There is chaos in America, people are constantly losing their jobs, and the challenges for the Trump administration are increasing. The deepening economic crisis in America is likely to impact all countries.
History shows that the first signal of crisis is seen in the stock market, and this is what is currently happening with the US stock market. A massive sell-off is being witnessed. On Thursday, November 6th, the US stock market was hit by a massive earthquake. The S&P 500 fell by approximately 1.1%. The Nasdaq index slipped by 2%, and the Dow Jones Industrial Average also saw a decline of approximately 0.8%. Prior to this, on November 5th, the US stock market was in a downtrend.
If we look for the reasons for this decline, three main factors emerge.
1. The bad condition of AI stocks: It is being said that the bubble surrounding Artificial Intelligence (AI) is now bursting. Investors are becoming increasingly concerned about AI companies. The question arises as to what has suddenly led to the term “bubble” being used in relation to AI.
Large technology companies, especially AI-themed stocks, are experiencing high valuations, and investors are wary of their ability to deliver returns in the future. While AI-related stocks have seen a strong rally over the past two years, growth hasn’t been consistent.
Investors fear that the surge seen by some large tech companies isn’t being matched by growth, meaning valuations have oversold. Therefore, despite some AI-related companies delivering strong results, their shares have seen significant declines.
2. Massive layoffs at US companies: The threat of a recession in the US economy is exacerbating the employment crisis. In October 2025 alone, approximately 15.3 million people lost their jobs in the US. This is the largest job cut in any October in the last 20 years. So far, approximately 1.1 million jobs have been lost in 2025, an increase of approximately 65% compared to a year earlier.
These layoffs are not limited to just one or two sectors; many industries, including technology, retail, the service sector, warehousing, and logistics, are being affected. Investors are now less confident in the AI theme, which is why this sector is experiencing a significant impact. Rising costs and growing economic uncertainty are driving companies to increasingly resort to cost-cutting. With the advent of AI, many jobs are now being replaced by automation.
3. Pressure on the Economy: The possibility of rising interest rates has increased pressure on the US economy. America’s debt has exceeded $38 trillion, reaching approximately 324% of GDP. If the US fails to address this problem in a timely manner, it could rapidly face not only economic but also political and social challenges. There is also a growing fear of rising inflation.
