Stock Market Live November 14: S&P 500 (SPY) Falls as Tech Gets Hit Hard Again

Futures aren’t looking so hot this morning.

At the moment, the S&P 500 is down about 66 points, which is dragging the SPDR S&P 500 ETF (SPY) down about $6.45. The Dow is down 304, as the NASDAQ sinks 355 points.

For one, there’s unease over the Federal Reserve’s interest rate decision. Traders are now pricing in a 52% chance we’ll see a quarter-point cut in December, as compared to the 62.9% likelihood we saw yesterday, and 95% from last month.

Two, tech stocks come under pressure again.

Nvidia (NASDAQ: NVDA | NVDA Price Prediction), Advanced Micro Devices (NASDAQ: AMD), and Palantir Technologies (NASDAQ: PLTR) are all extending their losses, with the Technology Select Sector SPDR Fund (NYSEARCA: XLK) deep in the red, too. Not helping, there are more concerns about a bursting AI bubble.

However, according to some analysts, there is no bubble.

Goldman Sachs doesn’t believe there’s a bubble.

Instead, as noted by Quartz.com, “The financial services company, in a note to investors this week, said that it believes the AI story is just getting started — and the investments that seem huge today will be dwarfed by the benefits AI will deliver.

Long term, the investment bank says that AI adoption could add $20 trillion to the U.S. economy. AI, according to Goldman Sachs, is already delivering those gains in productivity when deployed right.”

In addition, Mary Callahan Erdoes, CEO at JPMorgan Asset and Wealth Management, dispelled worries over valuation, saying that AI is presenting opportunities not fully appreciated or understood yet,” as noted by CNBC. “AI itself is not a bubble. That’s a crazy concept… We are on the precipice of a major, major revolution in a way that companies operate,” Erdoes added. 

“So, if you say to yourself, is AI in a bubble, I feel you have to get very granular on how you’re going to answer that, because in the U.S., we’re starting to gain traction, but we’re nowhere near the ability to have the stuff all to the bottom line.” 

Bitcoin Just Fell Under $100,000 

Now trading at $94,918, Bitcoin is taking a massive hit along with the broader market.

Not helping, Bitcoin ETF withdrawals jumped to $870 million. Plus, there’s a good deal of market uncertainty, as investors question whether the Federal Reserve will cut interest rates in December. If the central bank holds off on cutting interest rates, Bitcoin could come under even more pressure. After all, when borrowing costs are higher, risk-on assets are less appealing.

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