Nov 2025 Market Vibe Shift: AI Bubble Discourse & Tech Sell-offs Amid Fed Policy Uncertainty

The Reddit user’s ‘vibe shift’ observation aligns with data showing a Nov 3-21 tech sector downturn: NASDAQ Composite dropped7% [3], NVIDIA (NVDA) fell14.03% [0], and Palantir (PLTR) declined24.48% [1]—all despite strong earnings (NVDA’s Q3 revenue up62% YoY, $350B backlog [6]; PLTR positive earnings [7]). This disconnect stems from AI bubble discourse amplified by Michael Burry’s warnings and bearish bets against NVDA/PLTR [4]. Fed policy uncertainty initially fueled risk-off sentiment (fewer expected cuts), but by Nov26, markets priced an84.9% chance of a Dec cut [5], leading to a Nov22 Tech rebound (+0.53%) and Energy sector gains (+1.13%) [2].

1. Narrative Over Fundamentals
   : Price movements (tech sell-offs) reinforced the AI bubble narrative, overriding strong fundamentals (NVDA’s backlog, earnings) [6].
2. Influencer Impact
   : Burry’s comments amplified existing concerns, creating a self-fulfilling prophecy for tech stocks [4].
3. Policy-Driven Rebound
   : Shifting Fed rate cut expectations (from fewer cuts to high Dec cut probability) likely stabilized markets [5].
4. Rotation Trend
   : Risk-off sentiment led to rotation from high-growth tech to value sectors (Energy) and cash [2].

: Continued AI bubble discourse may further pressure tech stocks; Fed policy uncertainty remains a wildcard.
: Tech rebound potential if Fed cuts rates; buying opportunities in fundamentally strong tech stocks (NVDA/PLTR) amid sell-offs; value sectors (Energy) showing resilience.

• Tech sector weakness: NASDAQ down7% (Nov3-21), NVDA-14%, PLTR-24% [0,1,3].
• Fundamentals vs price: NVDA/PLTR dropped despite strong earnings and demand [6,7].
• Fed policy: 84.9% chance of Dec rate cut (as of Nov26) [5].
• Sector trends: Energy led gains Nov22, Tech rebounded slightly [2].