AI Stocks Get A Reality Check

👋 Good morning,

This is The Global Hustlr, your passport to Global Wealth — we cut through the noise, in plain talk, no fluff, simplify Global Markets to help you invest and build lasting wealth.

Here’s what we got for you today:

☕️ Quick Brew: This Week’s Market Pulse

📉 Nasdaq dragged lower as tech and AI stocks took a breather
💼 Jobs growth slowed, but consumers are still spending
💻 Microsoft and Alphabet crushed earnings; Meta missed big after VR losses
🌍 Trump and Xi traded optimism at trade talks, easing tariff fears
⛏ Oil and gold took a step back amid rising risk appetite

🔑 The Big Stories

What a week! 

The market’s mood swung from confident to cautious, and back again. Tech stocks stumbled; meanwhile, trade talks and economic data dropped some serious clues for what’s next. 

Major stock indices experienced notable declines, with the S&P 500 and Nasdaq 100 facing the sharpest drops of 2.12% and 3.82% week-over-week, respectively. 

The Dow Jones Industrial Average and Russell 2000 ETF also fell, albeit more moderately, by 1.41% and 1.38%.

Bitcoin (BTC-USD) had a rough week, with the token briefly slipping below $100,000, its lowest level in six months.

On Friday, Bitcoin was sitting as much as 20% off its all-time high of above $126,000 notched on Oct. 6.

Wall Street has attributed the slide to early adopters offloading their large holdings. 

A critical factor underpinning this movement is the ongoing U.S. government shutdown, which has begun to exert tangible pressure on both the labor market and broader economic conditions.

Tech Takes a Breather

The technology sector bore the brunt of the market declines with a 4.39% drop, making it last week’s weakest performer

For months, tech stocks zoomed higher on AI hype and cloud dreams. 

This week, investors hit pause, the big AI names that led the market higher took it on the chin. Nvidia has shed $440 billion in market value since Monday, its worst three-day stretch since the DeepSeek selloff. Palantir $PLTR is down about 12% this week despite beating earnings. 

Concerns over lofty valuations and uncertainty surrounding Federal Reserve policy appear to have motivated this shift. 

Why it matters: Corrections like this are normal after big runs. Use this time to trim overexposed tech and look for value in sectors others passed on.

Jobs and Spending: Mixed Signals

ADP reported a modest 50,000 new jobs – better than nothing, but clearly slowing. Companies announced plans to cut more than 153,000 jobs last month, nearly triple September’s number

Meanwhile, retail sales and service sector numbers showed people are still opening their wallets. 

The economy isn’t roaring, but it’s not heading for the exit either.

Why it matters: A cooling job market may keep the Fed cautious. But steady spending means the economic engine is still running. Balance exposure to cyclical consumer stocks and defensive names accordingly.

Government Shutdown

Day 38 makes this the longest shutdown in U.S. history. 

The FAA ordered 10% traffic cuts at 40 airports starting Friday. Some lawmakers think a deal could happen this weekend.

Each week shaves 0.1 to 0.2 percentage points off quarterly GDP

No official jobs or inflation data, forcing markets to guess using private reports.

💡 What Does This Mean for Your Portfolio?

• Take profits or rebalance if you’ve loaded up on hot AI or chip plays

• Keep tabs on Fed signals—rate stability helps, but any surprise could jolt markets

• Add defensive sectors like energy and consumer staples for balance

• Watch trade developments carefully; they affect currency and commodity prices

• Mix in small caps cautiously for diversified growth exposure

👉 Tip: Reassess your risk tolerance now before earnings season truly ramps up

📣 Final Sip

The key? Stay curious, stay calm, and hustle smart. Market ups and downs are part of the journey. Keep your eyes on the long game, and let lessons guide your moves.

🚀 Join the Movement

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