November 7, 2025

Markets:

Stock futures moved lower Friday after a pullback in the market’s biggest technology names led to a losing session for U.S. equities — and put the major averages on pace for a losing week.

Major U.S. stock averages closed lower across the board in the previous session, with the tech-heavy Nasdaq Composite notably dropping 1.9% and the 30-stock Dow closing lower by almost 400 points.

The three benchmark indices are each in the red this week, with losses accumulating on-and-off since Tuesday when major AI names declined on fears about elevated tech sector valuations — which have also contributed to a highly concentrated market. The S&P 500 is down 1.8% week to date, while the 30-stock Dow Jones Industrial Average and Nasdaq have lost nearly 1.4% and 2.8% during the period, respectively.

The Bureau of Labor Statistics normally would release the nonfarm payrolls report Friday. For the second month in a row, however, it is unable to do so due to the record-breaking U.S. government shutdown. Economists surveyed by Dow Jones had been expecting the report to show a decline of 60,000 jobs and an increase in the unemployment rate to 4.5%.

The Senate is expected to vote Friday on advancing a House-passed stopgap funding measure. Senate Majority Leader John Thune has said, “My hopes and expectations are always that we’re going to have enough Democrats to actually proceed, but I don’t know. We’ll see.”

 

Portfolio:

We enter the final session of the week holding setups in METU, A, TSLL, and WFC. This has been a very difficult week for small caps and obviously our performance with the swings. Want to be smart here after such a great period we had and we are looking to add positions we feel will run with force on the swing back up.

Now, let’s put this all into perspective.

A soft premarket on a Friday isn’t necessarily bad news — in fact, it can set up the kind of gap-down-to-green reversal that often defines market turning points. What we don’t want is a strong open that fades into the weekend. The stronger setup remains the pullback that finds buyers and closes firm.

Historically, government shutdowns have had zero lasting impact on market direction. They create short-term volatility and emotion, but the trend eventually resumes right where it left off.

This environment mirrors several moments over the past six months where sentiment broke down just before the next strong leg higher. It’s the same playbook: push traders to give up positions, trigger stops, and then force a rapid chase once the market turns.

Patience remains key. Red days are uncomfortable, but they strengthen the foundation for the next move. This phase of Gov shutdown is closer to the end than most believe – and when the reversal hits, it will come fast.  We will then absolutely attack the close of the year!