Key Takeaways
- Nvidia shares fell more than 3% on November 21, despite strong Q3 earnings, amid worries over persistent Fed rate hikes.
- Exact Sciences surged over 50% following Abbott’s announcement to acquire the company in a $23 billion cash deal.
- Alphabet stock jumped 10% after Berkshire Hathaway revealed a $4.3 billion stake and AI-driven optimism boosted investor sentiment.
Major US technology and consumer stocks showed significant volatility last week as markets absorbed a mix of earnings reports, Federal Reserve policy concerns, and acquisition news. Nvidia’s shares dropped sharply despite delivering robust third-quarter results, driven by fears that elevated interest rates will continue. Meanwhile, Exact Sciences soared on Abbott’s planned $23 billion acquisition, and Alphabet rallied after Berkshire Hathaway’s substantial equity purchase reignited confidence in its AI leadership.
Technology Stocks Face Fed Rate and AI Valuation Pressure
On November 21, Nvidia (NASDAQ: NVDA) shares slid over 3% following an initial post-earnings spike. The decline was triggered by a strong US jobs report that heightened expectations the Federal Reserve may maintain its restrictive monetary stance, casting doubt on a potential rate cut in December. This reinforced investor concerns about stretched valuations in the AI sector, overshadowing Nvidia’s solid quarterly results.
Truist analyst William Stein remains bullish on Nvidia’s long-term outlook. He highlighted upside from higher average selling prices for Rubin products, anticipated unit growth through 2026, and Nvidia’s potential to expand shipments to China. Stein reiterated Nvidia’s position as “the AI company” amid a cautious market environment.
Oracle (NYSE: ORCL) also underperformed, tumbling more than 6% and hitting lows not seen since June. The company has become a focal point of unease around the AI data center investment cycle. Market jitters intensified after reports surfaced that Oracle plans to add $38 billion in debt to finance AI infrastructure growth, widening its credit default swap spreads and pressuring both its bonds and equity.
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Exact Sciences Acquisition Boosts Shares, Consumer Sector Slides
Shares of Exact Sciences (NASDAQ: EXAS) skyrocketed more than 50% after Abbott Laboratories (NYSE: ABT) announced a pending acquisition valued at approximately $23 billion. Abbott will pay $105 per share in cash, driving a steep rally in EXAS stock as the deal offers a significant premium.
In contrast, Bath & Body Works (NYSE: BBWI) suffered sharp declines, dropping 28.8% on November 20 and another 5.3% on November 21. The company missed consensus earnings and revenue estimates, issuing disappointing EPS guidance. Goldman Sachs downgraded the stock from Buy to Neutral. Analyst Kate McShane emphasized a strategic shift towards a partnership with Amazon and a retreat from adjacency categories. Management projects negative top-line growth in fiscal 2026, delaying growth prospects to 2027.
Alphabet Gains on Berkshire Hathaway Stake and AI Optimism
Alphabet (NASDAQ: GOOGL) rallied strongly, increasing over 10% last week. Berkshire Hathaway disclosed a new stake valued at roughly $4.3 billion, fueling investor enthusiasm. Alongside this, optimism around Alphabet’s AI capabilities surged, with Mizuho analysts stating that market sentiment reflects the belief that Alphabet “has already won the AI game.” They further noted that Alphabet possesses the essential attributes and technology to dominate the AI space through the upcoming year.
Meanwhile, bitcoin-related stocks, including MicroStrategy (NASDAQ: MSTR), declined amid bitcoin’s weakness below $85,000. MSTR shares dropped over 14% for the week and are down nearly 43% year-to-date, mirroring cryptocurrency volatility.
Stocks: Market Outlook
As of late November 2025, key US indices — including the Dow Jones, S&P 500, and Nasdaq — are set for weekly losses amid broad market caution. Concerns surrounding AI sector valuations and Federal Reserve policy persistently weigh on sentiment. Nvidia and Oracle’s declines underscore investor skepticism toward AI infrastructure spending, while Alphabet’s rebound signals confidence in AI leadership consolidation. The Exact Sciences acquisition by Abbott highlights ongoing biotech M&A activity despite challenging market conditions. Conversely, struggles in consumer discretionary, exemplified by Bath & Body Works, reflect structural growth challenges. Investors are closely monitoring upcoming economic data and central bank decisions as they reassess the sustainability of recent tech gains and overall market direction.
