Tonight’s Highlights | Risk Assets Locked in Fierce Bulls-vs-Bears Battle – U.S. Major Index Futures Turn Green Pre-Market
After the S&P 500 staged a violent intraday reversal yesterday and closed at its lowest level in nearly two months, the tug-of-war between bulls and bears remains intense in Friday’s pre-market session.
A short burst of buying erupted after New York Fed President John Williams – widely seen as the Fed’s No. 3 official – said in prepared remarks that he believes “there is room for rate cuts in the near term.”
As of press time, Nasdaq 100 futures (December 2025 contract) are up 0.42%, S&P 500 futures are up 0.46%, and Dow Jones futures are up 0.53%. Nvidia continues its wild pre-market swings, moving from down more than 3% to briefly flipping positive.
On the technical side, the S&P 500 surged as much as 1.9% intraday yesterday but closed down 1.56%, forming a textbook bearish engulfing pattern. The benchmark has now broken below its 50-day moving average on Monday and its 100-day moving average on Thursday.
(S&P 500 daily chart, source: TradingView)
What makes the whole thing even stranger is that it all unfolded after AI leader Nvidia posted earnings that actually met sky-high expectations, leaving traders scrambling for explanations – ranging from “AI bubble” fears and the nonfarm payrolls report blocking Fed cuts to the classic macro-trading “buy the rumor, sell the news.”
Even Jensen Huang couldn’t help but marvel at just how absurd expectations for Nvidia have become.
Meanwhile, the ongoing crypto rout is also weighing on overall sentiment. As of press time, Bitcoin is still down more than 3% intraday and sitting at its lowest level since early April. Bitcoin is now down over 20% in November alone – its worst monthly drop since June 2022.
(Bitcoin daily chart, source: TradingView)
HSBC chief multi-asset strategist Max Kettner said another leg lower in Bitcoin is further fueling fears of sustained retail outflows: a continued crypto crash could force retail investors to liquidate other assets, such as stocks, to meet margin calls.
Other Market News
Jensen Huang reportedly vents internally: “Market expectations are ridiculously high”
According to leaks, Nvidia CEO Jensen Huang complained during Thursday’s all-hands meeting that “expectations are absurdly high right now” and no earnings report can possibly satisfy them.
He added that he is thrilled with the latest results and stressed that “the market hasn’t fully appreciated the incredible quarter we just delivered.”
Cathie Wood buys Nvidia for the first time since August
Ark Invest’s daily trade disclosure shows the ARK Innovation ETF purchased 93,000 Nvidia shares on Thursday amid the stock’s wild swings – its first active Nvidia addition since early August. Prior to Thursday’s purchase, Ark held more than 1.1 million Nvidia shares at the end of Q3.
The famously contrarian Wood has also been adding to several crypto-related names this week. As of Thursday’s close, the ARKK ETF is down more than 20% from its October peak.
European defense stocks drop to lowest since early September
After Ukrainian President Zelenskyy signaled willingness to work toward the latest U.S.-proposed Russia-Ukraine ceasefire plan, European defense stocks fell to their lowest levels since early September.
Germany’s Renk Group plunged over 9% intraday, approaching a sixth straight down day, while Rheinmetall, Sweden’s Saab, and other major defense names also declined.