US stocks took a sharp downturn on Thursday, as the broad rebound sparked by NVIDIA's stellar earnings quickly fizzled out. Doubts about AI valuations and whether the Federal Reserve will cut rates again in December intensified, leading to a comprehensive decline across the four major indices. The crypto market fared even worse, with the total market cap dropping from its previous high of $4.3 trillion to $3.01 trillion, a staggering 30% plunge. Bitcoin (BTC) hit a low of $86,100 yesterday, marking the first time since rebounding from the April tariff liberation day low of $74,508. Ethereum (ETH) dipped to a low of $2,790, its lowest since mid-July. Over the past 24 hours, $817 million in positions were liquidated, with BTC accounting for the bulk at $404 million.

Non-Farm Data Exceeds Expectations, NVIDIA Fails to Boost Market

NVIDIA's stock reversal dragged down the overall market. The day before after hours, the chipmaker released quarterly results that beat expectations and an optimistic fourth-quarter sales forecast, initially pushing the stock up 5%. Despite CEO Jensen Huang repeatedly assuring that demand for its current-generation Blackwell chips far exceeds expectations and denying the existence of an AI bubble, NVIDIA's stock ultimately closed down 3%.

The September jobs report, delayed due to the government shutdown, showed US non-farm payrolls added 119,000 jobs, surpassing economists' expectations and once again dampening hopes for a December rate cut. Investors are now not only worried about overvalued AI stocks but also contemplating the impact on the sector if the Fed doesn't cut rates further.

Thursday's performance extended the relatively weak trend in AI trades and the market this month, as investors took profits after a strong year. NVIDIA (NVDA) stock has fallen nearly 11% in November, marking its worst monthly performance since March.

Crypto Market in Dire Straits, Over $800 Million Liquidated Network-Wide

The crypto market is in dire straits, with the total market cap dropping from its previous high of $4.3 trillion to $3.01 trillion, a staggering 30% plunge.

Bitcoin hit a low of $86,100 yesterday, marking the first time since rebounding from the April tariff liberation day low of $74,508. Ethereum dipped to a low of $2,790, its lowest since mid-July. Over the past 24 hours, $817 million in positions were liquidated, with BTC accounting for the bulk at $404 million.

US spot Bitcoin ETFs recorded a net inflow of $75.47 million on the previous day (11/19), marking the first positive trading day after four consecutive days of heavy outflows. However, Ethereum ETFs continued to decline, with a net outflow of $37.35 million, marking seven straight days of outflows. Solana products stood out again, with inflows of $55.61 million following the successive additions by newcomers Fidelity and 21Shares.

But none of this could salvage investor confidence. The crypto sector's recent performance has lagged far behind tech stocks, gold, and other asset classes, with no positive catalysts in sight for a short-term reversal.

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