Markets In Focus: The Week That Was and What’s On Tap Week-Ending 11/21/2025
The Week That Was
The S&P 500 fell 2.0% and the Nasdaq dropped 2.7% in their worst week since April, as investors trimmed AI and mega-cap growth exposure on valuation and spending concerns. Thursday’s tech rout—tied to crypto’s breakdown and Fed-rate repricing—was followed by Friday’s relief rally after dovish Fed comments steadied risk sentiment.
Markets saw extreme whiplash Thursday, with the Nasdaq swinging from +2.5% to –2%. This move was driven almost entirely by two non-fundamental forces: a sharp breakdown in crypto and a sudden repricing of the December Fed meeting. Bitcoin remains the market’s fastest risk-appetite signal, and when it loses trend, the same capital pools that fund high-growth tech and AI systematically de-risk. Algorithms are explicitly wired to follow these correlations, making this a crypto-driven unwind—not an indictment of AI fundamentals.
At the same time, the Fed backdrop shifted meaningfully. The BLS cancellation of the October jobs report removed the final data point markets expected before the December meeting. With no fresh labor data, traders pushed rate-cut expectations into 2026, tightening conditions just as positioning was stretched.
I don’t see anything that is fundamentally broken in this market. Earnings have been very good, the economy appears solid (with some cracks in the labor markets), and the Fed is in a downward cycle. Once crypto stabilizes and the Fed path resets, liquidity should rotate back toward assets with durable earnings and secular AI demand. I still believe a December cut remains firmly on the table—a sentiment that was echoed by New York Fed President John Williams on Friday.
The Week Ahead
U.S. equity markets enter a holiday-shortened week, with Thanksgiving on Thursday, November 27 and a 1:00 p.m. ET close on Friday. Trading volumes will likely be thin, but several meaningful catalysts arrive before the market settles in for turkey and stuffing.
The macro calendar is dense despite the shortened week. Wednesday delivers the second estimate of Q3 GDP, advance durable goods orders, international trade in goods, new home sales, and the PCE Deflator—the Fed’s preferred inflation gauge. With all major releases concentrated ahead of the holiday, investors will get a compressed read on growth, demand, and pricing pressures. Markets also continue to monitor any remaining catch-up data tied to the recent government shutdown, particularly labor-related releases that could influence rate-cut timing if they surprise.
Earnings slow but still offer important signals. Deere & Company reports and remains a closely watched barometer for industrial and agricultural demand. Retailers such as Abercrombie & Fitch and Dick’s Sporting Goods will be parsed for early holiday-season commentary and consumer health. Dell and Zscaler add incremental insight into enterprise spending and AI-driven demand trends.
Despite the lighter schedule, the week carries enough data to shape near-term rate expectations and sector-level positioning into December.
Summary: With the S&P 500 off 4% from its highs and uncertainty about the pace of Fed rate cuts, the interplay of data and guidance next week could dictate whether markets sustain their year-end rally or pause into December.
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The S&P 500 generally represents performance of 500 large companies listed on exchanges in the U. S. It is one of the most commonly followed equity indices. The Nasdaq Composite Index is a market-weighted index that measures the performance of more than 3,000 common equities listed on the Nasdaq Composite Market. The Russell 2,000 Index is a market-cap weighted index that measures the performance of approximately 2,000 of the smallest companies in the Russell 3,000 Index. The MSCI ACWI captures Large and Mid-Cap representation across 23 Developed Markets (DM) and 24 Emerging Markets (EM) countries. With 2,921 constituents, the index covers approximately 85% of the global investable equity opportunity set. FactSet Research System is a financial data and software company that provides research for Wall Street professionals and individual investors.
