November 2025 Market Vibe Shift: AI Bubble Concerns and Sector Rotation Analysis

The market shifted to a risk-off tone in November2025, with growth/tech indices underperforming: NASDAQ Composite (-2.91%), NASDAQ100 (-3.40%), Russell1000 Growth (-3.22%) vs Russell1000 Value (-1.16%) [1]. Defensive sectors led: Energy (+1.13%), Consumer Defensive (+0.89%) while Tech (+0.53%) lagged [0]. Key stocks: PLTR dropped 14.88% (Burry’s AI bubble comments/put options) [6], NVDA fell1.25% despite 62% YoY revenue growth [3,5]. Catalysts: Burry’s NVDA-dotcom comparison [3], tech sell-offs on earnings (NVDA post-earnings drop) [4], growth-to-value rotation [1,0], and 84.9% Dec Fed rate cut odds [2].

1. Price drives narrative over fundamentals: Sentiment is influenced more by price trends than fundamentals.
2. Big investor comments impact market: Burry’s remarks caused immediate AI stock reactions [3].
3. Growth vs Value rotation: Defensive/value sectors outperformed growth indicating caution [1,0].
4. Tech weakness on strong earnings: NVDA/PLTR drops despite earnings signal valuation skepticism [3,4,6].

: Further AI bubble fears, unexpected Fed policy shifts, continued tech underperformance [3,2].
: Value sectors (Energy) outperforming, potential buying opportunities if sell-off deepens (current sell-off not extreme fear).

• Indices: NASDAQ (-2.91%), NDX (-3.4%), RLG (-3.22%), RLV (-1.16%) [1]
• Sectors: Energy (+1.13%), Tech (+0.53%) [0]
• Stocks: PLTR (-14.88%), NVDA (-1.25%) [5,6]
• Catalysts: Burry’s comments, tech earnings sell-offs, sector rotation, Fed rate cut expectations [2,3,4]