Week:
S&P500: -1.7% FTSE100: -1.6% Gold: -0.4% Bitcoin: -8.8%
YTD:
S&P500: +12.5% FTSE100: +15.5% Gold: +53.8% Bitcoin: -10.2%
Markets Sink as fears over an ‘AI bubble’ grew
Source: Connect Weekly | Week ending 22 November 2025
US equities slid through the week as traders braced for a critical stretch of catalysts: Nvidia earnings, a delayed September jobs report, and the first wave of shutdown-backlogged economic data. Tech and consumer discretionary bore the brunt of selling, momentum cracked, and Bitcoin extended its “Painvember” collapse. The S&P 500 logged a four-day losing streak before stabilising on Friday, while the Russell 2000 held up better than megacaps.
What drove markets this week
Monday set the tone with a broad tech- and finance-led selloff as traders positioned ahead of Nvidia’s earnings and Thursday’s job numbers. Speculative pockets were hit hardest, with Bitcoin dropping below 93,000 dollars and the Fear & Greed Index sinking to 14. Alphabet was a rare standout on news of data-centre expansion and a Berkshire Hathaway endorsement, while Lucid and Dell tumbled on downgrades. Reports that Peter Thiel’s fund dumped its entire Nvidia stake only added fuel to the de-risking.
Tuesday kept the pressure on. The S&P 500 fell for a fourth straight session as investors waited for Nvidia’s make-or-break results. Tech and consumer discretionary led declines, with Amazon dragging. Bitcoin briefly slipped below 90,000 dollars for the first time since April. Warner Bros. Discovery jumped on fresh takeover chatter, while Archer Aviation rose on a new defence powertrain deal.
Wednesday brought a respite. The S&P 500 snapped its losing streak and tech rallied ahead of the bell. Nvidia then delivered after hours, crushing expectations with revenue and guidance well ahead of estimates. Still, nerves lingered as the Bureau of Labor Statistics cancelled October’s jobs report and Fed minutes showed deep divisions on whether to cut again in December. Odds of no cut jumped to 66 per cent. Alphabet surged on enthusiasm for its Gemini 3 release, and Constellation Energy rose after securing federal backing for the Three Mile Island restart.
AI and momentum trades wobble despite Nvidia beat
Thursday was the week’s inflection point. Nvidia’s blowout earnings failed to settle nerves. SPY opened more than 1.5 per cent higher and finished more than 1.5 per cent lower — something seen only three other times since inception. Every major index dropped as valuations took centre stage. The entire Mag 7 fell, and momentum cracked: Goldman’s high-beta basket posted its worst day since April, and speculative favourites across AI, quantum computing, and green energy endured another round of heavy liquidation. Bitcoin slid below 100,000 dollars, weighing on digital-treasury names.
Friday: Stocks slide again as investors focus on Nvidia and the AI trade
Friday brought another cautious session as traders looked ahead to Nvidia’s earnings as a final test of the AI narrative. The S&P 500 fell for a fourth consecutive day, its longest losing streak since August. The Nasdaq 100 fell as tech remained under pressure, while the Russell 2000 managed a small gain. Bitcoin stabilised slightly after breaking below 90,000 dollars earlier in the week.
Looking ahead
A pivotal week now awaits. Nvidia has cleared its hurdle, but the market must still digest Thursday’s jobs data, backlog-distorted releases, and the Fed’s December path. With rate-cut odds shifting and momentum clearly fragile, the next move hinges on whether earnings strength can outweigh macro uncertainty. Volatility is likely to remain elevated as traders reassess just how stretched the AI trade has become.
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