Executive Summary
The Story So Far
Why This Matters
Who Thinks What?
U.S. equities experienced a broad decline on November 13, 2025, as a significant sell-off in technology stocks drove major indices lower, with the Nasdaq Composite falling 1.7%. The market downturn was exacerbated by rising Treasury yields and investor uncertainty stemming from missing economic data after a six-week government shutdown, which President Donald Trump recently ended. Simultaneously, Bitcoin’s price dropped to approximately $107,000 amid a cautious stance from the Federal Reserve and a shift in investor sentiment away from risk assets.
US Stock Market Sees Broad Decline
The Nasdaq Composite led the market’s decline, sinking 1.7% amidst heavy selling. The S&P 500 also dropped 1.1%, while the Dow Jones Industrial Average fell 382 points, or 0.8%, retracting from fresh highs achieved earlier in the week. The downturn reflected a broader rotation of traders into value sectors, with healthcare, industrials, and financials showing relative strength.
Technology and artificial intelligence (AI) stocks were particularly hard hit. Nvidia’s shares dropped about 4.18%, with investors re-evaluating elevated valuations in the AI semiconductor market. Broadcom fell 5.65% due to similar concerns over high valuations and competitive pressures, while Alphabet declined 2.28% amidst fears of cooling demand for high-growth tech services and digital advertising.
Beyond the tech sector, Disney stock dropped 9% after reporting mixed fiscal fourth-quarter results, with revenue missing expectations. Conversely, Firefly Aerospace surged over 20% following a narrower loss and a revenue beat, and Dillard’s gained more than 8% after exceeding revenue estimates.
Government Shutdown’s Aftermath and Market Uncertainty
The end of the federal government’s six-week shutdown, formalized by President Donald Trump signing the reopening bill, introduced further uncertainty into the markets. Key economic data, including inflation and jobs reports, remained offline, with some reports potentially never being released, leaving investors with incomplete information.
U.S. Treasury yields moved higher, with the 10-year Treasury note yield rising modestly to about 4.10%. Higher yields typically increase borrowing costs and make fixed-income investments more attractive relative to equities, particularly those with lofty valuations. Markets are also anticipating the Federal Reserve’s December meeting, with the CME FedWatch Tool pricing in approximately a 51% chance of a rate cut, indicating persistent investor caution.
Bitcoin Price Under Pressure
Bitcoin (BTC) experienced significant pressure, with its price dropping to around $107,000. This decline sparked concern among traders and investors, as market sentiment turned sharply negative, with analysts warning of potential further drops to $88,000 if key support levels are not maintained.
The primary catalyst for Bitcoin’s slide was the Federal Reserve’s cautious tone following its latest interest rate decision. Although the Fed reduced rates last week, Chair Jerome Powell’s emphasis that another December cut was not guaranteed dampened optimism across financial markets, leading to widespread selling in risk assets.
Additional factors contributing to Bitcoin’s decline included institutional investors withdrawing nearly $800 million from Bitcoin and Ethereum ETFs last week. Long-term holders sold over 100,000 BTC in October, breaking the cryptocurrency’s typical “Uptober” bullish streak, while global economic tensions and a negative Coinbase premium further weighed on sentiment.
Outlook Remains Cautious
The combined pressures from a tech stock sell-off, rising Treasury yields, and a cautious Federal Reserve stance have created a fragile market environment. With economic data still incomplete post-shutdown, analysts anticipate continued volatility. Both equity and cryptocurrency markets are bracing for choppy trading as investors seek clearer signals on inflation, job growth, and future monetary policy.
