Weekly Market Insights | Tough Week for Tech Stocks

Brent Foster

November 11, 2025

Stocks hit a rough patch last week as fresh labor market data, low consumer sentiment (3yr. low), and the ongoing government shutdown unnerved investors. Good news yesterday (Nov. 10th), the government shutdown appears to be ending by Wednesday this week.

Last week, the Standard & Poor’s 500 Index declined 1.63% the S&P 500 ended Friday's session at 6,728.80. This marks its first weekly loss since the week ended Oct. 10. The index is up 14% this year. The Nasdaq Composite Index dropped 3.04%. The Dow Jones Industrial Average fell 1.21%. The MSCI EAFE Index, which tracks developed overseas stock markets, edged down 0.83%.^1,2

Nasdaq’s Toughest Week Since April

Economic readings have been sparse for the past month as the government shutdown has delayed multiple reports. Preliminary results from one report that did come in this week -- US consumer sentiment as measured by the University of Michigan -- showed consumer sentiment fell to the weakest level in more than three years amid concerns about the shutdown's impact on the economy.

The main sentiment index dropped for a fourth consecutive month to 50.3 in November from 53.6 in October, the lowest reading since June 2022. The consensus was for a 53 print in a Bloomberg poll.

Now in its 41st day, the US government shutdown is the longest ever. Some federal employees have been furloughed and key economic data was delayed, including Friday's nonfarm payrolls report.

The technology sector had the largest percentage drop this week, falling 4.2%, followed by a 1.7% loss in communication services, a nearly 1.6% decline in consumer discretionary and a 1.1% slip in industrials.

Super Micro Computer (SMCI) had the largest percentage drop in the technology sector, with its shares falling 23%. The company reported fiscal Q1 adjusted earnings and revenue below analysts' mean estimates and forecast fiscal Q2 adjusted earnings per share below the Street view, even as the company raised its fiscal 2026 net sales guidance.

In communication services, shares of Take-Two Interactive Software (TTWO) fell 9.5% as the company reported a wider-than-expected fiscal Q2 loss and delayed the launch of its Grand Theft Auto VI game.

Still, a number of sectors rose this week. Energy advanced 1.5%, followed by a 1.3% rise in health care and a 1% increase in real estate. Consumer staples, financials, utilities and materials also edged higher.

The gainers in energy included Targa Resources (TRGP), which reported Q3 net income up from the year-earlier period and above analysts' mean estimate. The company also priced a public offering of $750 million of 4.35% senior notes due 2029 and $1 billion of 5.4% senior notes due 2036. The offerings were priced at 99.938% and 99.92% of the notes' face value, respectively. Shares rose 12%.

Labor Market Paradox

This Week: Key Economic Data

Tuesday: NFIB Small Business Optimism Index.

Wednesday: Federal Reserve Presidents Anna Paulson (Philadelphia) and Raphael Bostic (Atlanta) speak.

Thursday: Weekly Jobless Claims.* Consumer Price Index (CPI).* Fed Presidents John Williams (New York), Alberto Musalem (St. Louis), Beth Hammack (Cleveland), and Raphael Bostic (Atlanta) speak. Federal Budget.

Friday: Retail Sales.* Producer Price Index (PPI).* Business Inventories.* Fed Presidents Jeff Schmid (Kansas City) and Lorie Logan (Dallas) speak.

^{* Data for these indicators may be delayed or altogether unavailable due to the government shutdown.}

^{Source: Investors Business Daily - Econoday economic calendar; November 7, 2025. The Econoday economic calendar lists upcoming U.S. economic data releases (including key economic indicators), Federal Reserve policy meetings, and speaking engagements of Federal Reserve officials. The content is developed from sources believed to be providing accurate information. The forecasts or forward-looking statements are based on assumptions and may not materialize. The forecasts also are subject to revision.}

This Week: Companies Reporting Earnings

Monday: CoreWeave Inc. (CRWV), Barrick Mining Corporation (B)

Wednesday: Cisco Systems, Inc. (CSCO), Transdigm Group Incorporated (TDG), Manulife Financial Corp (MFC)

Thursday: The Walt Disney Company (DIS), Applied Materials, Inc. (AMAT), Brookfield Corporation (BN), NetEase, Inc. (NTES)

^{Source: Zacks, November 7, 2025. Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Companies may reschedule when they report earnings without notice.}

“Writing is thinking on paper.”

– William Zinsser

How Qualified Charitable Distributions Can Help Manage Your Tax Burden

Generally, distributions from a traditional Individual Retirement Account are taxable in the year the account owner receives them. However, a qualified charitable distribution (QCD) is one exception to this rule.

A QCD is a nontaxable distribution made directly by the trustee of an IRA to organizations that are eligible to receive tax-deductible contributions. Of course, the main benefit of giving to a charitable organization is making a difference. Yet, some tax benefits reward philanthropy. Making a QCD can help manage your taxable income while supporting qualifying charitable organizations.

This information is not a substitute for individualized tax advice. Please discuss your specific tax issues with a qualified tax professional.

Tip adapted from IRS¹⁰

What is located in the middle of nowhere?

Last Week's Riddle: Stick your fingers in my eyes, then move them and watch my jaws open wide. What am I?

Answer: A pair of scissors.

Llaima Volcano, Conguillio National Park, Chile

Temuco, Araucania, Chile

Footnotes and Sources

^{1. WSJ.com, November 7, 2025}

^{2. Investing.com, November 7, 2025}

^{3. CNBC.com, November 3, 2025}

^{4. CNBC.com, November 4, 2025}

^{5. WSJ.com, November 5, 2025}

^{6. CNBC.com, November 7, 2025}

^{7. WSJ.com, November 5, 2025}

^{8. CNBC.com, November 6, 2025}

^{9. CNBC.com, November 7, 2025}

^{10. IRS.gov, May 29, 2025}

^{11. WebMD.com, June 12, 2025}

^{12. MT Newswires, YCharts.com November 10 - 16 2025}

Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost.

The forecasts or forward-looking statements are based on assumptions, may not materialize, and are subject to revision without notice.

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