Nasdaq Has Its Worst Week Since April

Summary

WSJ What's News – PM Edition

Episode Date: November 7, 2025
Episode Title: Nasdaq Has Its Worst Week Since April
Host: Alex Osilow
Podcast: The Wall Street Journal – What's News

---

Overview

This episode delivers a succinct recap of a tumultuous week in financial markets with a particular focus on the Nasdaq's sharp decline, the ripple effects of the ongoing U.S. government shutdown (especially on air travel), and mounting political tensions over U.S. immigration enforcement. Additionally, the show analyzes Microsoft’s efforts to chart its own AI course, potentially independent of OpenAI. The episode closes with quick updates on supply chain developments and changing consumer patterns at major restaurant chains.

---

Key Discussion Points & Insights

1. Nasdaq's Steep Decline and Market Jitters

• AI-Fueled Volatility: The episode highlights how optimism around artificial intelligence previously drove markets higher; now, doubts about sustainable profits are causing a pullback.
  • Hannah Aaron Lange (WSJ Markets Reporter):

    “The AI trade kind of dominates the entire stock market right now… The big question that investors have is, is all of this money that we're spending going to be worth it?” (01:27)

• Market Summary:
  • Nasdaq: Worst week since April, down 3% over the five sessions
  • S&P 500: Down 1.6%
  • Dow Jones: Down 1.2%
  • Daily trading mixed, with slight recoveries in parts of the market (02:02)
• Driving Fears:
  • Investor jitters around high stock valuations and the uncertain returns from massive tech investments in AI
  • Negative sentiment worsened by government data delays due to the shutdown
  • University of Michigan survey: Consumer sentiment in November at near record lows

---

2. Government Shutdown and Flight Disruptions

• FAA Mandated Flight Cuts:
  • 4% reduction at 40 airports already underway; could escalate to 10% by next Friday, potentially reaching as high as 20% if the shutdown continues (02:35–03:24)
  • Transportation Secretary Sean Duffy:

    “If this shutdown doesn't end relatively soon… we may again move from 10% to 15%, maybe to 20[%].” (03:07)

• Impact on Travelers:
  • Hundreds of canceled flights, growing delays expected
  • Advice: Monitor airline communications closely; airlines typically rebook passengers, but travelers can accept or reject new flight assignments (03:24)

---

3. Infighting Over US Immigration Tactics at DHS

• Policy Divide at DHS:
  • Two camps at the Department of Homeland Security (DHS) over deportation tactics:
    • Traditionalists (mainly at ICE): Favor targeted lists, prioritize criminals, prefer less public-facing operations (04:12)
    • “Splashy Raids” Advocates: Led by Border Patrol veteran Greg Bovino, favor highly public raids with social media videos, now seen in cities like LA and Chicago
      • Michelle Hackman (WSJ Immigration Reporter):

        "They were really crucially putting those raids on social media, posting videos… People think that’s ICE… But it actually is the Border Patrol carrying all that out." (04:12)

• DHS Official Stance:
  • No acknowledged divisions; plan to carry out 600,000 deportations by end of Trump’s first year (05:27)
• Political Ramifications:
  • Tension between Trump supporters wanting visible actions vs. discomfort among broader electorate with aggressive tactics
  • Recent shift among Hispanic voters back toward Democrats possibly tied to high-profile immigration enforcement (05:56)
    • Michelle Hackman:

      “The question is whether ICE raids become one of the most salient issues to those voters or whether they're thinking about other things when they go to the ballot box next year.” (06:16)

---

4. Microsoft’s Evolving AI Strategy—Possible Split from OpenAI

• New Vision:
  • Microsoft’s AI chief, Mustafa Suleiman, outlines a push for AI self-sufficiency, prepping for a future less reliant on OpenAI.
    • Mustafa Suleiman (Microsoft AI Chief):

      “We are free to develop our own superintelligence and become AI self-sufficient…that's like a mission-critical objective which the board has set.” (07:40)

• Strategic Shift:
  • Microsoft launching a “superintelligence team”
  • Prioritizing real-world problem solving (healthcare, science, clean energy) over conversational, anthropomorphized AI
    • Sebastian Herrera (WSJ Tech Reporter):

      "Microsoft's approach is that… interacting with AI shouldn't be like talking to a human being. We shouldn't over empathize with it. It's actually here to help us solve the world's hardest problems." (08:07)

  • Despite ongoing partnership (and investment), Microsoft preparing to stand alone if OpenAI ceases to exist by 2030s (09:04)
  • Internally, Microsoft still seen as technologically behind OpenAI
    • Sebastian Herrera:

      “Microsoft employees feel like they're still years away from being able to replace OpenAI technology with Microsoft's own technology.” (09:58)

• About Mustafa Suleiman:
  • London native, co-founded DeepMind (acquired by Google), then Inflection AI, now AI chief at Microsoft

---

5. Other Noteworthy Business Stories

• Microchip Supply Chain Thaw:
  • Nixperia chip shipments resume from China; supply threatened after Dutch seizure of company due to geopolitical tensions
  • Chips essential to the auto industry; resumption attributed to diplomacy following last week’s Trump-Xi meeting (11:00)
• Consumer Trends – Wendy’s Closures:
  • Wendy’s announces closure of hundreds of US restaurants out of 6,000, citing pressure on low-income consumers
  • Signals belt-tightening as restaurant goers cut spending and visits (11:20)

---

Notable Quotes & Timestamps

• On AI Market Jitters:

  • Hannah Aaron Lange (01:27):

    “The big question that investors have is, is all of this money that we're spending going to be worth it?”

• On Escalating Flight Cuts:

  • Sean Duffy (03:07):

    “If this shutdown doesn't end relatively soon, the consequence of that is going to be more controllers don't come to work. And then… we may again move from 10% to 15%, maybe to 20[%].”

• On Deportation Tactics:

  • Michelle Hackman (04:12):

    “They were really crucially putting those raids on social media, posting videos… People think that’s ICE… But it actually is the Border Patrol carrying all that out.”

• On Microsoft–OpenAI Rift:

  • Mustafa Suleiman (07:40):

    “We are free to develop our own superintelligence and become AI self-sufficient… that's like a mission-critical objective which the board has set.”

  • Sebastian Herrera (08:07):

    "Interacting with AI shouldn't be like talking to a human being… It's actually here to help us solve the world's hardest problems."

---

Segment Timestamps

• AI Market & Nasdaq Selloff: 00:34 – 02:40
• Airport Delays & Flight Cancellations: 02:40 – 03:50
• Immigration Enforcement Infighting: 04:12 – 06:38
• Microsoft’s AI Independent Strategy: 07:26 – 10:55
• Supply Chains & Restaurant Spending: 11:00 – 11:40

---

Tone & Style

The podcast maintains a brisk, fact-driven style, with clear transitions and an emphasis on actionable news and expert analysis. Quotes from sources and WSJ reporters offer deeper insight and reflect the slightly urgent, analytic tone of a high-paced news roundup.

---

This summary covers all critical topics and key moments, providing both substance and context for listeners who may have missed the episode.

Transcript

[Dynatrace Announcer]

This podcast is brought to you by Dynatrace, the leader in AI Powered observability. With analytics, automation and next level intelligence on one unified platform, Dynatrace delivers the visibility and real time insights you need to deliver better, more secure software, successful AI initiatives and innovation at the speed of business. Turn data into decisions that drive your business forward with AI powered observability where it counts. Learn [e-mail] WSJ that's www. N a T-R-A c e.com WSJ Foreign.

[Alex Osilow]

Microsoft is laying out its AI vision separate from longtime partner OpenAI.

[Sebastian Herrera]

Microsoft's goal is to not have to rely on OpenAI for any of its tech. That's what they're working toward, but it's going to take some time for them to separate from OpenAI.

[Alex Osilow]

Meanwhile, investors jitters around artificial intelligence send the Nasdaq to its worst week since April, and travelers pain over canceled flights might get even worse. It's Friday, November 7th. Alex I'm Alex Osilow for the Wall Street Journal. This is the PM edition of what's news, the top headlines and business stories that move the world today. It's been a dramatic week in markets. The AI boom has driven stocks sky high, and this week investors confidence in that wavered. Here's Journal markets reporter Hannah Aaron Lange.

[Hannah Aaron Lange]

Obviously, the AI trade kind of dominates the entire stock market right now, and it's being powered by these major tech companies that are spending billions and billions of dollars to rapidly build out these capabilities. And the big question that investors have is, is all of this money that we're spending going to be worth it? Is the price that I'm paying for this stock justified by what those profits will look like down the line? And stock valuations are quite high right now. We've seen those jitters kind of reach a fever pitch and spread throughout the market and ultimately drive stocks lower.

[Alex Osilow]

And reports on mounting job cuts and anxious consumers caused worries, especially in the absence of economic data from the government during the shutdown. A monthly survey from the University of Michigan shows consumer sentiment in November falling to near record lows. The Nasdaq had its worst week since April, closing down 3% over the five trading sessions. For the week, the S&P 500 dropped 1.6%, while the Dow ended down 1.2%. For today alone, though, trading was mixed after some steep declines earlier in the week, with small gains for the S and P and the Dow and a slight retreat in the Nasdaq. If you're traveling today, chances are you're feeling the effects of flight delays and cancellations. The Federal Aviation Administration has ordered traffic cuts at 40 airports to keep skies safe during the government shutdown. It's starting with traffic cuts of 4% today. And airlines have canceled hundreds of flights. That's not that big a deal by historical standards, but cuts are supposed to grow to 10% by next Friday, and then things might get even worse.

[Sean Duffy]

So if this shutdown doesn't end relatively soon, the consequence of that is going to be more controllers don't come to work. And then we're going to have to continue to assess the pressure in the airspace and make decisions that may again move us from 10% to 15%, maybe to 20.

[Alex Osilow]

That was transportation Secretary Sean Duffy on Fox News this afternoon. Flight reductions are expected to continue until the end of the shutdown. If you're flying soon, keep an eye on your email or airline app for updates. If your flight gets canceled, the airline will typically put you on another flight, though you have the option to accept or reject it. The White House is pushing to ramp up deportations, and that's causing infighting at the Department of Homeland Security over which tactics to use to remove people from the U.S. that's according to people familiar with the matter. Michelle Hackman covers immigration policy for the Journal and is here now with more. Michelle, as I understand it, there are two kind of schools of thought here. What is each one saying and who, who are the big names in each at dhs?

[Michelle Hackman]

They're traditionalists. And a lot of those people are at ice and they believe they have the tools to be able to carry out Trump's mass deportation. And that involves using policing methods like coming up with target lists of immigrants, trying to catch them outside of their homes, trying to go after criminals first because it's easier to deport those people. Their tactics and methods were not big and splashy enough for some at the top of dhs, like Kristi Noem. And so we've seen some other approaches emerge, too. Greg Bevino, he's a Border Patrol veteran. Steven started running this big campaign in Southern California where he was taking his Border Patrol agents and doing like big raids on farms and factories. They were really crucially putting those raids on social media, posting videos. And so Kristi Noem asked Greg Bovino to go lead operations in LA and later brought him to Chicago. You've probably seen tons of videos of people getting arrested on the street in Chicago, getting tackled. And people think that's ICE because that's who does deportations Right. But it actually is the Border Patrol carrying all that out.

[Alex Osilow]

And what has DHS said about this publicly?

[Michelle Hackman]

A DHS spokeswoman told us and has said publicly numerous times that there are no divisions of dhs, that they're basically rowing in one direction and that they expect to carry out about 600,000 deportations by the end of Trump's first year in office.

[Alex Osilow]

I'm curious about the political implications here. So there was a WSJ poll that was published in July that showed that voters said they supported President Trump's immigration curbs but said that the tactics went too far. What does this mean for President Trump?

[Michelle Hackman]

The mass deportation is a really salient question for Trump's supporters. And so it could have a dampening effect of support if Trump is seen as not meeting that goal. Will people be satisfied with splashy tactics or are they ultimately going to want to see numbers? On the other end of things, we've seen really preliminary evidence that some of these immigration raids have had a dampening effect on Hispanics moving toward the Republican Party. We saw swing back among Hispanic voters toward Democrats in elections this week. The question is whether ICE raids become one of the most salient issues to those voters or whether they're thinking about other things when they go to the ballot box next year.

[Alex Osilow]

That was WSJ reporter Michelle Hackman. Thanks, Michelle.

[Michelle Hackman]

Thank you.

[Alex Osilow]

Coming up, what does Microsoft's AI program look like without OpenAI? That's after the break.

[Gunjan Banerjee]

Hi, this is Gunjan Banerjee.

[Telus Demos]

And this is Telus Demos. We're reporters at the Wall Street Journal and The hosts of WSJ's take on the Week.

[Gunjan Banerjee]

Take on the Week is a weekly show that gives listeners a leg up in the world of markets and investing.

[Telus Demos]

From the Fed's moves to market bubbles, we div into the biggest deals, key players, and business news ahead.

[Gunjan Banerjee]

If you're looking for more news and tools that can help you navigate the markets, consider becoming a subscriber to the Wall street journal.

[Telus Demos]

Visit subscribe.WSJ.com take on the week to subscribe now.

[Alex Osilow]

Microsoft and OpenAI have had an artificial intelligence partnership for years. Now, though, Microsoft's top artificial intelligence executive has laid out a new vision for the company's AI ambitions. Here's Microsoft's AI chief, Mustafa Suleiman.

[Mustafa Suleiman]

We are free to develop our own superintelligence and become AI self sufficient. And for a company, you know, with $300 billion of revenue and, you know, 3 trillion of market cap been around for 50 years, we have to be Self sufficient and that's, that's like a mission critical objective which the board has set.

[Alex Osilow]

WSJ tech reporter Sebastian Herrera joins us now. So Sebastian, what's in Microsoft's new AI plan and how does it diverge from OpenAI?

[Sebastian Herrera]

Yeah, so Microsoft is creating this new super intelligence team and the way that they're diverging from OpenAI is if you think of OpenAI, they're really known for conversational AI and it's like you're talking to a human being. And Microsoft's approach is that we're not trying to work so much on trying to have these conversations where it's like human like if anything they say talking to AI and interacting with AI shouldn't be like talking to a human being. We shouldn't over empathize with it. It's actually here to help us solve the world's hardest problems. It's here to help us solve health care and science and clean energy problems. And that's how they're trying to separate what they're doing from what their partner OpenAI is doing.

[Alex Osilow]

So Microsoft and OpenAI are still partners for now, but sounds like they're also going to be a bit more of competitors. Do the two expect to one day separate completely and if so, what would that take?

[Sebastian Herrera]

It is a bit of an awkward relationship because Microsoft still relies on OpenAI for a lot of its tech. Microsoft and OpenAI are still really close partners and they still have a contract that goes through at least 2032. Microsoft is also a huge investor in OpenAI, so they're still very much tied financially to OpenAI. However, part of the reason that Microsoft is trying to create its own tech is that if OpenAI doesn't exist in five years, Microsoft still wants to have their player in the game. They still want to be able to make their own impact in AI. Microsoft's goal is to not have to rely on OpenAI for any of its tech. That's what they're working toward. That's what this new superintelligence team at the company is working toward. But it's going to take some time for them to separate from OpenAI.

[Alex Osilow]

We heard earlier from Microsoft's AI chief, Mustafa Suleiman. Who is he and where is he coming from on AI?

[Sebastian Herrera]

He has a pretty interesting journey. He's from London. He co founded DeepMind which was bought by Google and then he went on to found inflection AI which he was at before Microsoft hired him to become its AI chief executive. So he's been in the industry for a long time. He hasn't necessarily ever created a hit product per se, but he is thought of as someone who's really trying to push this tech forward. I should note that Microsoft is seen as being pretty behind OpenAI, and internally, Microsoft employees feel like they're still years away from being able to replace OpenAI technology with Microsoft's own technology. Microsoft has really big ambitions. They talk a very big sort of game, but they're not necessarily matching it yet.

[Alex Osilow]

That was WSJ reporter Sebastian Herrera. Thanks so much, Sebastian.

[Sebastian Herrera]

Thank you.

[Alex Osilow]

Shipments of Nixperia microchips are leaving China again, easing a shortage of simple but ubiquitous parts that threatened to paralyze the auto industry. Beijing had stopped exports of Nixperia chips after the Dutch government seized the company from its Chinese owner. The diplomatic turning point on the chips came after last week's meeting between President Trump and Chinese leader Xi Jinping. And Wendy's said it would close hundreds of its roughly 6,000 US restaurants. The company also said low income consumers in particular are facing challenges right now in the restaurant industry. Some chains have reported consumers are cutting spending, making fewer trips and smaller purchases. And that's what's news for this week. Tomorrow you can look out for our weekly Markets wrap up, what's News in Markets Then on Sunday, we'll be featuring an episode of Our Sister podcast, WSJ's take on the Week. It digs into one of the biggest business stories at the moment, Paramount Skydance's pursuit of Warner Bros. Discovery. That's in what's New Sunday. And we'll be back with our regular show on Monday morning. Today's show is produced by Pierre Bienname and Zoe Kulkin with supervising producer Tali Arbel. Michael Lavall wrote our theme music. Jessica Fenton is our technical manager, Aisha El Mouslim is our development producer, Chris Insinsley is our deputy editor. And Falana Patterson is the Wall Street Journal's head of news audio. I'm Alex Osola. Thanks for listening.