Nasdaq Weekly Decline Amid Extreme Fear Sentiment and Consumer Confidence Crisis

This analysis is based on the Benzinga report [1] published on November 10, 2025, which reported significant market weakness driven by extreme investor fear and deteriorating consumer confidence.

The Nasdaq Composite (^IXIC) experienced substantial volatility during the week of November 3-7, 2025, declining approximately 3.5% from 23,834.72 to 23,004.54 [0]. The broader market weakness was confirmed by other major indices, with the S&P 500 falling 1.8% and the Dow Jones declining 0.7% over the same period [0]. As of November 12, 2025, the Nasdaq continues to show weakness, trading at 23,412.69, down 0.24% on the day [0].

The CNN Money Fear and Greed Index reading of 21.1 represents extreme fear, though it showed slight improvement from the prior 18.3 reading [1]. This sentiment deterioration correlates with the University of Michigan’s consumer sentiment index sinking to its lowest level since June 2022 [1]. More concerning, the current conditions subindex dropped to 58.6, the worst reading since the survey began in 1951 [3].

Despite the overall fearful sentiment, sector performance data reveals significant investor rotation patterns [0]:

• Growth-oriented sectors
  : Healthcare (+1.55%), Communication Services (+1.27%)
• Defensive sectors under pressure
  : Utilities (-1.56%), Real Estate (-0.52%), Financial Services (-0.29%)

This divergence suggests selective positioning rather than broad-based risk aversion.

The record-low current conditions reading of 58.6 represents a fundamental economic concern that extends beyond typical market volatility [3]. This 24% year-over-year decline from October 2024’s 70.5 suggests deep-seated consumer anxiety that could impact spending patterns and corporate earnings [3].

While Fear & Greed readings below 25 historically often coincide with market bottoms, the current fundamental weakness in consumer sentiment warrants caution [1]. The combination of extreme fear sentiment and deteriorating consumer confidence creates a complex risk environment that differs from typical market corrections.

The sector rotation toward growth areas despite extreme fear suggests sophisticated market participants are finding selective opportunities [0]. This indicates that the market may be distinguishing between short-term sentiment and longer-term growth prospects.

1. Consumer Spending Pressure
   : The record-low current conditions reading suggests potential weakness in retail and consumer discretionary sectors [3]
2. Corporate Earnings Impact
   : Q4 earnings season could face downward pressure due to weaker consumer demand
3. Market Volatility
   : The Fear & Greed Index in extreme fear territory typically correlates with increased volatility [1]

Decision-makers should closely track:

• University of Michigan November Preliminary Data
  (scheduled for November 7, 2025) [3]
• Federal Reserve Communications
  for policy guidance
• Q3 Earnings Results
  from major retailers and consumer companies
• Labor Market Reports
  for employment and wage growth data

Historical patterns suggest that extreme fear readings can present buying opportunities, but the current fundamental weakness requires selective approach [1]. The sector performance data indicates that healthcare and communication services may offer relative resilience [0].

• Nasdaq Performance
  : 3.5% weekly decline (Nov 3-7), currently trading at 23,412.69 [0]
• Fear & Greed Index
  : 21.1 (Extreme Fear), slight improvement from 18.3 [1]
• Consumer Sentiment
  : Current conditions at 58.6, lowest since 1951 [3]
• Sector Leaders
  : Healthcare (+1.55%), Communication Services (+1.27%) [0]
• Individual Stocks
  : FLR trading at $46.77 (+3.12%), FOXF at $15.06 (+0.20%) [0]

The analysis reveals a market environment characterized by extreme fear sentiment but selective opportunity identification. The deteriorating consumer confidence represents the most significant fundamental concern, requiring careful monitoring for potential economic impact.