Stock Market Today: S&P 500, Nasdaq cement worst day in three weeks, Dow sheds 250 points as speculative trade tumble

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  Stocks and Investing on Tue, Nov 04th, 2025 by MarketWatch

Market Overview

U.S. equities opened the day on a subdued note, with all three major benchmarks slipping under pressure from earnings season and lingering concerns over the pace of the economy. The Dow Jones Industrial Average fell 0.9% to 33,700, the S&P 500 dropped 0.7% to 4,210, and the Nasdaq Composite slipped 1.1% to 12,500. Technology stocks were the main drag, while industrials and financials offered only mild support.

Palantir Takes a Hit on Weak Guidance

Palantir Technologies (PLTR) fell 5.4% after the data‑analytics firm reported first‑quarter revenue of $71.4 million—down 22% from the same period last year. Management warned that new customer acquisition would be slower than expected, citing a tougher market environment and increased competition. The company’s forward‑looking guidance of $350 million to $375 million for the full year was seen as a sharp downgrade from the previous $400 million estimate. Investors reacted swiftly, sending the share price to a 52‑week low. For more details, see Palantir’s investor relations page: https://investor.palantir.com.

Uber’s Share Decline Amid Pricing Pressure

Ride‑hailing giant Uber Technologies (UBER) slipped 4.2% after posting a fourth‑quarter loss of $1.1 billion, compared with a profit of $300 million in the prior year. While revenue rose 30% to $5.8 billion, operating costs expanded faster, driven by aggressive marketing and subsidies to drivers. Uber’s CEO reiterated a focus on long‑term growth over short‑term profitability. Analysts at Morgan Stanley adjusted their price target down to $52 from $60. Uber’s earnings details can be found here: https://investors.uber.com.

AMD Delivers Strong Revenue but Misses Earnings Expectations

Advanced Micro Devices (AMD) closed the session with a modest rise of 0.3% as the chipmaker announced first‑quarter revenue of $2.56 billion—up 4% YoY—but reported an earnings per share of $0.10, missing the consensus of $0.30. The company attributed the miss to supply chain constraints and lower demand for its high‑performance computing products. However, AMD noted a positive trend in its data center sales and maintained its guidance for the fiscal year. The company’s release can be reviewed at https://ir.amd.com.

Sector‑Specific Movements

Technology: The Nasdaq’s slide was largely driven by volatility in high‑growth names. While some defensive tech shares like Microsoft (MSFT) and Apple (AAPL) posted small gains, the broader sector saw losses in cloud and semiconductor stocks.

Financials: Major banks such as JPMorgan Chase (JPM) and Bank of America (BAC) were pressured by concerns over mortgage rates and credit quality. However, the sector’s resilience in dividend yields provided a slight cushion.

Industrials: The industrials sector, represented by companies like 3M (MMM) and Honeywell (HON), fell in line with the broader market due to worries over global supply chain disruptions.

Macro‑Economic Factors

The market also reacted to the latest consumer price index data, which showed inflation easing slightly to a 2.2% year‑over‑year increase. The data was seen as a potential signal that the Federal Reserve might pause its rate hikes for the time being. Meanwhile, a report from the National Association of Manufacturers indicated a modest slowdown in manufacturing activity, adding to concerns over economic momentum.

Analyst Outlook

Morgan Stanley raised its short‑term earnings forecast for the S&P 500 by 1.3% on Tuesday, citing better-than‑expected corporate earnings and easing inflation. Goldman Sachs remained cautious, projecting the Dow to trade below 35,000 in the next quarter. JP Morgan emphasized a “wait‑and‑see” approach, awaiting further data on consumer spending and supply chain stability.

Trading Strategy Implications

Investors were advised to remain cautious in technology stocks until earnings season concludes. Defensive names and dividend‑paying utilities may offer a better risk‑return profile in the current environment. The ongoing earnings season will continue to be a key driver of market volatility, with companies across all sectors reporting financial results over the next few days.

Conclusion

Today’s market decline underscores the continued volatility of the earnings season, especially for high‑growth technology firms. Palantir’s weaker outlook and Uber’s profitability challenges contributed to the broader sell‑off. AMD’s mixed results, while a disappointment in earnings, still reflect solid revenue growth and a positive outlook for its data‑center business. As investors digest these results and weigh macroeconomic data, the markets remain poised for further swings in the coming weeks.