Nvidia shares swung sharply after an early 5% surge following earnings, closing lower as investors increasingly question whether the economics of the AI boom can justify the sector’s soaring valuations. The reversal capped the worst week for US equities since April, with renewed concerns over consumer stress and rising default rates weighing on sentiment.
Crypto markets also came under pressure. Bitcoin posted its weakest month since 2022, extending a broad retreat across digital assets.
In Asia, Japan approved a $135 billion stimulus package aimed at offsetting household purchasing-power losses and supporting demand. Still, regional markets slumped, with both China and Japan falling more than 2%.
Europe opened sharply lower as well. The region’s private-sector picture offered mixed signals, with France’s composite PMI improving to 49.9 in November from 47.7 in October — still below the 50 threshold that separates expansion from contraction.
Geopolitically, Ukraine confirmed receipt of a 28-point peace plan drafted by the US administration, though officials offered no timeline for further negotiations.
Risk-off sentiment dominated early trading. European stocks dropped 1.5%, and US futures pointed to another negative open. Analysts warn that markets are “flying blind,” with a scarcity of economic data releases adding to uncertainty around the durability of the US consumer and the potential unwinding of the AI trade.