Sou Hu Cai Jing·2025-11-05 08:10Core Viewpoint - The recent significant decline in major tech stocks, including Tesla and Nvidia, has been attributed to a combination of factors including a prominent investor's short-selling strategy, tightening monetary policy from the Federal Reserve, high valuation concerns, and macroeconomic instability. Group 1: Market Reaction - On November 4, 2025, the U.S. stock market experienced a sharp decline, with the Nasdaq index dropping by 2.04% and major tech companies losing nearly $450 billion in market value, equivalent to approximately 3.2 trillion yuan [1][6][8]. Group 2: Short-Selling Influence - Legendary investor Michael Burry, known for his role in the film "The Big Short," has heavily shorted tech stocks, with put options on Nvidia valued at $186 million and Palantir at $912 million, prompting a wave of selling among investors concerned about high valuations [6][7]. Group 3: Federal Reserve Policy - The Federal Reserve's recent hawkish signals have dampened expectations for further interest rate cuts, leading to increased volatility in the 10-year U.S. Treasury yield and a stronger dollar, which negatively impacted tech stocks [7][8]. Group 4: Valuation Concerns - As of early November 2025, Nvidia's market capitalization exceeded $5 trillion, while Apple and Microsoft reached $4 trillion and $3.9 trillion, respectively, indicating that these companies' valuations are comparable to major economies, raising concerns about sustainability [7][8]. Group 5: Macroeconomic Factors - The U.S. government is facing a prolonged shutdown due to the failure to pass a temporary funding bill, which has led to significant concerns about the economic outlook and investor confidence, exacerbating the market's decline [8][9].