Macro & Markets: Weekly Review & Upcoming Outlook, November 9, 2025

Bassyonni

ago 2 hours

Macro & Markets: Weekly Review & Upcoming Outlook, November 9, 2025

Markets faced a turbulent week, marked by significant downturns across major indices. The Dow Jones Industrial Average (DJIA) dropped by 1.21%, while the S&P 500 (SPX) fell by 1.63%. The Nasdaq-100 (NDX) experienced a substantial decline of 3.09%, marking its worst performance since April.

Concerns Over AI Valuations

Renewed fears of an “AI bubble” impacted investor sentiment. Concerns were elevated as the “Magnificent Seven” companies comprised 36% of the S&P 500’s market capitalization. Wall Street leaders have pointed to overheated valuations, suggesting a correction is overdue and would be beneficial.

A notable $1.1 billion short position by investor Michael Burry against Nvidia (NVDA) and Palantir (PLTR) added to this unease. Burry’s firm, Scion Asset Management, also took significant long positions in Pfizer (PFE) and Halliburton (HAL), both trading at lower valuations amid the tech sell-off.

Impact on Major Tech Stocks

Leading AI stocks, including Nvidia, Meta (META), and Palantir, saw their combined market cap decline by nearly $1 trillion last week.
Despite this drop, the total market capitalization of these firms remains approximately $23 trillion, nearing the size of the U.S. GDP.
The White House warned against expecting a federal bailout for AI companies.

Consumer Sentiment and Employment Concerns

According to a preliminary University of Michigan survey, U.S. consumer sentiment fell to 50.3 in November. This figure is only slightly above the all-time low recorded in 2022, as widespread concerns about the prolonged government shutdown grow.

In October, layoffs surged, marking the most significant job cuts in over 20 years. Major companies like Amazon (AMZN) and Meta have noticeably reduced their workforces to redirect funds into AI investments. Other businesses, such as UPS (UPS) and Target (TGT), are also tightening their budgets amidst rising costs.

Falling consumer confidence and the pressure on employment have increased speculation about possible interest rate cuts by the Federal Reserve at their upcoming meeting in December.

Noteworthy Developments in Corporate America

Meta Platforms (META) revealed plans to invest at least $600 billion in U.S. infrastructure and jobs over three years, focusing on data centers for AI.
Tesla (TSLA) shareholders approved a $1 trillion compensation package for CEO Elon Musk contingent on meeting market cap and operational goals.
Oracle (ORCL) secured an $18 billion loan for its data center project in New Mexico, reflecting the high capital demands of AI infrastructure.
Eli Lilly (LLY) and Novo Nordisk (NVO) agreed to lower prices for specific anti-obesity drugs while ensuring broader Medicare access starting in 2026.