U.S. stocks were mixed on Tuesday, November 25, 2025, as the Dow Jones Industrial Average extended Monday’s rally, the Nasdaq Composite dipped on heavy tech selling, and investors parsed a wave of delayed economic datathat reinforced expectations for a December Federal Reserve rate cut. At the center of the action: Alphabet’s AI-fueled surge and a sharp sell-off in Nvidia and other chipmakers after reports of a big shift in Meta’s AI chip spending. [1]
Key market takeaways for November 25, 2025
- Indexes mixed: The Dow was up around 0.4–0.6% in morning trade, while the S&P 500 hovered near flat and the Nasdaq traded about 0.3–0.5% lower, giving back part of Monday’s tech-driven surge. [2]
- Tech under pressure: Nvidia fell roughly 5–7%, with AMD also sliding around 7–8%, after reports that Meta may spend billions on Alphabet’s AI chips instead of their hardware. [3]
- Alphabet shines: Alphabet shares rose about 2% in regular trading and over 4% pre-market, putting the Google parent on track toward a landmark $4 trillion market valuation as its Gemini AI rollout and new chip demand stoked investor enthusiasm. [4]
- Data deluge supports rate-cut hopes: Delayed reports on retail sales, producer prices, jobs and consumer confidence showed cooling growth but still-contained inflation, leaving markets pricing roughly an 80–85% chance of a quarter-point Fed rate cut in December. [5]
- Retailers pop: Kohl’s and Abercrombie & Fitch surged 20–30%+ on better-than-expected earnings, while Dick’s Sporting Goods and Burlington Stores dropped after weaker results and cautious commentary. [6]
- Breadth stronger than the Nasdaq suggests: Despite the tech slump, roughly four out of five S&P 500 stocks were higher in early trading, with communication services, health care and materials leading sector gains. [7]
How Wall Street looks today after Monday’s big rally
Monday’s session set the stage for today’s more cautious tone. On November 24:
- The Dow Jones Industrial Average rose 0.4% to 46,448.27.
- The Nasdaq Composite jumped 2.7% to 22,872, its best daily gain since May.
- The S&P 500 climbed 1.6% to 6,705.12, with 9 of 11 sectors finishing higher.
- The CBOE Volatility Index (VIX) fell about 12% to 20.52, reflecting easing near‑term fear. [8]
Monday’s rally was driven by a renewed “AI trade”:
- Alphabet’s unveiling of its Gemini 3 AI model earlier in November reignited enthusiasm for big AI platforms. [9]
- AI‑linked chipmakers like Broadcom, Micron and AMD posted big gains on Monday, helping power the Nasdaq’s surge. [10]
At the same time, Federal Reserve officials including New York Fed President John Williams and San Francisco Fed President Mary Daly signaled support for another rate cut at the December FOMC meeting, reinforcing investor expectations that the Fed will continue easing after two earlier cuts this year. [11]
Early and mid-morning trade on November 25: Dow up, Nasdaq down
By Tuesday morning, the tone had shifted from unambiguous tech euphoria to a more nuanced, “good news/bad news” market:
- Shortly after the open, around 9:35 a.m. Eastern,
- The S&P 500 was up about 0.1%,
- The Dow was higher by roughly 288 points (around 0.6%), and
- The Nasdaq was down about 0.3%. [12]
- Later in the morning, as more economic data and company news hit,
- the Dow was still up about 0.4%,
- the S&P 500 had slipped fractionally (around –0.1%), and
- the Nasdaq was off roughly 0.5%. [13]
Under the surface, however, market breadth remained relatively strong: AP reporting indicated roughly 80% of S&P 500 constituents were higher, even as the Nasdaq weakened. Sector-wise, communication services, health care and materials outperformed, while the tech sector lagged. [14]
Alphabet vs Nvidia: AI chip drama dominates the day
The story of the session is the dramatic divergence inside the AI trade.
Alphabet races toward a $4 trillion valuation
- Reuters reported that Alphabet was on track to reach a historic $4 trillion market value, as its sharpened focus on AI tools and infrastructure keeps drawing in investors. [15]
- Pre‑market, Alphabet shares jumped about 4.1% to roughly $331.70, and they remained solidly higher after the open. [16]
- The rally builds on the company’s recent Gemini AI launches, which have been framed as a direct challenge to rival platforms and a key piece of Alphabet’s growth narrative. [17]
In sector terms, Alphabet’s surge helped lift the communication services sector, which was one of the top performers on the day. [18]
Nvidia, AMD and other chipmakers sell off
On the other side of the AI trade:
- Nvidia shares slid roughly 5–7%, depending on the snapshot in the morning, after The Information reported that Meta Platforms is in talks to spend billions of dollars on AI chips from Alphabet for data centers—potentially diverting orders away from Nvidia. [19]
- Advanced Micro Devices dropped roughly 7–8%, while Micron Technology also traded lower. [20]
- Oracle fell more than 6% in some quotes, adding to the tech sector’s drag. [21]
Bloomberg described the backdrop as “tech shares dragging U.S. stocks lower” after Monday’s AI‑fueled gains, with the Nasdaq 100 falling as much as about 1.3% intraday while the broader S&P 500 slipped modestly. [22]
For investors, the message is clear: AI winners can change quickly, and even the most beloved chip names are vulnerable when big customers, like Meta, hint at shifting their hardware budgets elsewhere.
Economic data dump: growth cools, inflation manageable, Fed cut odds rise
Tuesday’s trading was heavily influenced by a cluster of delayed economic reports, held up by earlier government shutdown disruptions. [23]
Key data points:
- Retail sales (September):
- Up 0.2%, slightly below expectations for 0.3%, suggesting consumer spending is slowing modestly. [24]
- Producer Price Index (PPI):
- Headline wholesale inflation rose 0.3%, roughly in line with forecasts.
- Core PPI, which strips out more volatile components, increased 0.1%, a bit softer than expected and a hopeful sign that underlying inflation pressures are gradually easing. [25]
- Labor market indicators:
- A private‑sector jobs report indicated companies shed an average of about 13,500 jobs per week over the four weeks ending November 8, consistent with a cooling but not collapsing labor market. [26]
- Consumer confidence (November):
- The Conference Board index fell to about 88.7, the weakest reading since April and below economist expectations, pointing to more cautious households heading into the holiday season. [27]
Together, these data points reinforced the market’s view that the Fed is likely to cut rates in December:
- Futures pricing via the CME FedWatch tool showed odds of a 25‑basis‑point rate cut in December climbing into the low‑to‑mid‑80% range, up from around 80% or lower just a week ago. [28]
- Zacks and other commentators highlighted remarks from Fed officials Mary Daly and John Williams, who have both recently signaled openness to another cut, noting that labor market risk now looms larger than residual inflation. [29]
In the bond market, the 10‑year Treasury yield eased to about 4.01% from 4.04% on Monday, reflecting growing confidence in a forthcoming cut and a slower economy. [30]
Retailers steal the show: Kohl’s and Abercrombie soar
Beyond mega‑cap tech, retail earnings injected some drama into the tape:
- Kohl’s (KSS) surged more than 30% after the department store chain delivered a surprise profit where Wall Street had anticipated a loss, sparking hopes that its turnaround efforts are gaining traction. [31]
- Abercrombie & Fitch (ANF) jumped roughly 20–21% as it reported stronger‑than‑expected quarterly earningsand raised the lower end of its guidance for full‑year revenue and profit. [32]
- Dick’s Sporting Goods (DKS), by contrast, slid around 3%, with management emphasizing inventory clean‑ups and store rationalization at recently acquired Foot Locker locations. [33]
- Burlington Stores (BURL) sank in the low double digits (around 11%) after reporting softer‑than‑expected comparable sales. [34]
These moves highlighted a bifurcated consumer landscape: select retailers with tight inventory control and differentiated brands are still finding ways to beat expectations, while those facing margin pressure or sluggish trafficcontinue to struggle.
Sector moves and cross‑asset signals
Even as tech sagged, other parts of the market quietly improved:
- Communication services (helped by Alphabet and Meta), health care and materials were among the best‑performing S&P 500 sectors. [35]
- The information technology sector lagged, dragged down by chipmakers and some large‑cap software names. [36]
In other markets:
- Bitcoin traded near $86,200, off its overnight highs around $89,000, hinting at some cooling after a sharp crypto run‑up. [37]
- The U.S. dollar index slipped about 0.3%, consistent with rising expectations for easier monetary policy. [38]
- WTI crude oil futures fell roughly 2% to about $57.70 a barrel, while gold climbed around 1%, a classic combination when investors hedge growth concerns with safe‑haven assets amid falling yields. [39]
What today’s action means for investors
For traders and long‑term investors alike, November 25, 2025 sends a few clear messages:
- AI isn’t a one‑way bet.
The same AI story that lifted Nvidia, AMD and other chipmakers on Monday is boosting Alphabet today while punishing its would‑be hardware rivals. Customer concentration and contract risk matter just as much as technology leadership. - Breadth is quietly improving.
Even as the Nasdaq slides, broad participation across sectors—especially retail, communication services, health care and materials—suggests the rally is broadening beyond a handful of mega‑cap tech names. That’s typically healthier for market stability. - Macro data is now “just weak enough” for a cut.
Softer retail sales, weaker confidence and a cooling job market, paired with manageable inflation, give the Fed room to cut without panicking investors about a recession. Markets will be laser‑focused on any Fed communication between now and the December meeting. - Holiday calendar will amplify moves.
With U.S. markets closed on Thursday for Thanksgiving and closing early on Friday, liquidity tends to thin out, making intraday swings more pronounced in both directions. [40]
Levels and themes to watch into the holiday
Looking ahead to the rest of the week:
- Can the S&P 500 hold above Monday’s 6,700 area?
Monday’s strong close near 6,705 is now a short‑term reference point. Sustained trading above that zone would reinforce the idea that the latest AI‑and‑Fed‑driven leg higher remains intact. [41] - Will Nasdaq’s pullback stay shallow?
After its best day since May on Monday and a drop of roughly 0.5–1.3% in Tuesday’s trade, the Nasdaq’s ability to stabilize will be critical for risk appetite across growth stocks. [42] - How far can Alphabet’s run go?
With the company edging toward a $4 trillion valuation and leading the AI narrative today, investors will be watching for any follow‑through in demand for its in‑house AI chips and its Gemini platform—and the degree to which that comes at the expense of legacy chip suppliers. [43] - Fed communication and market expectations.
Fed officials’ speeches, plus any hints from Washington about the future of Fed leadership, will be closely parsed as the market leans heavily toward a December cut. [44]
For now, November 25, 2025 is shaping up as a consolidation day: the Dow is pushing modestly higher, the S&P 500 is catching its breath after a big Monday, and the Nasdaq is reminding investors that even in an AI bull market, tech stocks can fall fast when the narrative shifts.
References
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