November 23, 2025 
3 min read 
The AI sector faced renewed scrutiny last week, and equities closed the period lower as high-growth technology names led an ongoing sell-off that began several weeks earlier. Momentum faded after earlier gains, leaving the market direction more cautious entering the holiday week.
Nvidia reported record quarterly revenue of $57 billion, representing a 62.5% increase from the same quarter a year earlier. Net income rose 65% and the company posted a net margin of 56%. Those results initially supported market confidence but were followed by profit-taking as other concerns surfaced.
Major technology firms such as Microsoft, Meta, Tesla, Amazon and Oracle have invested billions in Nvidia chips and AI data center capacity. Market participants continue to seek evidence that these expenditures will deliver tangible returns. Microsoft has stated that an increasing share of its code development is AI-assisted and that AI has improved developer productivity.
Historically, the internet and personal computers took about 15 years to generate measurable productivity gains; artificial intelligence is expected to begin showing significant impact in 5-7 years once the necessary infrastructure and tools are in place.
Last week brought a stronger-than-expected September labor report, but markets reacted cautiously because investors often prefer softer labor data to increase the probability of interest-rate cuts. At the time of writing, the chance of a December interest-rate cut stood at 65%.
Long-term market drivers remain corporate earnings and interest rates; recent record earnings provide a positive signal while investors watch policy developments for further direction.
Trading will be shortened for the Thanksgiving holiday - markets will be closed on Thursday and open for a half day on Friday. Key releases include the delayed U.S. Retail Sales report for September, which was postponed due to the government shutdown, and the Producer Price Index (PPI), which will show inflation trends at the producer level.
Retail sales may be muted ahead of the holiday season, while PPI data will be important in assessing how tariffs and related factors have affected prices.
This material is provided for informational and educational purposes only and does not constitute financial advice. All investments carry risk, including the potential loss of capital.
