November 2025 Market Vibe Shift: Tech Weakness, Fed Policy & AI Bubble Concerns

The market experienced a notable vibe shift in November 2025, driven by multiple interconnected factors. Tech leaders NVIDIA (NVDA) and Palantir (PLTR) declined ~4.8% and ~13.3% respectively over the past month, despite strong earnings, due to Michael Burry’s $1.1B put options and AI bubble comments [3][4]. Fading Fed rate cut expectations (December cut likelihood decreased after strong jobs data and Fed minutes) further contributed to risk-off sentiment [1][2]. This led to a clear rotation from growth to value/defensive sectors: the S&P 500 Growth Index fell ~1.38% while the Value Index rose ~1.03%, with the Dow Jones (value-heavy) up ~1.2% and NASDAQ (tech-heavy) down ~1.35% [0]. Volatility (VIX) increased ~20% to ~23.43, indicating rising uncertainty but not extreme panic [0].

Cross-domain connections reveal a disconnect between fundamentals and price movements: tech stocks declined even with strong earnings, highlighting that price narratives (like AI bubble talk) are driving decisions more than underlying performance. The rotation to value/defensive sectors suggests investors are seeking safety amid policy and valuation concerns. Additionally, volatility levels (VIX ~23) indicate fear is not yet extreme, aligning with observations that the sell-off isn’t large enough to signal extreme fear [0].

: Further Fed hawkishness could exacerbate tech weakness; escalation of AI bubble sell-off may lead to deeper declines for growth stocks [0][1].
: If volatility spikes to extreme levels (>30), buy-on-dip opportunities may emerge (per market wisdom of buying when others are scared). Value/defensive sectors continue to offer relative safety [0].

• Indices: S&P500 flat (-0.38%), NASDAQ down ~1.35%, Dow up ~1.2%, Russell2000 down ~2.2% [0].
• Sector Performance: Healthcare (+1.73%) and Industrials (+1.52%) lead; Utilities (-0.88%) lag [0].
• Notable Movers: NVDA (-4.8%), PLTR (-13.3%), Dow (+1.2%) [0].
• Volatility: VIX up ~20% to ~23.43 [0].