresh optimism in the high-flying tech sector.

The day’s rally came alongside some upbeat economic news: ADP payrolls and ISM services both topped expectations, signaling economic resilience.

That helped broaden out the gains, with positive breadth showing up across the market and small caps leading the way higher.

Meanwhile, the dollar’s recent climb paused, and bitcoin bounced off key support near $100,000.

Even though the Mag 7 basket lost some steam late in the day, the initial strength and improvement in market participation made for a more solid-feeling rally—at least for now.

Strong data also drove up bond yields, trimming odds of a third Fed rate cut in December. Gold nearly reclaimed its $4,000 mark, while silver pushed higher.

With the broader market joining in instead of just the AI favorites, will this turn into a more durable rally, or are traders just seizing another quick rebound before the next storm?

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AI Stocks Lead Market Slide As Wall Street Warns Of Possible Pullback

Ulli Market Commentary Contact

[Chart courtesy of MarketWatch.com]

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Stocks stumbled out of the gate today, dragged down by some of the biggest names in artificial intelligence.

Palantir took a 7% hit—even though it beat Wall Street’s Q3 expectations and offered strong guidance. The catch? Investors weren’t thrilled about the company’s lack of visibility for 2026, which left a sour taste.

Oracle slipped over 1%, trimming its impressive 50% gain this year. AMD, which has more than doubled in 2025, dropped more than 4%. Nvidia and other AI favorites also lost ground, adding to the pressure.

Adding fuel to the fire were some sobering comments from Wall Street heavyweights. Goldman Sachs CEO David Solomon warned of a possible 10–20% market pullback in the next year or two.

Morgan Stanley’s Ted Pick echoed the sentiment, saying we should be prepared for 10–15% drawdowns—even if they’re not triggered by a major economic shock.

Breadth was weak again, with over 300 stocks in the S&P 500 closing in the red. That’s raising eyebrows about how concentrated gains have been in just a handful of tech names.

And with November historically being a strong month for stocks, today’s across-the-board selloff—stocks, bonds, gold, silver, even bitcoin—makes you wonder if that seasonal strength is about to be tested.

The tech-heavy Mag 7 got hit harder than the broader market, while bond yields dipped and the dollar climbed to its highest level since May. Even alternative assets couldn’t catch a break.

So, with everything flashing red, the big question is: Are we seeing the start of a bigger sentiment shift—or will dip buyers swoop in and stabilize things before the week’s out?

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Only Tech’s Winning: 400+ S&P Stocks In The Red

Ulli Market Commentary Contact

[Chart courtesy of MarketWatch.com]

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The week kicked off with the Nasdaq as the only major index in the green, riding the AI wave hard after a flurry of big deals.

Amazon, a Mag 7 heavyweight, jumped 4% on news of a $38 billion partnership with OpenAI—and get this, it’ll gobble up hundreds of thousands of Nvidia GPUs.

That lit a fire under chip stocks too: Iren (a data center player) soared 19% after locking in a $9.7 billion multiyear deal to supply Microsoft with Nvidia’s next-gen GB300 GPUs. Micron led the pack with a 4% pop, Nvidia added 2%, and the VanEck Semiconductor ETF (SMH) climbed 1%.

But outside tech? Crickets. Over 400 S&P 500 stocks closed lower—classic weak breadth, even though the index still squeaked out a gain.

I think this split personality is the real story: AI keeps lifting the market, but most stocks are struggling. We’re now 80%+ through Q3 earnings, with over 80% beating estimates—solid, but the love’s all going to the usual suspects. This week, Palantir and AMD drop their numbers, so expect more AI drama.

In the end, S&P 500 and Nasdaq closed green, while the Dow and small caps stumbled. The most-shorted stocks had their worst day in two weeks—ouch.

Bond yields ticked up as December rate-cut odds faded, the dollar kept flexing, gold dipped overnight but bounced back above $4,000, and bitcoin slid toward $107K.

November’s historically the S&P’s best month—up 1.8% on average. Will the AI train keep rolling, or will weak breadth finally matter?

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ETFs On The Cutline – Updated Through 10/31/2025

Ulli ETFs on the Cutline Contact

Do you want to know which ETFs are hot and which ones are not? Then you need my High-Volume ETF Cutline report. It tells you how close or far each of the 311 ETFs I follow is from its long-term trend line (39-week SMA). These are the ETFs that trade more than $5 million a day, so they are not some obscure funds that nobody cares about.

The report is split into two parts: The winners that are above their trend line (%M/A), and the losers that are below it. The yellow line is the line of shame that separates them. You can see how many ETFs are in each group and how they have changed since the last report (290 vs. 275 current).

Take a peek:

The HV ETF Master Cutline Report

If you are confused by some of the terms we use, don’t panic. I have a helpful Glossary of Terms for you.

If you want to learn more about the Cutline method and how it can make you rich (or at least less poor), read my original post here.

ETF Tracker Newsletter For October 31, 2025

Ulli ETF Tracker Contact

ETF Tracker StatSheet          

You can view the latest version here.

OCTOBER SURPRISE: STOCKS RALLY AMID TRADE TRUCE AND TECH REBOUND

[Chart courtesy of MarketWatch.com]

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Stocks kicked off this session with a bang, especially the Nasdaq, thanks to some impressive earnings from Amazon. The tech giant’s shares jumped 10% after it reported a 20% revenue boost in its cloud division—well above Wall Street’s expectations.

Netflix also made headlines, climbing 3% after announcing a 10-for-1 stock split, which tends to attract more retail investors.

This rally came after a rough Thursday, when major tech names like Meta, Microsoft, and Nvidia dragged the market down. Meta suffered its worst single-day drop in three years, as investors grew uneasy about ballooning AI-related expenses.

On the geopolitical front, a bit of relief: Presidents Trump and Xi agreed to a one-year trade truce during their meeting in South Korea, easing fears of a full-blown trade war.

Despite some weak macro data earlier in the month, October wrapped up on a surprisingly strong note.

The S&P 500 rose 2.3%, and the Dow notched its sixth straight monthly gain—a streak we haven’t seen since 2018. Most of the strength came from tech, with the “Magnificent Seven” outperforming the broader market.

Bond yields were all over the place but ended lower, as expectations for a December rate cut faded. The dollar posted only its second monthly gain this year, while gold and silver both rallied—up 3.6% and 3.9%, respectively.

Bitcoin hit a record high early in the month but then drifted sideways, holding steady around the $110k mark.

So, despite a month light on economic data, markets managed to dodge the usual October volatility and closed out in the green.

The big question now is: Can this momentum carry us through the strongest seasonal stretch of the year—or did we just burn through the good vibes too early?

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