US Markets Close Lower: DJIA Drops 398 Points; Nasdaq Declines 1.9% with Nvidia Leading the Fall at Approximately 4%

Written by Emily J. Thompson, Senior Investment Analyst

Source: aastocks

Updated: Nov 06 2025

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Source: aastocks

Market Performance: High-valuation AI stocks faced significant sell-offs, leading to a weak opening and a decline in the US stock market, with the DJIA dropping 398 points, the S&P 500 down 75 points, and the Nasdaq falling 445 points.
AI Chip Stocks: Major AI chip stocks like Nvidia, AMD, and Palantir experienced substantial losses, with Nvidia down 3.7%, AMD down 7.3%, and Palantir down 6.8%. Qualcomm reported a net loss of $3.12 billion, resulting in a 3.6% drop in its stock price.
Economic Indicators: The ISM Manufacturing PMI for October in the US was reported at 48.7, lower than the previous value of 49.1 and below the forecast of 49.5, indicating a contraction in manufacturing activity.
Tech Stock Trends: Major tech companies saw declines, with Meta and Microsoft both down around 2%, Tesla losing 3.5%, and Amazon sliding 2.9%, while Apple managed to hold steady amidst the downturn.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.