Stock market today: Nasdaq, S&P 500, Dow rise off lows as rough week for tech nears end

US equities concluded a volatile week lower, with the tech-heavy Nasdaq Composite posting its steepest loss since April, primarily driven by escalating concerns over AI valuations and a significant sell-off across the 'Magnificent Seven' large-cap technology stocks. Bearish consumer sentiment, hitting 2022 lows, and the ongoing government shutdown, which delayed key economic data like the jobs report, further pressured markets. Notably, Tesla shares declined despite shareholder approval of a $1 trillion pay package for Elon Musk, who detailed ambitious AI and chip manufacturing plans, while Meta faced scrutiny over revenue from scam advertisements.

Analysis

US equities concluded a volatile week lower, with the Nasdaq Composite experiencing its steepest loss since April, driven by escalating concerns over AI valuations and a significant sell-off among the "Magnificent Seven" technology stocks. The S&P 500 and Dow Jones Industrial Average also finished the week in the red. Bearish consumer sentiment, which dropped to 50.3 (the worst reading since 2022), and the ongoing government shutdown, delaying critical economic data like the October jobs report, further pressured market performance.

The tech sector's downturn was broad, with Nvidia (NVDA) falling over 9.5% for the week and Tesla (TSLA) declining more than 3% despite shareholder approval of a $1 trillion pay package for CEO Elon Musk. Meta (META) also saw losses exceeding 4% amid reports of significant revenue from scam advertisements, offsetting its announced $600 billion AI infrastructure investment. Intel (INTC) was a notable outlier, posting a gain on Friday.

This market environment reflects persistent investor skepticism regarding the sustainability of current AI-driven valuations and the impact of macroeconomic uncertainties. The crypto market also saw significant declines, erasing most of its 2025 gains, while oil prices, despite a Friday rally, ended the week with steep losses.

The confluence of these factors, including delayed economic indicators and corporate-specific challenges like Meta's ad revenue quality concerns and Tesla's ambitious AI targets, suggests a period of heightened scrutiny for growth-oriented sectors.

Key Decisions for Investors

• Investors should closely monitor the sustainability of AI-driven valuations and the performance of key technology stocks, particularly the 'Magnificent Seven', given recent sell-offs and skepticism.
• It is prudent to await clarity from economic data releases, once the government shutdown is resolved, to better assess the broader economic health and consumer outlook.
• Evaluate individual company fundamentals, such as Meta's revenue quality and Tesla's execution on ambitious AI and robotics initiatives, rather than reacting solely to headline news.