Imagine waking up to a stock market that's already showing signs of uncertainty—tech giants stumbling, futures dipping, and investors questioning if the AI boom is just a fleeting high. But here's where it gets controversial: is this the start of a major correction, or merely a speed bump on the road to even greater tech dominance? Stick around as we dive into the latest market updates, unpacking the details in a way that's easy to follow, even if you're new to all this investing lingo.
Picture a bustling trading floor at the New York Stock Exchange on November 3, 2025, where professionals are navigating a choppy sea of data. Overnight, Dow futures edged up a bit on Tuesday evening, but Nasdaq futures, heavily weighted toward tech, took a nosedive as traders pondered the next moves for those massive tech behemoths.
Specifically, futures for the Dow Jones Industrial Average climbed by 36 points, which is about 0.1%. Meanwhile, S&P 500 futures slipped by roughly 0.2%, and Nasdaq 100 futures plunged by nearly 0.4%. This backdrop follows a disappointing session for the major indices. The S&P 500 dipped by 1.2%, the Nasdaq Composite fell by 2%, and the Dow Jones Industrial Average shed 251 points, or 0.5%.
A big part of this downturn? Palantir's sharp decline of about 8%, even though the company exceeded third-quarter expectations. Investors are fretting over the software firm's valuation—and by extension, the entire AI sector—which seems stretched. For beginners, think of it like buying a house for way more than it's worth; Palantir is currently trading at over 200 times its forward earnings, meaning people are betting heavily on future profits. And this is the part most people miss: despite the gloom, many experts believe the long-term outlook for tech remains bright, fueled by robust investments in AI infrastructure. But here's where it gets controversial—does this optimism blind us to a potential bubble?
Liz Young Thomas, SoFi's head of investment strategy, shared her take on CNBC's 'Closing Bell' on Tuesday. She downplayed the immediate worry, noting, 'I don't think that this is concerning today,' but admitted that prolonged highs could become an issue down the line. 'I do think that as far as we've gotten, this extended [market run], is concerning eventually, but I still think that we're going to run into year end.' She added, 'I still think the chase is on. I still think the large cap love affair is on. And that's probably not going to change over the longer term period. But today, I think we were looking for an excuse.' In simpler terms, she's saying the enthusiasm for big tech firms isn't fading, but today's sell-off might be a brief pause rather than a reversal.
Shifting gears to the economy, traders are turning to alternative data for insights since official government reports can be slow to arrive. On Wednesday, the ADP private payrolls report will drop, alongside weekly mortgage applications and ISM services data. For those new to this, ADP gives a sneak peek at job growth in the private sector, which can hint at broader economic health.
Earnings season keeps rolling, with McDonald's set to report before the market opens on Wednesday. So far, out of the 360 S&P 500 companies that have chimed in, about 82% have surpassed expectations, per FactSet. The entire S&P 500 looks poised for a blended growth rate exceeding 12%. To put that in perspective, this means companies are collectively growing faster than anticipated, which could signal strong corporate performance—though some argue this might be masking underlying vulnerabilities.
10 Minutes Ago
S&P 500 and Nasdaq have to fall another 2%-3% to test 50-day moving averages
Following Tuesday's market dip, the S&P 500 would need to drop another 117 points, or about 1.7%, to reach its 50-day moving average at 6654.33. It closed the day at 6771.55. For the Nasdaq Composite, a steeper decline of 778 points, or 3.3%, is required to hit its 50-day mark at 22,570.63, after ending Tuesday at 23,348.64. Beginners, a moving average is like a smoothed-out average of stock prices over time, helping investors spot trends—for instance, dropping below it often signals short-term weakness.
On the grim side for small-cap stocks, the Russell 2000 index finished at 2427.34, slipping below its 50-day moving average of 2439.82 for the first time since August 1. This chart from Scott Schnipper and Gina Francolla illustrates the Russell 2000 small-cap index since that date.
40 Minutes Ago
Here's the latest earnings scorecard
We're over halfway through earnings season, and the reports are impressing more than disappointing. Among the 360 S&P 500 firms that have reported, approximately 82% have exceeded expectations, based on FactSet data. The S&P 500 as a whole is on track for a blended growth rate topping 12%.
— Sarah Min
1 Hour Ago
Stocks making the biggest moves after hours
Let's spotlight the companies grabbing attention in after-hours trading.
AMD, the semiconductor giant, shed 1% despite solid results. Amazon disclosed in a filing that it sold off its AMD stake in Q3. Still, AMD beat forecasts with adjusted earnings of $1.20 per share on $9.25 billion in revenue. Analysts had predicted $1.16 per share and $8.74 billion in sales. For context, AMD's chips power many tech devices, so this shows how supply chain news can sway even good earnings.
Pinterest, the visual discovery platform, crashed 18% after weak Q3 figures: adjusted earnings of 38 cents per share on $1.05 billion in revenue, falling short of the 42 cents and same revenue expected by analysts.
Super Micro Computer, an AI-focused player, dropped 10% after missing Q1 expectations and issuing a lukewarm forecast. It reported adjusted earnings of 35 cents on $5.02 billion in revenue, against expectations of 40 cents and $6.0 billion. For Q2, it projects 46 to 54 cents per share, below the 61 cents consensus. Think of Super Micro as the backbone for AI servers; disappointing guidance here raises questions about AI's pace.
See the full list here.
— Sarah Min
2 Hours Ago
Dow futures open higher
Dow futures started Wednesday night on a positive note.
Dow Jones Industrial Average futures jumped 100 points, or 0.23%. S&P 500 futures rose by less than 0.1%, while Nasdaq 100 futures dipped 0.1%.
— Sarah Min
So, what do you think? Is the market's optimism around AI and tech stocks warranted, or are we ignoring red flags like Palantir's sky-high valuation? Could this be the moment we finally see a tech pullback, or is it just noise before more gains? Share your thoughts below—do you agree with Liz Young's long-term bullishness, or do you see trouble brewing? Let's discuss!
