November 2025 Market Vibe Shift: Tech Sell-Offs Amid AI Bubble Concerns and Fed Uncertainty

The November 2025 market has experienced a notable sentiment shift driven by multiple factors:

1. Tech Sell-Offs
   : NVIDIA (NVDA) and Palantir (PLTR) declined 12.27% and 20.87% respectively between November 3-24, despite beating Q3 earnings expectations [0].
2. AI Bubble Concerns
   : High-profile investor Michael Burry’s comments comparing NVDA to Cisco in the dot-com era and warning of an AI bubble have fueled bearish sentiment [2].
3. Fed Policy Uncertainty
   : Fixed income markets now project a 1-in-3 chance of a December Fed rate cut (down from earlier estimates), adding to market unease [1].
4. Risk-Off Rotation
   : Defensive sectors like Utilities (+3.22% on November22) have outperformed as investors shift from high-growth tech to safer assets [1].

• Fundamental-Price Disconnect
  : Tech leaders’ underperformance despite strong earnings indicates sentiment-driven selling rather than fundamental weakness [0].
• Sentiment Over Fundamentals
  : The market narrative is being shaped more by price movements and investor sentiment than underlying company performance [0].
• Defensive Sector Appeal
  : Risk-off rotation highlights investor preference for stable, dividend-yielding sectors amid uncertainty [1].

• Tech Sector Downside
  : Persistent AI bubble concerns could lead to further sell-offs in tech stocks [2].
• Fed Policy Risk
  : Delayed rate cuts may increase borrowing costs for high-growth tech companies, pressuring valuations [1].

• Buying Windows
  : Sentiment-driven sell-offs present potential long-term buying opportunities, though current fear levels may not be extreme [0].

The November 2025 market shift is characterized by tech underperformance, risk-off rotation, and sentiment-driven selling. Key drivers include Burry’s AI warnings, reduced Fed cut expectations, and the disconnect between earnings and price action. Defensive sectors are beneficiaries, while tech leaders face short-term pressure.