Wall Street faces the storm: Hopes and warnings ahead of thanksgiving
As the U.S. stock market edges closer to the Thanksgiving break, tension runs high on trading floors. Last week, indices such as the Dow Jones Industrial Average , S&P 500 , and Nasdaq 100 all stumbled, spooked by sharp corrections in AI stocks and doubts about lofty valuations. Now, investors are holding their breath, keenly awaiting Federal Reserve signals and economic data just as trading volumes dip for the holiday-shortened week.
Turbulence in technology and talk of bubbles
Triggered by a dramatic reversal late Thursday, the market’s mood remained fragile despite a Friday rally. Charlie Ashley, portfolio manager at Catalyst Funds, summed up the volatility: “A reversal this magnitude, positive waning and investors using the earnings in Nvidia stock as an opportunity to take profits.” For many, optimism felt hard-won after weeks marked by spikes and tumbles. Ashley added, “If the Fed opts to maintain, the cost of capital could be another headwind for equity valuations.”
AI has been the superstar, but as Michael Field, chief equity strategist at Morningstar, told CNBC, “From our perspective, it does not appear that we are in an everything bubble, thankfully. I would assess this by examining the headline figures.” Still, Field flagged Tesla and Nvidia as “overvalued,” while leaving room for growth in Alphabet , Meta , and Microsoft : “There are certainly warning signs ... but we are not yet in a state of panic regarding valuations or the companies themselves.”
Is the tide turning for Fed policy?
The recent sharp sell-off has investors looking for relief, hoping that the Federal Reserve will cut rates. When New York Fed President John Williams sounded open to a December cut, Wall Street’s bets on easier policy jumped from 30% to 70%. Mark Hackett, chief market strategist at Nationwide, commented: “The market’s reaction to Nvidia and the payroll report was universally positive, and the selling off represents a different behaviour than we have seen over the past six months. It’s too early to conclude that we have entered a new regime, but this is new information we need to consider.”
The stakes are high. Investors expect trading to thin out before the festive break, while earnings releases from major retailers could trigger fresh moves. And all eyes will linger on every hint from Washington and the Fed, searching for direction as the market navigates what could be its choppiest November in years.
For now, hope and caution wrestle for control. Wall Street is braced, waiting to see whether the week will deliver a turnaround, or just more of the same stormy ride.
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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As the U.S. stock market edges closer to the Thanksgiving break, tension runs high on trading floors. Last week, indices such as the Dow Jones Industrial Average , S&P 500 , and Nasdaq 100 all stumbled, spooked by sharp corrections in AI stocks and doubts about lofty valuations. Now, investors are holding their breath, keenly awaiting Federal Reserve signals and economic data just as trading volumes dip for the holiday-shortened week.
Turbulence in technology and talk of bubbles
Triggered by a dramatic reversal late Thursday, the market’s mood remained fragile despite a Friday rally. Charlie Ashley, portfolio manager at Catalyst Funds, summed up the volatility: “A reversal this magnitude, positive waning and investors using the earnings in Nvidia stock as an opportunity to take profits.” For many, optimism felt hard-won after weeks marked by spikes and tumbles. Ashley added, “If the Fed opts to maintain, the cost of capital could be another headwind for equity valuations.”
AI has been the superstar, but as Michael Field, chief equity strategist at Morningstar, told CNBC, “From our perspective, it does not appear that we are in an everything bubble, thankfully. I would assess this by examining the headline figures.” Still, Field flagged Tesla and Nvidia as “overvalued,” while leaving room for growth in Alphabet , Meta , and Microsoft : “There are certainly warning signs ... but we are not yet in a state of panic regarding valuations or the companies themselves.”
Is the tide turning for Fed policy?
The recent sharp sell-off has investors looking for relief, hoping that the Federal Reserve will cut rates. When New York Fed President John Williams sounded open to a December cut, Wall Street’s bets on easier policy jumped from 30% to 70%. Mark Hackett, chief market strategist at Nationwide, commented: “The market’s reaction to Nvidia and the payroll report was universally positive, and the selling off represents a different behaviour than we have seen over the past six months. It’s too early to conclude that we have entered a new regime, but this is new information we need to consider.”
The stakes are high. Investors expect trading to thin out before the festive break, while earnings releases from major retailers could trigger fresh moves. And all eyes will linger on every hint from Washington and the Fed, searching for direction as the market navigates what could be its choppiest November in years.
For now, hope and caution wrestle for control. Wall Street is braced, waiting to see whether the week will deliver a turnaround, or just more of the same stormy ride.
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