The Economic Times·2025-11-21 09:39Core Insights - Nvidia shares experienced volatility, initially rising 5% after a strong Q3 earnings report but closing down approximately 3.15% at $180.64, driven by concerns over high valuations in AI and technology stocks [1][20] - The company reported record revenues of $57 billion, reflecting a 62% year-over-year increase, and provided fourth-quarter guidance that exceeded analysts' expectations [1][20] - Broader market sentiment weakened, with major indices like the S&P 500 and Nasdaq experiencing declines, attributed to fears of an AI-driven bubble and uncertainty regarding Federal Reserve rate cuts [15][20] Company Performance - Nvidia's strong Q3 FY26 results initially boosted its stock, but the momentum quickly faded, dragging the Nasdaq Composite down from a 2.5% intraday rally to a close down 2.15% [6][20] - Other AI-related stocks, such as Advanced Micro Devices, also saw declines, with AMD dropping around 5% after early gains [12][20] - Companies like CoreWeave and IREN Ltd., which are strategic partners with Nvidia, initially saw gains but later reversed, indicating market volatility [13][20] Market Trends - Global markets mirrored the turbulence in U.S. tech stocks, with significant declines in Asian and European indices, including a nearly 11% drop in SoftBank shares [2][8] - The S&P 500 is on track for its worst November since 2008, highlighting deepening fears of an AI-driven bubble [9][20] - Treasury yields stabilized near 4.08%, while oil hovered around $58.09 and gold slipped toward $4,040, reflecting a risk-averse trading environment [7][20] Economic Indicators - The delayed September jobs report showed mixed signals, with hiring exceeding expectations but the unemployment rate rising to its highest level in almost four years, contributing to market uncertainty [17][21] - Japan announced a ¥21.3 trillion ($135.5 billion) stimulus plan to support its economy amid inflation concerns, indicating global policymakers' responses to slowing demand [8][21]