Mega-Caps Drag Markets Lower
Market Recap for the Week of November 3, 2025
It was a broadly negative week for U.S. stocks, with the S&P 500 falling 2.15%. The declines were driven largely by weakness in the so-called “Magnificent Seven” tech giants. Nvidia dropped 9.59%, Microsoft lost 4.64%, and Meta declined 5.46%. Even Bitcoin couldn’t escape the pullback, falling 6.17% for the week.
Fortunately, for diversified investors who aren’t all-in on the mega-caps, other areas of the market held up better. Small-cap stocks, as measured by the S&P 600, managed a modest 0.16% gain, while developed international equities slipped only 0.27%. Bonds also posted positive returns for the week, offering some welcome stability amid equity market volatility.
There wasn’t much in the way of economic news this week due to the ongoing government shutdown, which delayed several key data releases—including Friday’s scheduled employment report. However, the ADP private payrolls report offered a limited snapshot, estimating that the economy added 42,000 jobs in October. While that’s still job growth, it’s a relatively weak number by recent standards.
Once the Bureau of Labor Statistics resumes operations, the coming data could show notable revisions. Given recent trends, the next few employment reports may point to a gradual uptick in the unemployment rate.
“The ‘Magnificent Seven’ tech giants led the market lower—but diversified investors fared far better.”
Chart of The Week
This week’s chart comes from Apollo Asset Management, using data from Revelio Labs, which tracks labor trends through alternative data sources. With official BLS data temporarily unavailable, these independent estimates provide a useful look under the hood of the labor market. As seen in the chart, job growth continues to slow.
The commentary in this blog is for informational purposes only and should not be taken as personalized investment advice
Sources: International Monetary Fund (IMF), Macrobond, Apollo Chief Economist
