The US equity market continued its slide on 18 November as traders reassessed lofty technology valuations. Major indices extended a four‑day decline; by mid‑morning, the S&P 500 had fallen around 1.4% and the technology‑heavy NASDAQ 100 was down nearly 1.9%.
The Dow Jones Industrial Average also fell by about 1.1%. Overseas markets mirrored the weakness, with Europe’s Stoxx 600 losing roughly 1.4% and global volatility measures climbing.
Pressure came largely from the largest technology companies. Investors became cautious ahead of NVIDIA’s earnings report and worried that the surge in artificial‑intelligence stocks had gone too far. Reuters reported that global shares fell as nerves grew before NVIDIA’s results, which many expect to influence sentiment toward soaring AI‑related valuations.
Analysts at Pepperstone noted that there were many reasons to reduce risk in NVIDIA’s upcoming earnings, US payroll data, and general exhaustion after a lengthy rally. They added that enthusiasm for AI spending has waned, and investors now question whether heavy investment will produce commensurate returns.
Furthermore, the sell‑off is fueled by broader economic concerns. A Bank of America survey of global fund managers showed cash positions falling to 3.7% in November, a level that has historically preceded market declines.
The survey warned that markets could continue to correct if the Federal Reserve does not cut rates next month and highlighted that almost half of respondents view an AI bubble as the biggest risk. A record share of respondents also said companies are “overinvesting,” suggesting that the heavy capital expenditures by tech giants may need to slow.
Economic data remain clouded by the recent government shutdown, creating what some analysts call a “data fog.” Analysts explained that gaps in employment and inflation statistics may delay rate‑cut decisions and have left policymakers “driving in the fog”. This uncertainty has reduced expectations for a December rate cut to about 46%.
Meanwhile, valuations remain elevated: the forward price‑to‑earnings ratio for the S&P 500 stands around 22.8, well above the 10‑year average of 18.8. The NASDAQ Composite is down roughly 4% from its October peak, and some investors are locking in gains after a rally fueled by generative‑AI optimism.
Apple Inc. After the iPhone 17 launch, Apple’s smartphone sales in China rose 22% year‑on‑year in the first month, with the new models accounting for nearly four‑fifths of units sold. The momentum suggests strong demand despite a sluggish overall market and increasing competition.
Alphabet’s Google: Google introduced Gemini 3, the newest version of its artificial‑intelligence model, and integrated it into its search engine from the outset. Executives described it as the company’s “most intelligent model” and highlighted new features like Gemini Agent, which performs multi‑step tasks. The launch reflects the rapid pace of AI development and highlights Google’s efforts to deploy advanced models in revenue‑generating products.
Intuit Inc.: The financial software company signed a multi‑year agreement worth more than $100 million with OpenAI. Intuit said it will use ChatGPT models to power AI agents across applications such as TurboTax, Credit Karma, and QuickBooks, enabling users to get instant tax and financial decisions. The deal sent Intuit’s shares higher as the firm seeks to deepen customer engagement.
Home Depot Inc.: The home‑improvement retailer forecast a bigger drop in full‑year profit, expecting earnings per share to decline about 5% compared with a prior estimate of a 2% drop. Executives cited economic uncertainty and weak demand for big‑ticket renovations as reasons for the downgrade. The company said comparable sales would be only slightly positive and reported that third‑quarter transactions fell 1.6%.
Market participants remain cautious as they weigh high valuations against the prospect of slower economic growth. The combination of stretched technology prices, fading optimism in the AI story, and uncertainty over monetary policy has led to the longest US stock market slide since August.
With investors holding relatively low cash buffers and positioning heavily tilted toward large‑cap technology, volatility may persist until fresh data or company results restore confidence. In the interim, traders are likely to scrutinize upcoming earnings, monitor economic releases for signs of resilience, and consider whether current AI‑driven spending can deliver sustainable returns.