Nasdaq Down 0.4% before Jobs Report Drops
Nasdaq declines as tech stocks continue to struggle, and the wider market is down in anticipation of a weak jobs report.
Quick overview
- The Nasdaq Composite continued its decline, dropping 0.4% on Tuesday amid concerns over a soft jobs report.
- Tech stocks, particularly Nvidia and AMD, are leading the bearish trend, contributing to decreased investor sentiment in the AI market.
- Unemployment is expected to rise to 4.4% for November, with delayed employment data due to a government shutdown impacting market expectations.
- The upcoming jobs report may provide a slight market boost, but tech stocks are likely to continue their downward trajectory.
The Nasdaq Composite continued its Monday decline with a further drop on Tuesday, as the market anticipates a soft jobs report later in the day and is still suffering from slipping tech stock values.
The Nasdaq has taken most of the impact from stock market selling pressure, declining 0.4% Tuesday morning. The Dow Jones fell 0.2%, and the S&P 500 dropped 0.3%. These numbers are a reflection that the market expects a slightly declining employment rate for the upcoming jobs report.
Unemployment is expected to come in at 4.4% for the month of November with employment numbers declining for October. The employment data was supposed to be published earlier, but an extended 43-day government shutdown delayed the reports and kept government officials from collecting household data.
Nasdaq Takes the Biggest Hit as Tech Stocks Struggle
Tuesday’s slight decline might not be noteworthy except that it continues the trend of slipping stock values from Monday. The week started off relatively strong for the stock market, and it looked at first like the overall market would rally. But then Monday ended on a downer for the indices and that decline has continued through Tuesday morning.
The stocks that are pulling down the market the most right now are technology stocks. Nvidia (NVDA) has slid for several days in a row and is not propping up the Nasdaq like it did earlier in 2025. Despite its massive market cap and importance within the AI market, Nvidia has been bearish lately and has been responsible for decreasing investor sentiment in the AI market with its mediocre performance.
Advanced Micro Devices (AMD) is also down, losing 1.5% on Monday and then a further 0.61% on Tuesday in premarket trading. The company’s recent quarterly earnings were not impressive enough to sway investors that AMD can turn its heavy AI investments into profits.
That is the story across the board for AI-focused stocks. As tech companies reveal their hefty AI development costs and debt accumulated by purchasing smaller AI businesses, investors are pulling away from these stocks to choose less volatile ones. We anticipate tech stocks will continue to decline through the end of the year as investor sentiment on AI weakens. The new jobs report coming out later on Tuesday may give the market a slight boost but is unlikely to help sliding technology stocks.
This means that the Nasdaq and the S&P 500 are likely to fall further than the Dow Jones with each hit to the market, since they are weighted toward tech stocks. This week’s jobs data will be incredibly important to the currently volatile stock market.
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