Friday, October 31, 2025-The Nasdaq took a sharp dip today after disappointing earnings from Meta and Microsoft rattled investor confidence in the tech sector. Both companies reported weaker-than-expected ad revenue and cloud growth, triggering a sell-off that dragged major indices into the red.
At the same time, the Biden administration’s decision to cut certain tariffs on Chinese goods added another twist to an already volatile trading day. While the move aims to cool inflation and stabilize trade ties, it sent mixed signals to markets already on edge over slowing corporate profits and global economic uncertainty.
Investor reaction was immediate. Meta’s stock fell nearly 7%, while Microsoft slipped more than 4%, wiping billions off their combined market value. Analysts on Wall Street warned that the broader tech slowdown could signal a shift from the hypergrowth era that defined the post-pandemic market.
Meanwhile, the tariff rollback announcement briefly boosted manufacturing and consumer goods stocks, as traders bet on lower import costs. Still, the relief was short-lived by mid-afternoon, risk aversion had taken over, and the Nasdaq closed deep in negative territory.
Economists say today’s turbulence reflects a market recalibrating to new realities: tighter margins, cautious spending, and geopolitics reshaping global trade. The U.S.–China tariff adjustment could open doors for fresh negotiation, but it also underscores how fragile investor sentiment remains. As earnings season continues, Wall Street is bracing for more shocks and investors are learning that even the biggest names aren’t immune to the slowdown.
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