Stock Market Faces Setbacks Amid Earnings Volatility and Tesla Pay Approval

This week, the stock market experienced significant turbulence as mixed earnings reports and key corporate developments reshaped investor sentiment. Major indices saw declines, with the Nasdaq slipping below its 21-day moving average, the S&P 500 testing its 50-day line, and the Russell 2000 small-cap index dropping sharply. While some leading stocks delivered strong results, many retreated to or below prior buy points.

Palantir Surges in Revenue but Stock Falls
Palantir Technologies reported impressive third-quarter growth, with adjusted earnings rising 110% year-over-year and revenue climbing 63% to $1.18 billion. Commercial and government divisions both performed well, marking the second consecutive quarter of accelerating gains. Despite the strong fundamentals, Palantir’s stock fell from record highs, reflecting cautious investor sentiment.

AI and Chip Stocks Hit a Rough Patch

Several AI-focused chip stocks saw pullbacks after their earnings reports. Advanced Micro Devices, Astera Labs, Arm Holdings, and Nvidia all beat expectations, yet shares struggled to maintain gains. The AI stock trade faced renewed volatility, highlighting the challenges of sustaining momentum in a crowded market.

Tesla Shareholders Approve Landmark CEO Pay Deal
Tesla shareholders overwhelmingly approved Elon Musk’s $1 trillion compensation plan. Musk outlined ambitious plans for vehicle production, including the launch of the Tesla Roadster 2 in April 2026 and near-term advances toward fully autonomous driving. Despite the approval, Tesla’s stock experienced a weekly decline after a brief early-week rally.

Mixed Earnings Across E-Commerce, Quantum, and Tech

Shopify reported a sharp drop in EPS, missing expectations despite modest revenue and merchandise volume growth, sending shares lower. Quantum computing companies IonQ and D-Wave reported strong revenue gains but larger-than-expected losses, leading to weekly declines. Meanwhile, AI-focused bitcoin miners like Iren and Cipher Mining surged after cloud-computing partnerships with Microsoft and Amazon.

Biotech and Pharma: Winners and Losers

Drugmakers reported a range of results. Pfizer and AstraZeneca maintained or raised guidance, while Novo Nordisk reduced its outlook for the third time this year. The TrumpRx program now offers major weight-loss drugs at 68%-74% below list prices for Medicare patients. Biotech stocks saw mixed performances: Vertex and TG Therapeutics exceeded forecasts, but Sarepta, Biohaven, and UniQure faced setbacks due to failed trials or regulatory hurdles.

Other Market Highlights

Uber’s stock fell despite strong gross bookings, reflecting concerns about rising investment in autonomous vehicle technology. DigitalOcean and Datadog delivered robust earnings, while Arista Networks and Fortinet posted mixed results. Semiconductor and AI plays Lumentum and Super Micro Computer showed strong revenue growth, although guidance for some companies remained cautious. In the nuclear sector, Talen Energy posted a strong quarter, while peers Constellation Energy and Vistra missed estimates.

Overall, this week’s market activity underscores the continued volatility in both growth and tech sectors, with investors navigating a mix of strong earnings, strategic corporate moves, and ongoing macroeconomic uncertainty.