The Economic Timesยท2025-11-14 21:34Market Overview - The tech sector showed signs of recovery after a significant sell-off, with the Nasdaq Composite rebounding by 0.13% to 22,900.59, ending a three-day losing streak [10] - The S&P 500 experienced a slight decline of 0.05% to 6,734.11, while the Dow Jones Industrial Average fell by 0.65% to 47,147.48 [10] - Earlier in the day, major indexes had dropped sharply, with the Nasdaq down nearly 1.9%, the S&P 1.4%, and the Dow about 1.3% [10] Investor Sentiment - Investor sentiment remains volatile, oscillating between risk-on and risk-off postures, with expectations of increased 1-2% market movements persisting through year-end as investors reposition and de-risk ahead into 2026 [6][11] - Concerns over elevated tech valuations, heavy debt financing, and soaring capital expenditures in AI contribute to market caution, particularly regarding Oracle's reliance on its cloud deal with OpenAI [5][11] Economic Indicators - A FactSet analysis indicated a 33% quarter-over-quarter decline in mentions of tariffs during S&P 500 earnings calls in Q3 compared to Q2 of 2025, with 238 calls mentioning tariffs, down from 357 in the previous quarter [7][11] - Despite the decrease, tariff mentions remain elevated, ranking as the fourth-highest in the past decade, suggesting easing concerns over trade tensions among US companies [8][11] Federal Reserve Outlook - Expectations for a December interest rate cut have diminished, with the probability of a 25 basis point reduction now below 50%, down from nearly 63% earlier in the week and over 95% a month ago [11] - Some Federal Reserve members express concerns over persistent inflation, which could deter further easing this year, and Fed Chair Jerome Powell noted that limited economic data availability due to a recent government shutdown may impact policy decisions [11]