Dow drops 300 points, Nasdaq turns positive following three-day rout: Live updates – CNBC

Lead

On Friday, Nov. 13, 2025, U.S. equity markets opened mixed after a volatile week that culminated in Thursday’s sharp sell-off. The Dow Jones Industrial Average fell 312 points (0.7%), while the Nasdaq Composite rebounded 0.2%, ending a three-day slide; the S&P 500 traded roughly flat. The moves followed Wednesday’s brief push above 48,000 for the Dow and Thursday’s worst daily showing since Oct. 10. Investors cited worries about stretched AI valuations, Oracle’s plunge, shifting Fed rate expectations and fresh trade and corporate headlines.

Key Takeaways

• The Dow closed down 312 points, or 0.7%, on Friday, reversing part of this week’s swings after a roughly 800-point drop on Thursday.
• The Nasdaq rose 0.2% Friday, snapping a three-day loss, though it was on track to erase a seven-week winning streak with a week-to-date decline of about 0.6%.
• Traders cut the probability of a December 25-basis-point Fed cut to just over 51%, down from 62.9% earlier this week and 95.5% a month ago (CME FedWatch).
• Oracle’s recent sell-off and doubts about the AI-driven trade pressured tech names; Nvidia fell about 2% and the XLK sector ETF slid 1.2% on Friday.
• Bitcoin continued its pullback, trading around $96,293 and down roughly 3.5% on the day after intraday weakness below $95,000 was reported.
• Corporate headlines roiled individual stocks: Merck’s deal for Cidara, takeover interest around Warner Bros. Discovery, and Walmart’s CEO succession weighed on market sentiment.

Background

This week’s volatility has roots in concentrated gains among AI-related technology and cloud companies that pushed major indices to multi‑week advances. Many of those gains were built on lofty forward multiples and heavy expectations for rapid AI-driven revenue growth, while some names also leaned on elevated debt issuance and large planned capital expenditures. Oracle’s sharp decline—amplified by its unique exposure to an OpenAI cloud deal—helped crystallize investor concerns that not all cloud and AI-exposed stocks share the same balance-sheet strength as hyperscalers.

Monetary policy expectations added another layer of uncertainty. Markets had increasingly priced a December rate cut, but Fed officials’ recent commentary suggested inflation remains a concern, narrowing the odds. The U.S. government shutdown that ended after more than six weeks removed one source of data blackout, yet the interruption prompted questions about missing releases and their potential impact on economic interpretation. Together, these forces fed a risk-off impulse that accelerated Thursday’s losses and left investors reassessing positioning heading into the coming policy decision.

Main Event

Trading on Friday reflected a tug-of-war: early pressure pushed futures and equities lower in premarket trade, but the Nasdaq recovered modestly while the Dow finished materially lower. Thursday’s sell-off—marked by an approximately 800-point Dow decline—eroded gains from Wednesday, when the Dow briefly cleared the 48,000 threshold. Technology stocks bore the brunt of the pain on Thursday as headline names fell more than 2%, but by Friday some of those stocks steadied as bargain hunting and rotation into defensives offset further declines.

Macro drivers included shifting Fed-cut odds: the CME FedWatch Tool showed the market’s probability of a 25-basis-point cut in December declining to just above 51%, down noticeably from earlier in the week. That recalibration increased caution among traders whose positions had been predicated on easier policy. Concurrently, corporate developments created idiosyncratic moves—Merck agreed to acquire Cidara for close to $9.2 billion, lifting that biotech’s shares, while Walmart’s announcement that CEO Doug McMillon will retire effective Feb. 1 spurred a near 3% drop in its shares.

Cryptocurrency also tracked the risk-off tone: Bitcoin slid into the mid‑$90,000s, extending a multi‑day descent after briefly reclaiming seven-figure levels earlier in the week. Market structure dynamics—such as ETF flows, dealer inventories and margining around large-cap tech—compounded price moves, creating periods of outsized intraday volatility in certain names.

Analysis & Implications

The market’s short-term sensitivity to AI headlines highlights a broader concentration risk: gains had become concentrated in a handful of companies whose valuations assume continued rapid adoption and monetization of new AI capabilities. Oracle’s setback served as a reminder that dependency on a single large cloud partner, or a thinner cash cushion, can make otherwise large companies appear riskier in a stressed scenario. Investors will likely demand clearer fundamentals—consistent revenue conversion, margin resilience and capital discipline—before reassigning premium multiples.

Interest-rate expectations remain the dominant macro variable. A lower probability of a December cut raises the hurdle for risk assets to advance absent stronger economic or earnings signals. If the Fed holds off on cuts, risk appetite could remain muted, particularly for long-duration equities such as high-growth tech. Conversely, any sign the Fed pivots back toward easing would likely quicken a recovery in cyclicals and growth names that already show stretched positioning.

On the corporate front, takeover chatter and M&A activity—illustrated by Merck’s acquisition of Cidara and reported bidder interest in Warner Bros. Discovery—can create pockets of volatility and opportunity. Active managers may find attractive entry points amid dislocation, but the broader market’s trajectory will depend on the interplay between policy expectations, earnings momentum and the persistence of AI-driven revenue acceleration across a wider set of firms.

Comparison & Data

The table highlights the contrast between Thursday’s abrupt declines and Friday’s partial stabilization. While the Nasdaq regained a sliver of ground, its week-to-date performance still reflects a pause in the momentum that had sustained a seven-week advance. The Dow’s weekly standing remains slightly positive, underscoring how headline-driven moves can produce outsized daily swings without immediately altering longer short-term trends.

Reactions & Quotes

Market strategists and executives framed the sell-off as a blend of healthy correction and technical unwind. Analysts noted that broken chart patterns and rapid de-risking in crowded positions can take time to rebuild into sustainable rallies.

This pullback is a healthy reset; many charts failed to hold and investor sentiment needed refreshing.

Yung-Yu Ma, PNC Asset Management (Chief Investment Strategist)

Long-term growth investors, by contrast, saw opportunity in the dip and emphasized selective buying rather than wholesale retreat.

I’m looking for bargains and trying to understand where opportunities are amid the drawdown.

Ron Baron, Founder & CEO, Baron Capital

At the same time, some large institutional voices urged focus on structural potential in AI while warning about valuation disconnects.

We’re likely on the precipice of significant adoption, but the market is pricing a disconnect between usage and multiples.

Mary Callahan Erdoes, CEO, J.P. Morgan Asset & Wealth Management

Unconfirmed

• Reports of the U.S.-Switzerland tariff agreement cited an X post and a morning CNBC comment; full official documentation and detailed tariff schedules were to be released later and thus remain pending confirmation.
• Intraday reports that Bitcoin briefly traded below $95,000 earlier in the session are based on exchange snapshots and price feeds; consolidated final prints and exchange-level details were not yet reconciled.
• Initial media reports of bidder interest in Warner Bros. Discovery cited unnamed sources; the scope and timing of any formal offers had not been publicly confirmed.

Bottom Line

This week’s swings reflect a market recalibrating concentrated AI-driven gains, shifting rate expectations and episodic corporate news. Thursday’s severe one-day losses removed some froth but did not, as of Friday’s close, signal a broad-based reversal across all sectors: the Dow remains slightly positive on the week while the Nasdaq shows modest weakness.

Going forward, investors should watch three variables closely: Fed messaging and the December meeting odds, consolidation of revenue and margin evidence from AI-exposed companies, and the cadence of corporate actions that can spark isolated volatility. Absent clearer, broad-based earnings upside or a renewed policy easing signal, volatility is likely to persist into year-end.

Sources

• CNBC — Live market coverage and corporate headlines (News)
• CME Group FedWatch Tool (Official market probability tool)