Wall Street Tumbles as AI Stock Selloff Deepens and Government Shutdown Weighs on Markets

The Dow Jones Industrial Average fell sharply on Thursday, losing about 400 points and marking its lowest level in nearly two weeks. The decline came as investors continued to retreat from major artificial intelligence and tech-related shares, signaling a broader cooling in one of the market’s hottest sectors.

The pullback followed weeks of record-breaking highs, with the index now slipping below the 47,000 mark after reaching above 48,000 in late October. Major technology companies—once the driving force of market gains—faced renewed selling pressure as investors reassessed whether soaring valuations in the AI sector remain sustainable without clear evidence of significant revenue growth.

Adding to market anxiety, fresh data pointed to a sharp rise in U.S. job losses. Private reports indicated over 150,000 job cuts in October, the highest figure since April and one of the worst readings outside of the pandemic period. The figures have rattled confidence in the labor market just as the country faces deep political gridlock.

The ongoing U.S. government shutdown—now the longest in American history—has further complicated the outlook. With official data collection halted, investors have been forced to rely on private datasets that are often volatile and less reliable. The data blackout has amplified uncertainty, fueling fears about the true state of the economy.

As markets absorb these overlapping shocks—from the tech sector selloff to labor market stress and a paralyzed federal government—investor sentiment has turned decisively cautious. Many now question whether Wall Street’s months-long optimism, fueled by artificial intelligence and resilient growth, can withstand a reality check driven by political dysfunction and cooling corporate profits.