Weekly Market Insights | AI Delivers Rocky Week for Stocks

Heightened volatility was on Wall Street’s mind last week, as investors continued to focus on valuations of artificial intelligence (AI) stocks, and the September unemployment rate came in higher than expected posing a challenge for FOMC leaders on the direction of the future interest rate decision for year-end.

The Standard & Poor’s 500 Index fell 1.95% closing Friday's session at 6,602.99.  It is now down 3.5% for November, but up around 12% for the year.  The Nasdaq Composite Index declined 2.74%. The Dow Jones Industrial Average slid 1.91%. The MSCI EAFE Index, which tracks developed overseas stock markets, slumped 3.25%.^1,2

More Jobs, but Higher Jobless Rate

September payrolls in the US rose by 119,000, more than the 51,000 increase expected in a Bloomberg survey. The unemployment rate edged up to 4.4%, the highest since October 2021, while Wall Street had expected it to hold steady at 4.3%.

The report was delayed by almost seven weeks by the record-long federal government shutdown, which ended last week.

Investors are weighing what the data might mean for the Federal Reserve's December policy meeting. Minutes from the October meeting showed policymakers held "strongly differing views" on the next rate decision.

AI Valuation Worries

Technology led the sector declines this week, falling 4.7%, followed by a 3.3% slide in consumer discretionary and a 3.1% drop in energy. Industrials, financials, utilities, materials and real estate also fell.

Advanced Micro Devices (AMD) shares fell 17%, and Micron Technology (MU) dropped 16%. Nvidia shed 5.9% despite stronger-than-expected fiscal Q3 results. Alphabet's (GOOGL, GOOG) shares rose 8.4% as its Google unit unveiled Gemini 3, its latest artificial intelligence model.

Wedbush described the selloff as another "DeepSeek Moment," noting investor nerves around the sustainability of the AI buildout.

Despite the fear, the companies committing billions of dollars to AI are doing so because they see durable demand from enterprises, developers, and cloud customers.

             “More than any transformation before it, this generation of AI is radically changing every layer of the tech stack.”(Satya Nadella, Microsoft CEO)

             “We’re also going to invest hundreds of billions of dollars into compute to build superintelligence. We have the capital from our business to do this.”(Mark Zuckerberg, Meta CEO)

             “This is that industry we were talking about. This is the Industrial Revolution”(Jensen Huang, Nvidia CEO)

Their public comments consistently frame AI not as a short-lived trend, but as a defining technological shift for the next decade and beyond.

Among the top decliners in consumer discretionary, Home Depot (HD) shares fell 5.25% this week. The home-improvement retailer's fiscal Q3 earnings unexpectedly fell, and the company lowered its bottom-line outlook for the full year.

The energy sector's drop came as crude oil futures also fell on the week. EQT Corp. (EQT) shed 4.8% and Marathon Petroleum (MPC) declined 4.7%.

Communication services climbed 3%, health care rose 1.8%, and consumer staples edged up 0.8%.

This week the market is rebounding from last weeks declines which is encouraging as we head into Turkey Day. The market will be closed on Thursday for the Thanksgiving holiday, followed by a shortened session on Friday, known as "Black Friday."  

Earlier in the week, economic data will include September retail sales and the September producer price index. Both reports were delayed by the government shutdown.

^{Source: YCharts.com, November 22, 2025. Weekly performance is measured from Monday, November 17, to Friday, November 21. TR = total return for the index, which includes any dividends as well as any other cash distributions during the period. Treasury note yield is expressed in basis points.}

This Week: Key Economic Data

Tuesday: Retail Sales (Sept). Case-Shiller Home Price Index (Sept). Business Inventories (Sept). Consumer Confidence. Pending Home Sales.

Wednesday: Weekly Jobless Claims. Durable Goods Orders (Sept).

Thursday: THANKSGIVING HOLIDAY—MARKETS CLOSED

Friday: Chicago Business Barometer.

^{Source: Investors Business Daily - Econoday economic calendar; November 21, 2025. The Econoday economic calendar lists upcoming U.S. economic data releases (including key economic indicators), Federal Reserve policy meetings, and speaking engagements of Federal Reserve officials. The content is developed from sources believed to be providing accurate information. The forecasts or forward-looking statements are based on assumptions and may not materialize. The forecasts also are subject to revision.}

This Week: Companies Reporting Earnings

Monday: Agilent Technologies (A)

Tuesday: Analog Devices, Inc. (ADI), Dell Technologies Inc. (DELL), Autodesk, Inc. (ADSK), Workday, Inc. (WDAY)

Wednesday: Deere & Company (DE)

^{Source: Zacks, November 21, 2025. Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Companies may reschedule when they report earnings without notice.}

“Your time is limited, so don't waste it living someone else's life." 

– Steve Jobs

Outstanding Tax Bill? Consider an Offer in Compromise

An Offer in Compromise is a federal tax program that allows taxpayers to enter into an agreement with the IRS to settle their tax debt for less than the amount they owe. This agreement is an option when taxpayers can't pay their full tax liabilities or when paying the entire balance owed would cause financial hardship. The goal is a compromise that suits the best interests of both parties. 

The IRS considers various circumstances when reviewing OIC applications, including the applicant’s:

• Income
• Expenses
• Asset equity

There is also an application to apply for an OIC. Taxpayers who meet the definition of a low-income taxpayer don't have to pay this fee.

This information is not a substitute for individualized tax advice. Please discuss your specific tax issues with a qualified tax professional. 

Tip adapted from IRS.gov⁸

It's All in a Walk: 3 Tips for Integrating Walking Into Your Day

Getting more movement is always a good idea, but finding the time to fit a walk into your day can be hard. These tips will make it easier to get up and get moving:

• Keep a pair of sneakers in your car to walk whenever you have a few extra minutes! This could be during your lunch break at work, if you’re early for a doctor’s appointment, or while you’re waiting to pick up the kids from school.
• Walk when you might otherwise sit. We’re always waiting for something, so walk around instead of sitting while you wait! It’s okay if you can’t go far; at least you’re getting your steps in.
• Have multiple routes, so you don’t get bored walking the same route daily.
• Invite friends for a walk instead of getting coffee or lunch.

Tip adapted from Help Guide⁹

Christine likes grapes but not potatoes. She likes squash but not lettuce, and peas but not onions. Following the same rule, will she like pumpkins or apples?

Last Week's Riddle: Glittering points that downward thrust. Sparkling spears that cannot rust. What are they?

Answer: Icicles.

Eurasian Lynx

Bavaria, Germany

Footnotes and Sources

^{1. WSJ.com, November 21, 2025}

^{2. Investing.com, November 21, 2025}

^{3. CNBC.com, November 18, 2025}

^{4. CNBC.com, November 19, 2025}  

^{5. WSJ.com, November 20, 2025}

^{6. CNBC.com, November 21, 2025}

^{7. WSJ.com, November 20, 2025}

^{8. IRS.gov, May 22, 2025} 

^{9. HelpGuide.org, June 12, 2025}

^{10. MT News Wires, YCharts, November 17-23, 2025}