Trevis Gipson #99 of the Chicago Bears recovers a fumble by Jared Goff #16 of the Detroit Lions during the second quarter at Ford Field on November 25, 2021 in Detroit, Michigan.

(Mike Mulholland/Getty Images)

A tumble in tech leads the stock sell-off as rate cut pessimism rises

Tech was the worst-performing sector ETF, and six of the Magnificent 7 stocks fell. Speculative stocks and momentum stocks were especially hard hit.

Tasha Matsumoto

11/13/25 4:05PM

The S&P 500, Nasdaq 100, and Russell 2000 all fell hard as the longest government shutdown in US history came to an end and anxiety over backlogged data triggered pessimism that there won’t be a December rate cut. Traders are now pegging the odds of a cut at next month’s meeting at roughly a coin flip. (Comparatively, a month ago, the odds of another cut were 95.5%.)

Tech was the worst-performing sector ETF, and all of the Magnificent 7 fell except for Meta, which eked out a gain.

Goldman Sachs’ basket of high-beta momentum stocks, including Palantir and Applied Digital, suffered its worst day since President Trump’s April tariff announcement.

Speculative stocks tied to the AI boom, quantum computing, and energy, such as Oklo, CoreWeave, SoundHound AI, Tempus AI, D-Wave Quantum, IonQ, Rigetti, Nebius, Cipher Mining, IREN , POET Technologies, Bloom Energy, and Plug Power, were also hard hit.

Stocks that moved higher:

Alibaba ticked up after Bloomberg reported that the e-commerce giant is set to overhaul its mobile AI app to become a fully functioning AI agent.
Cisco saw orders from AI hyperscalers accelerate in its most recent quarter, the company reported yesterday after the close, sending its shares higher.

Stocks that moved lower:

Flutter Entertainment, the parent of top US online sports betting app FanDuel, tumbled after it cut revenue guidance as part of a disappointing earnings report issued yesterday after the close.
The happiest place on Earth is feeling pretty meh today, as Disney dropped after its Q4 revenue missed Wall Street's estimates.
Tilray, Cronos Group, Canopy Growth, and other weed stocks dropped after lawmakers slipped a hemp THC ban into the government funding bill.
High-flying shares of tech hardware firms like Sandisk, Seagate Technology Holdings, and Western Digital — which make products to deal with the deluge of information and data expected to be produced by the AI database build-out — dropped after a Japanese competitor, Kioxia Holdings, reported a lackluster set of quarterly numbers.
Bitcoin dropped below $100,000 and treasury firms Strategy and Strive Inc. took a hit as confidence in the digital treasury play faltered.

Luke Kawa9m

Nvidia’s strong results, guidance lift AI ecosystem

Data center stocks Applied Digital, IREN, CoreWeave, and Nebius as well as foundry giant TSMC and optical communications company Corning are catching a bid in after-hours trading thanks to strong results and guidance from Nvidia.

The chip designer’s massive outlook for Q1 sales — with the midpoint at $78 billion, versus a consensus estimate of $72.8 billion — underscores the magnitude of the near-term demand for AI compute and chips. As if the hyperscalers’ massive capex budgets hadn’t already done that!

To be sure, the advances in these stocks in after-hours trading are fairly mild, since most had been on fire in recent sessions in anticipation of a strong quarter.

Nvidia rises after better than expected Q4 results, big upside surprise in Q1 sales guidance

To be sure, the advances in these stocks in after-hours trading are fairly mild, since most had been on fire in recent sessions in anticipation of a strong quarter.

Luke Kawa

36m

Nvidia rises after better-than-expected Q4 results, big upside surprise in Q1 sales guidance

The chip designer delivered its 13th consecutive bottom-line beat and 14th on the top line.

Max Knoblauch39m

Joby posts smaller loss, larger cash pile than expected in Q4, says it expects US early operations to begin this year

Air taxi maker Joby Aviation reported its fourth-quarter earnings after the bell on Wednesday. Shares climbed more than 3% in after-hours trading.

The company posted a loss of $0.14 per share, beating estimates of a $0.20 loss.

Joby ended the fourth quarter with $1.41 billion in cash (and cash equivalents), compared to Wall Street expectations of $1.01 billion.

Investors have closely watched Joby’s progress with FAA certification, which will be the determining factor for launching commercial air taxi services in the US. As of the end of Q4, Joby said it is 80% complete with the fourth stage of its five-stage certification process, up from 77% in the third quarter. Joby is 12% complete with the fifth stage, up from 10% in Q3.

Earlier on Wednesday, Joby announced it plans to partner with Uber to offer air taxi rides on the ride-hailing app in Dubai later this year. The companies already partner on Blade helicopter rides.

Joby also said it expects US early operations to begin this year, with the White House’s eVTOL (electric vertical takeoff and landing) Integration Pilot Program “set to select at least five sites for mature eVTOL aircraft to begin operating ahead of Type Certification.”

Matt Phillips48m

The Trade Desk plunges on weak Q1 sales guidance

Ad tech platform The Trade Desk offered weak Q1 sales guidance as part of its Q4 earnings numbers, sending the stock down sharply after-hours on Wednesday.

The advertising software company reported:

Adjusted Q4 earnings per share of $0.59 vs. the $0.58 consensus estimate, per FactSet.
Q4 revenue of $847 million vs. the $840.6 million expectation.
Q1 sales guidance of “at least” $678 million vs. Wall Street’s $688.6 million expectation.

The Trade Desk specializes in helping client advertisers shift their ads from traditional linear television toward online streaming services. And the shares posted some impressive gains at times, rising more than 400% over five years starting at the end of 2019.

But the company’s shares have cratered in recent years, in part because of a daunting competitive threat from Amazon’s demand-side advertising platform. Through Wednesday’s close, the stock was down roughly 80% from where it was trading at the end of 2024.

Max Knoblauch54m

Paramount misses on earnings and revenue in its fourth-quarter report

Paramount Skydance reported underwhelming fourth-quarter earnings after the bell on Wednesday, in the midst of its attempt to win the Warner Bros. Discovery bidding war.

For the last three months of 2025, Paramount reported:

An adjusted loss of $0.12 per share, compared to Bloomberg estimates of $0.07 earnings per share.
Revenue of $8.1 billion, missing Wall Street’s expectations of $8.15 billion.

Looking ahead, the company expects Q1 revenue of between $7.15 billion and $7.35 billion, below the $7.39 billion Wall Street consensus estimate.

Earlier this week, Paramount hiked its offer for Warner Bros. to $31 per share. Warner’s board, which has rejected Paramount’s acquisition attempts several times in recent months, said it’s reviewing the new bid.

If WBD determines the Paramount deal to be a superior offer, Netflix will have four days to match it, beat it, or exit the process. Paramount shares have fallen 24% since it made its initial offer for WBD in December.