Core Insights - The U.S. stock market experienced significant volatility on November 20, 2025, with major indexes initially rallying due to Nvidia's strong earnings but ultimately closing lower amid concerns about AI valuations and Federal Reserve interest rate policies [1][2][3] Market Performance - Major U.S. stock indexes reversed course after opening with gains, with the Nasdaq Composite falling 2.2% to 22,078.05, the S&P 500 down 1.6% to 6,538.76, and the Dow Jones Industrial Average dropping 0.8% to 45,752.26, reflecting a 1,115-point swing during the day [2][3] - For the week, the S&P 500, Dow, and Nasdaq are down 2.9%, 3%, and 3.6% respectively, indicating ongoing market pressure [3] Earnings Reports - Nvidia reported impressive Q3 fiscal year 2026 earnings with EPS of $1.30 and record revenue of $57 billion, exceeding analyst expectations, but its stock closed down 3.2% after an initial 5% jump [4] - Walmart's shares rose 6.5% following better-than-expected Q3 results and an increased fiscal 2026 outlook, reporting adjusted EPS of $0.62 on revenue of $179.5 billion [5] - Other companies like Lowe's, Dycom Industries, and TJX also reported strong earnings, with Lowe's shares jumping 4% and Dycom's shares surging 9.8% [6] Market Sentiment and Future Outlook - The market's skepticism about AI valuations is evident, with tech companies like AMD, Micron, and Oracle experiencing declines between 6.6% and 10.9% [7] - Investors are closely monitoring economic data and the Federal Reserve's interest rate decisions, with recent employment data suggesting stronger-than-expected job growth [7] - Analysts caution that while November has historically been strong for the market, valuations remain stretched, and 2026 may present challenges for investors [8]
Wall Street’s Wild Ride: AI Rally Fades, Indexes Plummet Despite Nvidia’s Strong Earnings