🫧 Markets Stumble Into Weekend as AI Bubble Worries and Historic Shutdown Continue to Haunt Traders

Well, happy Friday - if you can call it that when your portfolio's looking like it just went three rounds with Mike Tyson.

Author

Jason Paloma
November 07, 2025 • Estimated Reading Time: 15 minutes

😎 Market Vibes

🫧 Markets Stumble Into Weekend as AI Bubble Worries and Historic Shutdown Continue to Haunt Traders

Well, happy Friday - if you can call it that when your portfolio's looking like it just went three rounds with Mike Tyson. Markets opened this morning in the red, with S&P 500 futures down 0.5%, Nasdaq futures sliding 0.7%, and the Dow futures off 0.3%. It's like watching a slow-motion car crash, except the car is made of AI stocks and the crash started on Monday.

Here's the vibe: After a week of getting absolutely pummeled - the Nasdaq's headed for a 2.8% weekly loss, its worst since April - traders are basically limping to the finish line. And can we talk about how yesterday ended? The S&P 500 closed at 6,720, down 1.1%. The Nasdaq tanked 1.9%. The Dow dropped 0.8%. AI darlings like Nvidia (down 3.7%), Microsoft (down 2%), and Amazon (down 2.9%) led the bloodbath. It's giving "overvalued tech bubble" energy, and Wall Street's finally starting to notice.

Speaking of sweating, the government shutdown just hit day 38 - officially the longest in American history. At this point, it's not even a shutdown anymore; it's a lifestyle choice. And today, the FAA announced they're slashing flight capacity by 10% at 40 major airports because air traffic controllers have been working without pay for over a month. Nothing says "economic confidence" quite like cancelled flights and federal workers facing eviction, right?

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❄️ Bitcoin Barely Holding $100K as Crypto Winter Vibes Return

Remember when Bitcoin was supposed to be digital gold? Well, today it's trading around $101,955, clinging to that psychological $100K level like a kid holding onto a helium balloon in a windstorm. The entire crypto market has basically erased its 2025 gains - we're talking a 20% drop from the October peak of $126K, and the market cap has shrunk by hundreds of billions.

Here's what's wild: Bitcoin dipped below $100K earlier this week for the first time since June 23rd. That's right - four months of gains, poof, gone faster than your willpower at an all-you-can-eat buffet. Ethereum's down to $3,354, off nearly 1%. The whole crypto complex is getting dragged down by the same valuation concerns hammering tech stocks, because surprise - turns out AI infrastructure and crypto attract a lot of the same "number go up" enthusiasts.

Analysts are pointing to long-term holders selling off, combined with retail investors who are notably absent from this rally compared to previous cycles. It's like showing up to a party and realizing you're the only one there. Not a great look.

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💪 Gold Hits Fresh Records While Everything Else Burns

While stocks and crypto are having an existential crisis, gold just keeps doing its thing - being shiny and going up. The precious metal is trading at $4,003 per ounce this morning, up 0.3% and hovering near its all-time high of $4,377 set back in October. Year-over-year, gold's up a stunning 48.86%. Not too shabby for a "barbarous relic," as the crypto bros like to call it.

Here's the thing: when you've got a 38-day government shutdown, AI valuations that would make even a venture capitalist blush, and Bitcoin looking shaky, suddenly that boring yellow metal starts looking pretty attractive. Central banks have been gobbling up gold all year - the National Bank of Kazakhstan alone has been on a buying spree, and even Brazil's central bank jumped back in after a four-year hiatus.

The World Gold Council expects central bank purchases to hit 750-900 tonnes this year. That's a lot of shiny bars in a lot of vaults, and it's one big reason why gold keeps grinding higher even when everything else is melting down.

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📊 Consumer Sentiment Data Could Move Markets Today

At 10 AM Eastern, we're getting the preliminary University of Michigan Consumer Sentiment reading for November. Economists are expecting it to come in around 54.0, barely changed from October's 53.6. For context, consumer sentiment is currently 36% below its long-term average. Translation: Americans feel about as optimistic about the economy as they do about their chances of winning the lottery.

The fun part? This data drop happens against the backdrop of that record government shutdown, soaring inflation concerns (year-ahead expectations are at 4.6%), and a labor market that's showing serious cracks. October saw 153,000 layoffs according to Challenger, Gray & Christmas - the highest for the month in over two decades. And most of those cuts? Tech sector, baby. AI's great until it starts eating jobs.

If sentiment comes in weaker than expected, it could be the cherry on top of this week's sell-off sundae. If it somehow beats expectations? Well, markets might catch a brief relief rally before everyone remembers we're still in day 38 of Shutdown: The Sequel.

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💻 Tech Earnings Can't Save the Narrative

Let's talk about the elephant in the room - or should I say, the overvalued tech stock in the portfolio. All year, the market rally has been carried by AI hype and a handful of mega-cap stocks. Now that narrative is crumbling faster than a cookie in milk.

The Mag 7 stocks - those beloved Apple, Microsoft, Alphabet, Amazon, Nvidia, Meta, and Tesla darlings - are finally showing cracks. Nvidia's down from its highs. Microsoft's getting questioned on its massive AI spending. Amazon's dealing with AWS outages. It's like watching your favorite band's reunion tour and realizing they're all past their prime.

What's next? Nvidia reports earnings November 19th, which will either confirm this was all just a healthy pullback or validate every bear's worst nightmares. Until then, expect more volatility, more hand-wringing, and more financial pundits saying "I told you so."

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🎭 Fed Watching and Shutdown Drama Intensify

The Federal Reserve is in its quiet period before the next meeting, which means no policy changes today - just a lot of speculation about what December might bring. Fed officials have been playing it coy, but with the labor market softening and this shutdown chaos dragging on, traders are still pricing in a decent chance of another rate cut.

Here's where it gets messy: The Bureau of Labor Statistics was supposed to release the October jobs report today, but guess what? Shutdown. Data delayed. Again. So the Fed's decision-making is happening partially blind, which is like trying to parallel park with a blindfold on. Possible? Sure. Advisable? Absolutely not.

Meanwhile, Senate Republicans are planning a rare Friday session to try - for the 15th time - to pass a continuing resolution to reopen the government. Democrats keep blocking it because it doesn't extend Affordable Care Act subsidies. Republicans refuse to budge. It's political theater at its finest, except the stage is on fire and everyone's still arguing about who forgot the fire extinguisher.

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🎬 Bottom Line

Here's where we stand heading into the weekend: Markets are bruised and battered after a week of AI bubble concerns and valuation reality checks. Bitcoin's fighting to hold $100K while gold keeps making new highs. The government shutdown just became the longest in U.S. history with no end in sight. Consumer sentiment is in the gutter, economic data is delayed, and the Fed's flying blind.

But hey, at least it's Friday, right? Next week brings more earnings, hopefully some resolution on the shutdown (don't hold your breath), and plenty more opportunities for markets to either stage a comeback or continue this lovely descent into chaos. Either way, it'll be entertaining.

Stay sharp out there, and maybe pour yourself a drink this weekend. You've earned it.

🔥 What’s Heating Up This Week

Markets are moving - here's whats heating up with our partners:

✌️ Thanks for vibing with us.

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