Chicago – November 18, 2025
Wall Street slumped again on Tuesday, extending a multi-day slide as fading expectations of a December Federal Reserve rate cut and renewed anxiety over lofty tech valuations rattled investors.
By late morning, the Dow had dropped more than 600 points, the S&P 500 was heading toward a fourth straight losing session, and the Nasdaq was down nearly 2% — its sharpest retreat in weeks.
The sell-off was led by Big Tech. Nvidia fell more than 2% ahead of its closely watched earnings report, while Amazon and Microsoft each slid about 3%. Chipmakers AMD and Intel posted deeper losses, reflecting broader concern that the AI-fueled rally has outpaced fundamentals.
A high-profile AI partnership announced earlier in the day — Anthropic’s $30 billion cloud deal with Microsoft and new investments from Microsoft and Nvidia — failed to lift sentiment. Both companies remained firmly in the red.
Risk appetite weakened further as Bitcoin briefly dipped below $90,000 before recovering, adding to the sense that investors are pulling back from speculative trades after months of aggressive buying.
Economic signals were mixed. New Labor Department data showed jobless claims rising to a two-month high in October, adding to concerns that the labor market is softening without a corresponding drop in inflation — a combination that complicates the Fed’s path forward.
Outside tech, Home Depot shares fell after reporting weaker-than-expected earnings and cutting its full-year outlook. Consumer retail and industrial stocks also drifted lower.
Commodities were steadier. Gold edged up on a softer dollar, while crude oil hovered around $64 a barrel as traders weighed a potential supply glut against U.S. sanctions affecting Russian flows.
With key government data and Nvidia’s earnings due this week, analysts say the next 48 hours could determine whether this downturn becomes a deeper correction or a temporary pullback in an overheated market.
