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Here’s what’s happening in the stock market today:
The stock market today is experiencing a tech-led selloff with major indices showing declines, particularly in technology shares amid concerns about lofty valuations and profit sustainability. 📉 The S&P 500 has dropped around 0.9%, Nasdaq down about 1.3%, while the Dow Jones fell approximately 0.7%, pressured by weakness in healthcare stocks. Palantir's stock notably fell over 7% after earnings despite beating estimates, reflecting growing investor caution even in high-performing AI-related stocks. 🖥️💼
Major Indices Performance 📊
S&P 500 futures are down roughly 1%, with the index falling about 0.9% today.
Dow Jones Industrial Average futures dropped about 0.7%, mirroring a 0.5-0.7% intraday decline.
Nasdaq Composite showed the steepest fall, around 1.3%, as tech shares retreated.
Market Movers 🚀
Palantir shares fell over 7% despite beating Q3 earnings.
Amazon, after a recent AI partnership announcement, had gains but is part of the earlier recent rally fading today.
Other AI and tech stocks such as Nvidia and Microsoft continue to face profit-taking pressure.
Spotify saw gains after exceeding profit forecasts, while Shopify and Uber declined following weaker-than-expected results.
Key Events Driving the Market 🗞️
Investor concern over the sustainability of recent AI-related tech rallies is driving profit-taking and stock pullbacks.
The U.S. government shutdown continuing into its second month dampens sentiment amid economic uncertainty.
Wall Street banks' CEOs have warned of a possible market pullback due to overvalued tech stocks.
Upcoming economic reports and Federal Reserve guidance add to cautious investor positioning.
Investor Sentiment 👀
Investors are cautious and risk-averse amid stretched valuations in the tech sector and geopolitical uncertainties, leading to subdued trading volume and a mixed market tone. Optimism about AI and earnings growth is tempered by warnings from financial leaders about potential corrections, keeping the mood fragile and reactive to earnings and economic data. 🐂⚖️
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TRADE OF THE DAY:
SMH
Name: VanEck Semiconductor ETF (via VanEck Associates)
Symbol: SMH
Current Price: ~ $361.11
Trade
Sell to Open: 1 SMH Nov 21 2025 332.5/327.5 Put Vertical
Total Credit Received: $65.00
Credit per Contract: $65.00 (for one contract covering 100 shares)
Direction: Bullish (put credit spread)
Probability of Profit (PoP): 84.55%
Potential ROI:
Max Risk (Loss): $435.00 (spread width of $5.00 × 100 − $65)
ROI: ($65 ÷ $435) × 100 ≈ 14.9%
Trade Explained in Simple English:
You are selling the 332.5-strike put and buying the 327.5-strike put of SMH, both expiring November 21, 2025, and you collect $65 up front. If SMH stays above about $331.85 at expiration (your break-even point), both puts expire worthless and you keep the credit. Your maximum loss is limited to $435 if SMH drops below $327.50. This is a bullish position that profits if SMH remains above your break-even.
Wall Street Highlights:
News Beyond the Numbers
Palantir's stock declined sharply despite reporting better-than-expected earnings and raising its outlook, raising concerns about AI defense tech valuations. Read more.
Global Payments reported strong third-quarter results with adjusted earnings per share increasing 11% year-over-year, reflecting robust revenue growth and operational efficiency. Read more.
Netflix and ServiceNow announced major share splits, aiming to attract retail investors and increase stock liquidity in the current market environment. Read more.
Goldman Sachs CEO David Solomon issued a warning about a potential 20% decline in stock markets over the next two years amid high valuations and economic uncertainties. Read more.
Investors are closely watching Morgan Stanley and Goldman Sachs CEOs' concerns over elevated tech valuations, which could signal further market pullbacks in the near term. Read more.
Disclaimer: The content provided by OptionPicks is for informational and educational purposes only and should not be construed as investment, financial, legal, or tax advice. We are not registered as a broker-dealer, investment adviser, or financial advisor with the SEC, FINRA, or any other regulatory authority. Options trading involves substantial risk and is not suitable for every investor. Past performance is not indicative of future results, and no representation is being made that any subscriber will or is likely to achieve profits or incur losses similar to those mentioned. You should consult with a licensed financial professional before making any investment decisions.
