TheDrop Market Analysis, 11/06/25

Markets sank significantly as private job data showed growing rates of layoffs, and stock valuations remain oversaturated.

A "No Hiring" sign alongside other signs, weburbanist.com.

The Nasdaq Composite, which contains the largest tech-related tickers on the stock market, led declines during market hours with its 1.9% decline. Similarly, the smaller-business-heavy Russell 2000 index fell 1.86%, the Dow Jones Industrial Average fell 0.84%, and the S&P 500 index fell 1.12%. The VIV volatility index surged 8.27%, reflecting the substantial declines experienced by many stocks today, less linear than yesterday.

Asian ETFs like the Japanese Nikkei 225 and the Hong Kong Hang Seng surged after Nvidia CEO Jensen Huang made remarks regarding China's growing dominance over the artificial intelligence industry, especially as the Chinese government subsidized Huawei's AI innovations against U.S. competitors like Nvidia amid ongoing trade tensions. European ETFs, from the FTSE 100 to the CAC 40, saw moderate losses.

Cryptocurrencies like Bitcoin and Ethereum fell due to increasing liquidations, as the market experienced over $1.1 billion in liquidations recently, especially amongst long positions, leading to a rapid loss of confidence among traders. Additionally, many of these cryptocurrencies have very high valuations, meaning that correction is almost inevitable. Precious metals like gold and silver, meanwhile, held on to their very high valuations.

Stocks fell significantly as companies pursue the highest rates of layoffs in 22 years (in the span of a month), primarily due to the widespread transition to artificial intelligence, which has displaced many entry-level careers, increasing structural unemployment. In fact, in the month of October alone, roughly 1,100,000 employees have been laid off. But what is making this job data different from previous poor ones (which were followed by higher share price growth) is the profound number of individuals left unemployed, which could make the economy less stimulated with less spending in the hands of consumers.