Post-Market Recap: November 4, 2025 - Tech Decline Amid AI Valuation Concerns

This analysis is based on the Financial Times report [1] and Nasdaq after-hours earnings coverage [2] published on November 4, 2025, which documented a significant market shift from AI-driven enthusiasm to cautious sentiment.

U.S. equity markets finished lower across the board, with technology stocks bearing the brunt of selling pressure. The S&P 500 declined 0.25% to 6,771.54, while the Nasdaq Composite dropped 0.44% to 23,355.78 [0]. The Dow Jones Industrial Average fell 0.13% to 47,085.25, and the Russell 2000 underperformed with a 0.62% decline to 2,432.32 [0]. Market breadth was notably negative, with declining issues outnumbering advancers by 1.34-to-1 on the NYSE and 1.6-to-1 on Nasdaq [1]. Total trading volume reached 19.62 billion shares, below the 20-session average of 21.11 billion [1].

A clear defensive rotation characterized the session, with Consumer Defensive stocks leading gains (+0.64%) while growth-oriented sectors lagged [0]. Basic Materials (+0.32%) and Energy (+0.06%) also provided relative strength. Conversely, Utilities (-0.85%), Financial Services (-0.74%), and Consumer Cyclical (-0.59%) were the worst performers [0], reflecting broader risk-off sentiment.

The ongoing government shutdown, now in its second month, continued to create significant market uncertainty by delaying crucial economic data releases including JOLTS job openings and potentially Friday’s nonfarm payrolls report [1]. This data vacuum has left investors with limited visibility into the Federal Reserve’s near-term monetary policy stance. Additionally, AI valuation concerns intensified as cautious comments from top bank executives added to jittery sentiment on Wall Street [1].

Extended trading saw significant reactions to major earnings releases, particularly in the technology sector. Advanced Micro Devices (AMD) declined 3.70% to $250.05, Axon Enterprise (AXON) fell 2.48% to $706.13, and Arista Networks (ANET) dropped 2.56% to $153.55 [0]. Super Micro Computer (SMCI) experienced the steepest decline at 6.40% to $47.50 [0], continuing its recent struggles after missing consensus estimates in the previous two quarters [3]. Amgen (AMGN) showed relative strength, rising 0.14% to $296.70 [0].

The market’s defensive positioning during the regular session combined with technology sector weakness in after-hours trading suggests a broader reassessment of risk appetite. The divergence between declining equity markets and falling VIX (down 1.55% to 17.17) [1] indicates complex market dynamics where investors are reducing equity exposure without necessarily increasing options-based protection.

Asian equities fell 0.8% overnight, with South Korean regulators issuing a rare “investment caution” on SK Hynix Inc., whose stock has surged 240% this year [2]. This development highlights growing global concerns about AI-related valuations and potential regulatory interventions. The U.S. dollar’s extension of its winning streak to a fifth session, reaching its highest level since August against most major currencies [2], adds additional pressure on multinational corporations.

The market’s failure to maintain recent AI-driven momentum suggests potential exhaustion in growth stocks. The VIX Futures remaining anchored around 19.9 [2] despite the spot VIX decline indicates underlying caution that could manifest in increased volatility during tomorrow’s session.

• Government Shutdown Impact
  : The extended shutdown continues to delay critical economic data, creating uncertainty around Fed policy and economic outlook [1]
• AI Valuation Corrections
  : Growing concerns about AI stock valuations could trigger broader technology sector corrections [1]
• Earnings Season Volatility
  : Mixed after-hours reactions suggest potential for increased volatility as earnings season progresses
• Currency Headwinds
  : The strengthening dollar [2] could pressure multinational corporation earnings

• Defensive Sector Strength
  : Consumer Defensive outperformance [0] suggests continued relative value in defensive positioning
• Selective Technology Opportunities
  : Post-earnings declines in quality technology names may present entry points for long-term investors
• Volatility Trading
  : The divergence between spot VIX and VIX Futures [2] could create volatility trading opportunities

• Major indices finished lower: S&P 500 (-0.25%), Nasdaq (-0.44%), Dow (-0.13%), Russell 2000 (-0.62%) [0]
• Defensive sectors outperformed: Consumer Defensive (+0.64%), Basic Materials (+0.32%), Energy (+0.06%) [0]
• Market breadth negative with declining issues leading on both exchanges [1]
• Below-average trading volume at 19.62 billion shares [1]

• S&P 500: Support at 6,750, resistance at 6,820
• Nasdaq: Support at 23,300, resistance at 23,600
• VIX: Key level at 17.00 for sentiment indication

• Continued earnings season with technology and healthcare focus
• Potential resolution or extension of government shutdown
• Federal Reserve official commentary for policy direction
• Geopolitical developments and trade tensions

• AMD: -3.70% to $250.05 [0]
• AXON: -2.48% to $706.13 [0]
• ANET: -2.56% to $153.55 [0]
• SMCI: -6.40% to $47.50 [0]
• AMGN: +0.14% to $296.70 [0]