Tesla, Nvidia, Palantir weigh down US tech stocks

US stocks fell on November 7, putting the S&P 500 and Nasdaq 100 on track to end a three-week winning streak as concerns over high tech valuations weighed on investors.

The S&P 500 dropped 0.8%, and the Nasdaq 100 slid 1.2% in early trading.

A delayed release of official jobs data due to the US government shutdown left investors relying on private data, which suggested a softening labor market.

Challenger, Gray & Christmas reported the highest number of October job cuts in over 20 years, with AI and cost-cutting driving reductions.

Results from Palantir, Super Micro Computer, and Qualcomm disappointed investors, adding to tech sector losses.

Hedge fund manager Michael Burry revealed bearish positions on Palantir and Nvidia, raising further worries about tech valuations.

Tesla shares fell after shareholders approved a US$1 trillion pay package for Elon Musk, conditional on meeting performance goals.

🔗 Source: Bloomberg

🧠 Food for thought

Implications, context, and why it matters.

Tech valuations lean on fragile fundamentals

Nasdaq 100’s estimated P/E is 33.98, using the QQQ exchange-traded fund (ETF) that tracks the Nasdaq 100, above its five-year average range of 27.26 to 32.94 1. That gap leaves the index open to multiple compression if earnings slow or if the 10-year Treasury yield climbs. Results at Palantir, Super Micro Computer, and Qualcomm then added pressure.
Recent selling signals concern that prices bake in flawless earnings paths. The 10-year Treasury (a benchmark US government bond) offers safer yield without execution risk, so investors recheck whether profits support rich multiples.

Private labor data gains clout as official stats lag

A government shutdown delayed official jobs data 2. Investors looked to GlobalData, a market intelligence firm that uses LinkUp’s real-time postings. LinkUp is a jobs database that harvests listings directly from employer sites. GlobalData says it beat economist consensus 65% of the time over the past two years and cut forecast errors by 30% 3. That edge helps data aggregators sell premium feeds to hedge funds and large companies.
LinkUp indexes jobs across 195 countries with daily updates 4. Revelio Labs, a workforce analytics firm, builds metrics from more than 100 million U.S. professional profiles and publishes hiring and attrition rates 5. Asset managers seeking early signals or companies benchmarking workforce trends can justify subscriptions to multiple providers, which widens the market for labor intelligence platforms.