On November 21, 2025, when the U.S. stock market closed for the day, the three major indices all took a hit, registering a collective decline. A broad - based pullback was evident among technology stocks. The Nasdaq Index suffered the most significant drop, plummeting by more than 2%.

Although Nvidia reported positive earnings, its stock price reversed course during the trading session. After initially showing promise, it ultimately ended the day on a down note, closing 3.15% lower. AMD's stock took a severe beating, tumbling nearly 8%. Oracle wasn't spared either, with its shares dropping more than 6%. Tesla and Amazon both saw their stock prices decline by over 2% each. Microsoft's stock fell by more than 1%, and Meta's shares dropped 1.38%. Only a handful of individual stocks, such as Walmart, managed to buck the trend and post gains.

The main drivers behind this market downturn were mounting concerns over the lofty valuations of AI - related stocks and a dampening of expectations regarding potential interest rate cuts by the Federal Reserve. In the financial world, when investors feel that a stock's price is too high compared to its actual earnings and growth prospects (overvaluation), they tend to sell, causing the stock price to fall. Similarly, the Federal Reserve's interest rate policies have a huge impact on the stock market. If investors anticipate fewer interest rate cuts, it can lead to a more cautious approach to investing, thus affecting stock prices.