Wall Street hit by AI and employment concerns

Tech and Growth Stocks Penalized by the Market

The downturn was particularly severe for companies in the technology and data management sectors. CarMax experienced the most dramatic decline of the session, plummeting 24.33% following the unexpected announcement of its CEO's departure, effective in December. DoorDash also crashed 17.45%, with the market reacting negatively to the delivery platform's aggressive investment plans for 2026, despite an upwardly revised guidance.

This reaction demonstrates how investors are becoming more critical of capital expenditures promised by managers, especially in the context of an economic slowdown. Paycom dropped 10.72% after slightly missing earnings per share expectations, reporting $1.94 against the anticipated $1.96, although revenue slightly exceeded forecasts. Content management giant MercadoLibre lost 7.54%, while Advanced Micro Devices, one of the champions of the AI boom, saw its stock fall 7.27% despite posting quarterly results that exceeded expectations. Palantir Technologies, which sparked a debate on excessive valuations earlier in the week with its 700 times earnings ratio, fell 6.84% after the announcement of a short position by the famous investor Michael Burry, a notable figure from the 2008 crisis.

The Few Winners: Core Technology and Defensive Sectors

Some tech stocks nevertheless showed remarkable resilience. Datadog stood out as the undisputed star of the session, surging by 23.13%, driven by solid third-quarter results marked by a 28% year-over-year revenue growth and an expansion of its non-GAAP operating margin to 23%. The number of customers generating at least $100,000 in annual recurring revenue increased by 16%, indicating a consolidation of its observability platform among large organizations. Parker Hannifin climbed 7.75% due to strong fiscal results highlighted by a record revenue of $5.1 billion and an adjusted operating margin up 170 basis points. The energy sector also held its own.

Air Products rose 8.94%, benefiting from sustained demand in its traditional business sectors. Texas Pacific Land jumped 10.02% following the announcement of strategic acquisitions in the Permian Basin and impressive operational results, with record oil and gas royalty production. Moderna saw a modest increase of 3.27%, while Expedia advanced 2.75% after raising its outlook for the year, reflecting stronger-than-expected travel demand.

Major Indices Trapped by Economic Uncertainty

The entire market reflected investors' ambivalence in the face of a complex economic environment. The Dow Jones fell by 0.84% to 46,912.30 points, showing greater resilience than its tech counterparts. This disparity highlights the growing gap between defensive sectors and heavily weighted growth stocks.

Massive job cuts documented in October, up 175% from the previous year, with over a third directly attributed to automation through artificial intelligence, have reignited concerns about the viability of the US labor market. These figures contradict the optimistic narrative that AI would simply boost productivity without destroying jobs. Meanwhile, the prolonged US federal government shutdown, now the longest on record, continues to obscure the macroeconomic picture by paralyzing the release of official statistical reports. The Federal Reserve thus finds itself in a delicate position, forced to navigate both signals of labor market weaknesses and persistent inflationary pressures, while investors remain highly attentive to the future direction of monetary policy.