Tech stocks, cryptocurrencies, and gold all plunged; U.S. stocks broke key support levels, and the American market faced a "broad sell-off."

On Monday, November 17 local time, a fierce sell-off swept through the U.S. financial markets, affecting nearly all asset classes—from surging tech stocks to cryptocurrencies and even gold—with few escaping unscathed. Amid mounting concerns about the sustainability of the AI boom and the economic outlook, investors rushed to sell risk assets, causing major stock indices to break below key technical support levels and prompting a sharp rise in market risk aversion.

The latest market developments show that both the S&P 500 Index and the Nasdaq Composite Index closed below their 50-day moving averages for the first time in 138 trading days, breaking the longest streak of gains since May this year. The Dow Jones Industrial Average experienced its worst three-day performance since April, closing down 1.2% or 557 points on Monday. The Nasdaq dropped 0.8% while the S&P 500 fell 0.9%.

This sell-off was not limited to the stock market. Gold futures, considered speculative by some analysts, fell back to $4,068.30 per troy ounce. Spot gold prices dropped to near the $4,000 level.

The cryptocurrency market was also hit hard, with Bitcoin prices falling below $92,000, turning its annual rise negative. Panic in the market pushed the CBOE Volatility Index (VIX) to its highest level since April, highlighting growing investor anxiety.

Behind this market turmoil is collective investor nervousness ahead of key events. This week, Nvidia will report earnings, which are seen as a bellwether for AI chip demand, and the delayed September employment data due to a government shutdown will also be released. Meanwhile, the market is increasingly wary of tech giants’ reliance on massive bond issuances to fund capital expenditure, coupled with ongoing uncertainty about the Fed’s interest rate policies, together forming the macro backdrop for the current "all-out sell-off."

U.S. Stocks Break Key Technical Levels, AI Boom Cools Off

Monday’s decline was an important technical signal for U.S. stocks.

Nearly all major indices broke key technical support: the S&P 500, Dow Jones, and Nasdaq fell below their 50-day moving averages, and the RTY index broke below its 100-day moving average. Technical analysts usually interpret a break below such critical moving averages as a sign of a possible reversal in short-term market trends.

Tech stocks were the epicenter of this round of sell-offs. Although Berkshire Hathaway disclosed an increased stake in Alphabet, pushing its stock up 3.1%, this did not lift the entire sector’s sentiment. As Berkshire reduced its holdings in Apple, Apple’s shares fell 1.8%. Additionally, most of the "Tech Seven" including Nvidia, Meta, and Amazon declined, as did AI server providers such as Super Micro Computer and Dell Technologies, as well as companies like Oracle and CoreWeave.

Data indicates that the index tracking large tech stocks has fallen to its lowest closing level in nearly a month.

Meanwhile, the "most shorted stocks" index fell to a two-month low, signifying waning confidence in previously popular stocks.

S&P 500 Breaks Key Level—6,725 Points, Market Faces 10% Correction Risk

The S&P 500 not only broke the closely watched 50-day moving average, but also fell below 6,725 points. Analysts fear this drop could turn into an all-out correction of at least 10%.

Goldman Sachs’s Lee Coppersmith previously pointed out that a break below 6,725 could prompt quantitative trend-following funds known as CTAs (Commodity Trading Advisors) to switch from buyers to sellers.

John Roque, technical analysis chief at 22V Research, noted that the Nasdaq Composite is flashing some "ugly" signals. He said that the number of constituents hitting 52-week lows now exceeds those hitting 52-week highs, a sign of market weakness suggesting further rebound is unlikely. Roque predicts the Nasdaq will continue to fall, with the decline possibly expanding to 8%.

The deterioration in market breadth intensifies analysts’ concerns. Dan Wantrobski, technical strategist at Janney Montgomery Scott, said: "Market breadth is extremely poor, and the stock market is in a vulnerable position." He forecasts a 5% to 10% correction in the S&P 500 by the end of December.

Credit Market Alarm Bells, Amazon Bond Sale Falters

Stock market weakness echoes growing stress in the credit market. Data shows that credit spreads for investment-grade and high-yield corporate bonds are widening at an accelerating rate, even more than the VIX. This signals intensifying investor concern over corporate default risk.

Amazon’s $15 billion bond issuance on Monday served as a litmus test for the market’s credit health. Although reportedly heavily subscribed, the final pricing spread on these bonds was higher than existing bonds, indicating investors are demanding a higher risk premium. Behind this is the market’s scrutiny of tech giants raising large debts to fund AI infrastructure.

Osman Ali, Co-Head of Quantitative Investment Strategies Global at Goldman Sachs Asset Management, said: "There will likely be winners in the (AI field), but it’s clear some companies will not be able to compete in this new world."

Credit concerns over AI-related firms are spreading. Credit default swap (CDS) spreads for "hyperscaler" companies such as Oracle and cloud provider CoreWeave keep widening.

Among them, CoreWeave’s spread has surged significantly, while Oracle’s spread trend is seen as "an ominous sign" by the market.

Bitcoin Forms "Death Cross," Gold Loses Its Safe Haven Aura

Beyond traditional risk assets, those expected to provide a hedge also failed to hold ground.

Bitcoin prices plunged on Monday, falling below the $92,000 mark, erasing all gains made in 2025, and its 50-day moving average crossing below the 200-day moving average to form a "death cross" technical pattern. Of note, Bitcoin also hit a new stage low the last time a death cross appeared in April.

Shares of crypto exchange Coinbase also plunged 7.1%. Some market analysts believe Bitcoin’s early decline on Monday may have served as a leading indicator dragging down the broader stock market.

Meanwhile, gold has lost its safe haven status. According to The Wall Street Journal, some analysts believe gold’s recent trading patterns resemble those of a speculative stock, rather than a traditional safe asset. On Monday, spot gold fell to around $4,000. Silver also slumped, breaking through the key $50 level.

With nearly all asset classes falling, the U.S. Dollar Index was one of the few winners, posting a strong rebound.

Macro Uncertainty Clouds Outlook, Investors Await Key Guidance

Today’s market pessimism is rooted in deep macroeconomic and monetary policy uncertainty. On one hand, the Fed’s policy path remains unclear and traders have reduced their bets on a rate cut in December. Fed Vice Chair Philip Jefferson said on Monday that rate cuts should proceed "slowly," offering no clear direction to markets.

On the other hand, investors face complex economic data. According to the U.S. Commerce Department, nonresidential construction spending declined m/m in August, but data center investment was a rare highlight. Other data showed New York State manufacturing survey beat forecasts and overall construction spending unexpectedly jumped, further reducing expectations of Fed rate cuts.

Additionally, concerns over the private credit market have surfaced. Asset manager Blue Owl saw its stock plunge after its non-traded funds restricted investor redemptions.

Well-known investor Jeffrey Gundlach warned that the $1.7 trillion private credit market is producing "junk loans," comparing it to the subprime mortgage crisis before 2008 and saying "the next big financial market crisis will come from private credit." All of these factors intensify investor caution as they await Nvidia’s earnings and key employment data.

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