Tech titans tumble as doubts cloud the AI dream
Just yesterday, eyes darted across trading screens as the US equity market’s relentless high-wire act faltered. Investors knew technology stocks had been riding a wave of optimism, their valuations inflated by artificial intelligence excitement. But by late afternoon, the mood changed. The sell-off began quietly and then thundered through portfolios, a reminder that no rally lasts forever.
A sweeping chill ran through the Nasdaq, pulling it down 1.9%. The S&P 500 lost 1.1%, and the Dow slid 0.8%, wiping billions from flagship tech players like Nvidia, Amazon and Palantir. “There’s a real fear of an AI correction,” said Louis Navellier, founder of Navellier & Associates. “If it happens, it will sweep the whole sector. But personally, I don’t plan on selling Nvidia or Palantir just yet.”
The sentiment was echoed by Kristen Slo, chief at Apollo Management, who remarked, “The S&P today is historically extreme in its valuations.” Even Warren Buffett’s preferred market metric, which compares the total value of US stocks to economic growth, is sounding a caution, a signal the bull market could soon hit a wall.
The shockwaves were amplified by news that over 153,000 US workers lost their jobs in October, a jump not seen since 2003. The government shutdown left economic data thin on the ground, forcing traders to place outsized bets on every private payroll release. “We need reliable numbers before making decisions. The shutdown makes that nearly impossible,” lamented one New York-based strategist.
Headlines shift as layoff surge spooks the faithful
Mega-cap tech wasn’t the only victim. Amazon’s third-quarter results drove its stock lower by almost 3%. Palantir shed nearly 7% in a single afternoon, and Tesla’s shares slipped ahead of a pivotal vote on CEO Elon Musk’s pay package. “AI hype cracked today,” said Sean Conlon, market analyst at CNBC, capturing the mood that had grown bleak across trading floors.
Qualcomm and AMD faced similar heat after releasing earnings, both sliding over 4%. Volatility ticked higher, with the VIX jumping 11% as investors crowded into traditional safety nets like US Treasuries and the Japanese yen.
Meanwhile, bitcoin held steady near the $100,900 mark, giving a glimmer of hope for those betting on digital assets. The US dollar softened, dropping half a percent as confidence waned across broader markets.
“Historically, November has given the S&P 500 an average gain of 1.8% since 1950. Yet, with employment showing cracks and tech valuations stretched, caution is the theme for the next few weeks,” advised the Stock Trader’s Almanac.
After the shock, what next?
As dusk falls on the latest market reversal, professional investors know that story isn’t over. Many are watching Tesla’s shareholder meeting for clues about Musk’s future. Others are hoping that the so-called “Magnificent Seven” can engineer a rebound, but few are betting the farm this time around.
“For every correction, there’s a bounce, but only when expectations reset,” wrote James Investment Research in a November review. The lesson for readers? When tides turn, portfolios need more defensive stocks and fewer overhyped tech bets.
So as the market pauses, eyes remain fixed on the next data release and the shifting fortunes of America’s biggest companies. The AI dream remains intact, but for now, nervous investors know they can’t afford to ignore storm clouds over Siliconr Silicon Valley.
Disclaimer: The views and recommendations made above are those of individual analysts or brokerage companies, and not of Winvesta. We advise investors to check with certified experts before making any investment decisions.
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Invest in 11,000+ US stocks & ETFs
Just yesterday, eyes darted across trading screens as the US equity market’s relentless high-wire act faltered. Investors knew technology stocks had been riding a wave of optimism, their valuations inflated by artificial intelligence excitement. But by late afternoon, the mood changed. The sell-off began quietly and then thundered through portfolios, a reminder that no rally lasts forever.
A sweeping chill ran through the Nasdaq, pulling it down 1.9%. The S&P 500 lost 1.1%, and the Dow slid 0.8%, wiping billions from flagship tech players like Nvidia, Amazon and Palantir. “There’s a real fear of an AI correction,” said Louis Navellier, founder of Navellier & Associates. “If it happens, it will sweep the whole sector. But personally, I don’t plan on selling Nvidia or Palantir just yet.”
The sentiment was echoed by Kristen Slo, chief at Apollo Management, who remarked, “The S&P today is historically extreme in its valuations.” Even Warren Buffett’s preferred market metric, which compares the total value of US stocks to economic growth, is sounding a caution, a signal the bull market could soon hit a wall.
The shockwaves were amplified by news that over 153,000 US workers lost their jobs in October, a jump not seen since 2003. The government shutdown left economic data thin on the ground, forcing traders to place outsized bets on every private payroll release. “We need reliable numbers before making decisions. The shutdown makes that nearly impossible,” lamented one New York-based strategist.
Headlines shift as layoff surge spooks the faithful
Mega-cap tech wasn’t the only victim. Amazon’s third-quarter results drove its stock lower by almost 3%. Palantir shed nearly 7% in a single afternoon, and Tesla’s shares slipped ahead of a pivotal vote on CEO Elon Musk’s pay package. “AI hype cracked today,” said Sean Conlon, market analyst at CNBC, capturing the mood that had grown bleak across trading floors.
Qualcomm and AMD faced similar heat after releasing earnings, both sliding over 4%. Volatility ticked higher, with the VIX jumping 11% as investors crowded into traditional safety nets like US Treasuries and the Japanese yen.
Meanwhile, bitcoin held steady near the $100,900 mark, giving a glimmer of hope for those betting on digital assets. The US dollar softened, dropping half a percent as confidence waned across broader markets.
“Historically, November has given the S&P 500 an average gain of 1.8% since 1950. Yet, with employment showing cracks and tech valuations stretched, caution is the theme for the next few weeks,” advised the Stock Trader’s Almanac.
After the shock, what next?
As dusk falls on the latest market reversal, professional investors know that story isn’t over. Many are watching Tesla’s shareholder meeting for clues about Musk’s future. Others are hoping that the so-called “Magnificent Seven” can engineer a rebound, but few are betting the farm this time around.
“For every correction, there’s a bounce, but only when expectations reset,” wrote James Investment Research in a November review. The lesson for readers? When tides turn, portfolios need more defensive stocks and fewer overhyped tech bets.
So as the market pauses, eyes remain fixed on the next data release and the shifting fortunes of America’s biggest companies. The AI dream remains intact, but for now, nervous investors know they can’t afford to ignore storm clouds over Siliconr Silicon Valley.
Disclaimer: The views and recommendations made above are those of individual analysts or brokerage companies, and not of Winvesta. We advise investors to check with certified experts before making any investment decisions.
Ready to earn on every trade?
Invest in 11,000+ US stocks & ETFs