Wall Street Plunges Back into the Red Amid Alarming Employment Data

• Why Did Wall Street Turn Red Today?
• What’s Happening with Tesla’s Shareholder Vote?
• How Is the Supreme Court Ruling on Trump’s Tariffs?
• What’s OpenAI’s Controversial Funding Plan?
• Which Tech Stocks Are Making Moves?
• What’s the Outlook for the Fed?
• How Are Commodities and Crypto Faring?
• What’s Next for the Markets?

Wall Street took a sharp downturn this Thursday, with major indices like the S&P 500, Dow Jones, and Nasdaq all slipping into negative territory. The drop comes as investors digest concerning employment figures and await Tesla's shareholder vote on Elon Musk's colossal compensation package. Meanwhile, the Supreme Court's skepticism over Trump-era tariffs and OpenAI's eyebrow-raising financial plans add to the market's turbulence. Here's a DEEP dive into what's shaking the financial world.

Why Did Wall Street Turn Red Today?

The S&P 500 fell 0.97% to 6,730 points, the Dow Jones dropped 0.75% to 46,955 points, and the Nasdaq slid 1.54% to 23,137 points, dragged down by AI stocks. Investors are grappling with mixed quarterly earnings and growing doubts about the lofty valuations of AI leaders. The Challenger report revealed a staggering 175% year-over-year surge in job cuts for October, the highest for the month since 2003. This unsettling data has rattled markets already on edge.

What’s Happening with Tesla’s Shareholder Vote?

Today, Tesla shareholders are voting on Elon Musk’s unprecedented $1 trillion compensation package. While Norway’s sovereign wealth fund opposes the plan, other major shareholders seem inclined to approve it, fearing Musk might step down if rejected. The package, tied to Tesla hitting a $8.5 trillion market cap, WOULD grant Musk an additional 12% stake in the company. Tesla’s stock dipped 3% ahead of the decision.

How Is the Supreme Court Ruling on Trump’s Tariffs?

The Supreme Court heard arguments yesterday on the legality of Trump’s tariffs under the IEEPA law. Early indications suggest skepticism from the justices, with a ruling expected in weeks. Treasury Secretary Scott Bessent, present at the hearing, remained optimistic, but legal experts warn a rejection could spark further battles over executive trade powers.

What’s OpenAI’s Controversial Funding Plan?

OpenAI CFO Sarah Friar hinted at seeking government-backed guarantees to fund its ambitious $1 trillion AI infrastructure spend. After backlash, she clarified her remarks, but the idea of taxpayer-backed AI financing has raised eyebrows. Microsoft, OpenAI’s partner, saw shares drop 1.9% amid the fallout.

Which Tech Stocks Are Making Moves?

• Snap surged 12.3% after announcing a $400M deal with Perplexity AI to integrate its search engine into Snapchat.
• Apple rose 1.1% on reports of a $1B annual deal with Google to revamp Siri using a 1.2-trillion-parameter AI model.
• Qualcomm fell 4.1% despite beating earnings estimates, as its guidance failed to impress.

What’s the Outlook for the Fed?

Markets now price in a 69% chance of a Fed rate cut on December 10, which would lower the federal funds rate to 3.50–3.75%. However, delayed economic reports due to the government shutdown have clouded the picture.

How Are Commodities and Crypto Faring?

WTI crude dropped 1% to $59/barrel, gold held steady at $3,977/ounce, and bitcoin remained under pressure at $102,000. The dollar index lost 0.3% against a basket of currencies.

What’s Next for the Markets?

With employment data delayed and geopolitical tensions simmering (China warned the U.S. to avoid sensitive topics like Taiwan), volatility is likely to persist. As the BTCC team notes, "This isn’t just a blip—it’s a recalibration of risk in an AI-driven economy."