November 7, 2025 — U.S. stocks tumbled on Thursday, with the Nasdaq falling more than 1%. The U.S. dollar index slipped below the 100 mark, while Treasury yields plunged across the curve. Spot gold surged early but reversed to close below $3,980, and oil prices were weighed down by a sharp rise in inventories. Markets are locked in a tug-of-war between surging Fed rate-cut expectations for December and growing fears of an economic slowdown.
Market Highlights & Fundamentals
U.S. Equities: Weak Jobs Data Sparks Panic, Tech Leads Decline
The S&P 500 fell 0.7%, the Dow dropped 350 points (-0.75%), and the Nasdaq lost 1.1%. The Nasdaq-100 was down 1.2%.
Sector performance was mixed: the Philadelphia Semiconductor Index fell 1.3%, while energy stocks gained 0.63% on rebound expectations for crude oil.
Notable movers: Snap jumped 18% (advertising business recovery), Datadog surged 19% (strong demand for cloud monitoring).
Key Drivers:
Labor market deterioration: The Challenger report showed October corporate layoffs hit a 20-year high, pushing the probability of a December rate cut to 60%.
Policy recalibration: Brown Brothers Harriman noted that “the Fed’s prolonged tightening may further expose fragility in the labor market.”
FX & Bonds: Dollar Breaks Below 100, Treasury Yields Plunge
The U.S. dollar index slipped 0.2% to 99.80, a one-week low.
The 10-year yield fell over 7 bps to 4.09%, and the 2-year yield dropped to 3.57%.
Market logic: Weak employment data reinforced rate-cut bets, driving flows into fixed income assets.
Among majors, the yen rebounded to 153.50, while the euro climbed to 1.1500 against the dollar.
Commodities: Gold’s V-Shaped Reversal Fails, Oil Pressured by Surging Inventories
Spot gold briefly hit $4,010 before retreating below $3,980, closing down 0.3%.
