Week In Perspective | AI Delivers Rocky Week for Stocks [24-November-25] — Knoxville, TN | Financial Advisor

Updated: 24-November-25

The Week on Wall Street

Markets spent the week recalibrating around two themes: valuations in the artificial intelligence (AI) sector and the path of Federal Reserve policy. Volatility remained elevated as investors assessed how both forces could shape the next phase of the economic cycle.

The major U.S. equity indexes posted meaningful declines—the Standard & Poor’s 500 Index fell 1.95 percent, the Nasdaq Composite declined 2.74 percent, and the Dow Jones Industrial Average slipped 1.91 percent. Internationally, the MSCI EAFE Index, which tracks developed overseas markets, dropped 3.25 percent.^1,2

The Market Narrative: AI Expectations and Policy Uncertainty

Much of the week’s trading was driven less by surprising data and more by shifting expectations. Investors were focused on quarterly results from two major AI megacap tech leaders, and anticipation alone drove several of the market’s swings. The market’s sensitivity underscored a broader truth: a small group of megacap firms continues to exert outsized influence on index-level performance.^3,4

At the same time, mixed economic signals kept interest rate expectations in flux. Minutes from the Federal Reserve’s October meeting revealed divisions among voting members about the next steps for policy, and the Labor Department’s delayed September jobs report delivered a mixed view of the labor market. Together, these dynamics fueled a market that oscillated between optimism around AI earnings and caution ahead of the Fed’s December meeting.^5,6,7

Labor Market: A Mixed but Important Signal

The delayed September employment report—one of the first major releases since the government shutdown—showed employers added 119,000 jobs, the strongest monthly gain since April. August’s initially reported loss of 4,000 jobs was revised to a 22,000-job gain.⁷

At the same time, the unemployment rate rose to 4.4 percent, slightly above economists’ expectations of 4.3 percent and the highest level in four years. This combination of steady job growth and a higher jobless rate added nuance rather than clarity to the outlook, and it will be an important input as the Federal Reserve approaches its December 9–10 meeting—the last before year-end.⁷

This Week: Key Economic Data

A holiday-shortened week still brings several notable data releases that may help clarify whether recent softness is episodic or part of a broader slowdown:

Tuesday: Retail Sales (Sept); Case-Shiller Home Price Index (Sept); Business Inventories (Sept); Consumer Confidence; Pending Home Sales
Wednesday: Weekly Jobless Claims; Durable Goods Orders (Sept)
Thursday: THANKSGIVING HOLIDAY—MARKETS CLOSED
Friday: Chicago Business Barometer
_{Source: Investors Business Daily - Econoday economic calendar; November 21, 2025

The Econoday economic calendar lists upcoming U.S. economic data releases (including key economic indicators), Federal Reserve policy meetings, and speaking engagements of Federal Reserve officials. The content is developed from sources believed to provide accurate information. The forecasts or forward-looking statements are based on assumptions and may not materialize. The forecasts are also subject to revision.}

This Week: Companies Reporting Earnings

Corporate earnings will also remain in focus, with several companies offering insight into industrial activity, enterprise spending, and tech demand:

Monday: Agilent Technologies (A)
Tuesday: Analog Devices, Inc. (ADI); Dell Technologies Inc. (DELL); Autodesk, Inc. (ADSK); Workday, Inc. (WDAY)
Wednesday: Deere & Company (DE)
_{Source: Zacks, November 21, 2025

Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Investing involves risks, and investment decisions should be based on your goals, time horizon, and risk tolerance. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Companies may reschedule their earnings reports without notice.}

Unsure how how susceptible your plan is to market fluctuations? We can help!