Dow Jones drops 250 points amid continued AI selloff | FXStreet

Dow Jones drops 250 points amid continued AI selloff

The Dow Jones Industrial Average fell sharply on Thursday, losing as much as 400 points at its lowest level and hitting its weakest valuation in nearly two weeks. Equity markets faced heavy pressure as investors shifted away from AI-related technology stocks.

Due to the ongoing federal government shutdown, access to official US economic data remains restricted. Traders are relying on more volatile private datasets, raising concerns over the accuracy of figures that historically show weak correlation with federal data.

The Dow slipped below 47,000 points, marking a 2.6% decline from its recent record highs above 48,000 reached at the end of October. The Thursday downturn followed a short-lived recovery earlier in the week, as tech stocks again came under scrutiny.

All traded lower for the day as investors questioned whether current valuations—and forward P/E ratios stretching far into the future—can be justified amid uncertain revenue prospects from AI initiatives.

October’s US Challenger Job Cuts report indicated a net loss of just over 153,000 positions. It was the highest figure recorded since April, when the Trump administration announced its comprehensive tariff policy, which faced months of delays before partial implementation.

"This marks the highest Challenger figure reported since April of this year, when the Trump administration formally announced its widespread tariff strategy."

Author’s Summary

Investors fled AI tech stocks as the Dow fell below 47,000, with weak labor data and limited government reporting intensifying market uncertainty.

more

FXStreet FXStreet — 2025-11-06

More News