Finance

Tech Stocks Plunge: Should You Reduce Exposure Amid Market Sell-Off?

U.S. equities plummeted on Thursday, led by growth stocks, with key indices closing below critical support levels.

November 14, 2025, 9:21 AM

A close-up of a smartphone displaying the Palantir logo and its stock performance over a digital chart. By Spyro the Dragon / Shutterstock.com.

Executive Summary

U.S. equities experienced a broad and sharp sell-off on Thursday, with major indices like the S&P 500, Nasdaq Composite, and Russell 2000 closing below key technical levels.

Growth stocks and the technology sector were particularly hard hit, with high-profile names such as Tesla, Palantir, and Robinhood seeing significant declines.

Analysts suggested investors consider reducing overall market exposure, especially in technology, while noting relative resilience in sectors like medicals, financials, and energy.

The Story So Far

The broad sell-off in U.S. equities, particularly in growth and technology sectors, marks a significant reversal from recent market strength, prompted by analysts advising investors to reduce exposure. This downturn is further influenced by a shift in interest rate expectations, as the odds of a December rate cut fell below 50% following the end of a government shutdown and cautious comments from Federal Reserve policymakers.

Why This Matters

The broad and sharp market sell-off, particularly impacting technology and growth stocks, signals a significant shift in investor sentiment and a potential increase in market volatility, prompting analysts to advise reducing exposure to these sectors. This reversal from recent strength could trigger a rotation of capital into more resilient areas such as financials, energy, and healthcare, influencing portfolio strategies moving forward.

Who Thinks What?

Analysts suggested investors consider reducing exposure, particularly to the technology sector, as growth stock charts appeared “heavily damaged or even broken,” while noting that medicals, financials, shipping, energy, and gold-related plays showed relative resilience.

The market, through investor actions, experienced a broad and sharp sell-off, with growth stocks leading declines across major indices, signaling a significant reversal from recent strength.

U.S. equities experienced a broad and sharp sell-off on Thursday, with growth stocks leading declines across major indices. The S&P 500, Nasdaq Composite, and Russell 2000 all closed below key technical levels, marking a significant reversal from recent market strength. Analysts suggested investors consider reducing exposure, particularly to the technology sector, as several prominent growth names saw substantial losses.

Market Performance

The Dow Jones Industrial Average shed 1.65%, following record highs achieved a day earlier. The S&P 500 index retreated 1.7%, falling below its 21-day moving average and approaching its 50-day line. The Nasdaq Composite sank 2.3%, breaking through its 21-day average but finding support near its 50-day line.

Small-cap stocks were particularly hard hit, with the Russell 2000 tumbling 2.8% to a two-month low, decisively closing below its 50-day moving average. After-hours trading saw Dow Jones futures rise marginally, while S&P 500 futures were little changed and Nasdaq 100 futures edged lower.

Key Stock Declines

Several high-profile growth stocks were among the day’s significant losers. Tesla stock tumbled 6.6%, breaking below its 50-day line and recent base lows, prompting analysis suggesting recent buyers might exit positions. Palantir Technologies fell 6.5%, closing below its 50-day line and a previously identified buy point.

Broadcom stock sank 4.3%, marking its first close below the 50-day line since late April. Robinhood Markets dived 8.6%, decisively undercutting its 50-day line and recent lows. Nvidia stock declined 3.6%, though it held above a key buy point and its 50-day line ahead of its upcoming earnings report.

Earnings and Sector Trends

In corporate news, Applied Materials reported earnings that slightly surpassed expectations and provided an optimistic fiscal Q1 outlook; however, its shares fell modestly overnight after a 3.25% drop on Thursday. Nu Holdings also reported results that edged past views, with its stock rising slightly after hours following a 3.65% decline during regular trading.

While technology and growth sectors experienced sharp declines, some areas of the market showed relative resilience. Medicals, financials, shipping, energy, and gold-related plays generally held up better, though few made significant progress. U.S. crude oil prices climbed 0.3% to $58.69 a barrel. The 10-year Treasury yield rose three basis points to 4.11%, even amid the stock market sell-off, as the odds of a December rate cut fell to just below 50%, influenced by the end of a government shutdown and cautious comments from Federal Reserve policymakers.

ETF Performance

Exchange-Traded Funds tracking growth and technology also reflected the broader market downturn. The Innovator IBD 50 ETF dived 6.8%, with several of its components experiencing double-digit percentage drops. The iShares Expanded Tech-Software Sector ETF shed 2.7%, and the VanEck Vectors Semiconductor ETF gave up 3%. ARK Innovation ETF crumbled 5.25%, with Tesla being a top holding across ARK Invest’s ETFs.

Investor Outlook

The market’s sharp reversal, particularly in the technology sector, prompted suggestions for investors to consider reducing overall exposure. Analysts noted that many growth stock charts appeared “heavily damaged or even broken.” While caution was advised for tech, some analysts suggested considering holdings in sectors such as banks, energy, shipping, and pharmaceuticals, acknowledging that even stocks with relative strength might face headwinds in a tech-led sell-off.