November 2025 Market Vibe Shift: Tech Sell-Offs, AI Bubble Concerns, and Fed Policy Impact

A Reddit user highlighted a notable shift in market sentiment in November 2025, citing:

1. Sharp declines in AI leaders NVIDIA (NVDA) and Palantir (PLTR) despite positive earnings news
2. Michael Burry’s public warnings about an AI bubble and bearish positions on tech stocks
3. Changing expectations for Federal Reserve rate cuts
4. Uncertainty about whether the sell-off signals a buying opportunity

The discussion reflected investor confusion over market direction, with some advocating for defensive rotations (cash/value/dividends) and others seeing potential for bullish recovery. [Reddit Post, 2025-11-22]

• NVDA
  : Dropped14.03% ($208→$178) between Nov3–21,2025, amid bearish sentiment from Burry’s comments. [get_stock_daily_prices, id0]
• PLTR
  : Plunged24.48% ($205→$154) over the same period, aligning with claims of weakness on positive earnings. [get_stock_daily_prices, id1]
• NASDAQ Composite
  : Declined7.01% (23951→22273), outpacing the S&P500’s4.06% drop, highlighting tech-heavy losses. [get_market_indices, id3]

###2. Sector Rotation
Investors shifted to defensive sectors:

• Healthcare
  : Led gains (+1.73%) on Nov22 as a safe-haven play.
• Tech
  : Only marginally positive (+0.146%), indicating reduced risk appetite for high-growth stocks. [get_sector_performance, id2]

###3. Sentiment Drivers

• Michael Burry’s Bearish Stance
  : Disclosed puts on NVDA/PLTR (Nov4) and warned of AI bubble risks, citing accounting practices inflating earnings. [web_search, id4: Fortune, Business Insider]
• Fed Policy Shift
  : Expectations for a December rate cut rose from40% to over70% in late November, driven by dovish Fed comments. [web_search, id5: Morningstar]

Metric	Value	Source
NVDA Nov3–21 Change	-14.03%	get_stock_daily_prices (id0)
PLTR Nov3–21 Change	-24.48%	get_stock_daily_prices (id1)
NASDAQ Nov3–21 Change	-7.01%	get_market_indices (id3)
Healthcare Sector Nov22 Gain	+1.73%	get_sector_performance (id2)
Dec Fed Cut Probability (Nov22)	>70%	web_search (id5: Morningstar)

1. Earnings Verification
   : Need to confirm if NVDA/PLTR’s recent earnings exceeded expectations (as claimed in the Reddit post).
2. Fear Sentiment
   : Missing VIX data to assess if the sell-off reflects extreme fear (a key buying signal).
3. Institutional Positioning
   : No data on institutional flows for NVDA/PLTR to gauge long-term sentiment.
4. Economic Data
   : Upcoming jobs/inflation reports will shape Fed policy—these are not yet available.

• Buying Opportunity
  : Tech’s sharp drops (14–24%) may present value if earnings fundamentals remain strong, but requires verification of earnings quality.
• Rotation Risk
  : Investors trimming tech should monitor healthcare/industrial valuations to avoid overpaying for safety.
• Policy Sensitivity
  : Fed rate cuts could support tech recovery, but uncertainty persists until the Dec10 meeting.

• AI Bubble Concerns
  : Burry’s warnings about overinvestment in AI infrastructure may trigger further tech sell-offs if validated.
• Earnings Quality
  : If NVDA/PLTR’s earnings are not as strong as claimed, downside risks persist.
• Policy Reversal
  : A Fed pause in rate cuts could increase volatility for rate-sensitive tech stocks.

1. NVDA/PLTR Earnings Reports
   : Confirm if results justify recent price drops.
2. Fed Meeting (Dec10)
   : Outcome of rate cut decision and forward guidance.
3. VIX Levels
   : Track for signs of extreme fear (buy signal) or complacency (sell signal).
4. Institutional Flows
   : Monitor if large investors are accumulating or exiting tech stocks.

[0] get_stock_daily_prices: NVDA Nov3–21 performance
[1] get_stock_daily_prices: PLTR Nov3–21 performance
[2] get_sector_performance: Nov22 sector data
[3] get_market_indices: S&P500/NASDAQ Nov3–21 performance
[4] web_search: Michael Burry AI bubble comments (Fortune, Business Insider)
[5] web_search: Fed rate cut expectations (Morningstar, Forbes)
[6] Reddit Post: “Anyone else feeling like the market’s vibe totally shifted this month?” (2025-11-22)

: Users should be aware that Michael Burry’s bearish bets on NVDA/PLTR and AI bubble warnings may significantly impact tech sector performance. The sharp drops in these stocks despite positive earnings sentiment (per Reddit) warrant careful verification of fundamentals before making investment decisions.

Analysis conducted using tools’ outputs as of 2025-11-24 UTC.