U.S. stocks tumbled on Nov. 17 as bank and tech shares sold off. Fed officials delivered mixed signals on interest rates while Bitcoin continued to decline.
U.S. equities opened the week with a sharp downturn as major indexes fell across the board. The Dow Jones Industrial Average plunged 557 points (1.2%), marking one of the steepest declines this month. The S&P 500 and Nasdaq also closed roughly 1% lower.
Behind the downturn was an intensifying selloff in bank and technology stocks, particularly within the artificial-intelligence (AI) segment. The pullback indicates that investors are now “looking under the hood” of the AI boom after months of elevated valuations and aggressive optimism.
Even as markets await Nvidia’s highly anticipated earnings report due Wednesday, pessimism dominated the session:
Nvidia slipped as investors prepared for results that could determine whether AI enthusiasm remains justified.
Meta and Amazon joined the downdraft ahead of the holiday shopping season.
AMD, Super Micro Computer, and Dell Technologies—key beneficiaries of AI hardware demand—continued their multiday retreat.
Oracle and CoreWeave extended their weeks-long slide, highlighting mounting concerns over the sustainability of AI-related revenue.
Even the announcement of a major investment by Warren Buffett’s Berkshire Hathaway in Alphabet was not enough to stabilize sentiment. Many investors believe the market has overheated over the past six months, making a deeper correction increasingly likely.
One of the most market-moving developments came from two senior Federal Reserve officials, whose contrasting comments added significant uncertainty:
Jefferson emphasized that the Fed should cut rates gradually, noting that inflation may remain persistent even as the labor market shows early signs of cooling.
He argued:
“The Fed must balance the risks of sticky inflation against the mounting risk of slower economic growth.”
Just hours later, Waller expressed nearly the opposite view—urging the Fed to begin lowering interest rates to prevent the economy from slipping into a stealth recession.
This split among top policymakers deepened market volatility, as investors now struggle to predict the Fed’s next move.
This week is shaping up to be a make-or-break moment for the markets as investors prepare for several key data releases:
Set for release on Thursday, the long-delayed jobs report will help confirm whether the labor market is indeed slowing.
These indicators will offer a clearer picture of underlying economic resilience amid persistent borrowing costs.
Home Depot reports results on Tuesday, followed by other major retailers—critical for gauging consumer demand heading into the year-end holidays.
Nvidia’s results remain the single most important catalyst this week. Strong numbers may lift the AI sector, while any hint of slowdown could trigger a deeper market correction.
The selloff wasn’t limited to equities.
Bitcoin fell 2.4% to around $91,859, extending its decline after suffering the steepest weekly drop in several months.
Key reasons include:
Investors shifting away from speculative assets
U.S. bond yields remaining elevated
A broad “risk-off” sentiment across global markets
The 10-year U.S. Treasury yield slipped slightly to 4.132%, though it remains high by historical standards. This reflects:
A move toward safer assets
Rising expectations of a policy shift should economic data deteriorate further
Monday’s session highlighted a market entering a high-volatility, high-uncertainty environment:
AI valuations are being reassessed
The Fed remains divided on future policy
Key data releases will dictate investor sentiment
Bitcoin and other risk assets continue to weaken
Investors are advised to stay cautious, reduce leverage, and monitor this week’s economic reports closely.
A broad selloff in bank and tech stocks, combined with conflicting comments from Federal Reserve officials, triggered a sharp decline.
Nvidia’s report is viewed as a barometer for the AI industry. Weak results could accelerate a broader market correction.
Fed officials remain divided. Some advocate for caution while others call for immediate cuts, creating uncertainty for investors.
Bitcoin is declining due to a shift away from risk assets, elevated bond yields, and weakening investor sentiment.
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