Good morning, investors. The market suddenly seems much more fragile than it did a week ago when it was breaking all-time highs. Yet the advantage of taking a long-term view as an investor, as our team always does, is that you can always fall back on the same quip: “This too shall pass.”
Let’s nip the bubble talk in the bud.
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Bubbly trading?
Chatters of an AI bubble have exploded over the last several weeks but asset prices have mostly outrun those fears, with the S&P 500 notching multiple record highs in October.
That momentum slowed Tuesday, though, as several prominent market watchers seemed to acknowledge the froth:
Goldman Sachs CEO David Solomon warned of a double-digit drawdown for stocks
Morgan Stanley CEO Ted Pick similarly cautioned about a correction
“Big Short” investor Michael Burry revealed a bearish position against Palantir
ARK Invest’s Cathie Wood reportedly sold 38,000 shares of Palantir ahead of its earnings results
The tech-heavy Nasdaq Composite fell 2% and Palantir dropped 9%.
Meanwhile, bitcoin slipped below $100,000 for the first time since June.
Tech stocks have boomed while Google Search volumes for “market bubble” have too
This raises two questions:
Does this mean there is a tech bubble after all?
If so, is that bubble now popping?
To the first question, my view is no.
As Opening Bell Daily readers know, the S&P 500’s P/E ratio remains well below dot-com levels.
At the same time, single-name Big Tech leaders like Nvidia, Apple and Microsoft have far lower valuations compared to their equivalents back in 2000, while the companies leading the charge in AI command some of the largest balance sheets in history.
Still, half of Wall Street will take the opposing position on that.
As far as the latest sell-off, I’d more readily point to the latest slate of macro-political events than a bubble popping:
Jerome Powell dashed hopes for a guaranteed December rate cut
President Trump’s tariff battle is unfolding in the Supreme Court
The government shutdown is set to be the longest on record
The economic data blackout could be taking its toll on markets
Regional banks are coming off a bout of fraud and bankruptcy issues
Those headwinds hitting all at once would hinder a bull market in any era at least temporarily.
But using a pullback as an excuse to call “bubble” feels misguided — particularly as S&P 500 earnings continue to crush estimates and recession odds have shrunk all year.
Expecting stocks to march higher in a straight line seems far more risky.
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Market snapshot
Elsewhere
📉Job openings fell again in October. That’s according to Indeed’s data, which showed employment opportunities hit their lowest level in more than 4 years. (CNBC)
💊 President Trump wants to sell cheaper weight-loss drugs. His team is negotiating with Novo Nordisk and Eli Lilly to be able to sell their products for $149 through TrumpRX. (WSJ)
🏦 Scott Bessent is ready for the tariff Supreme Court case. The landmark case will begin soon, but the Treasury Secretary said the US has “lots” of options even if the tariffs are shot down. He remains confident, however, in a positive outcome. (CNBC)
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Rapid-fire
Zohran Mamdani won the New York City mayoral race (WSJ)
Shares of Japan’s Softbank Group plunged more than 14% overnight (CNBC)
IBM plans to cut thousands of jobs this quarter (Bloomberg)
Papa John’s stock falls nearly 20% after revealing Apollo withdrew its offer to take chain private (CNBC)
AMD beat earnings estimates and offered strong Q4 guidance (Yahoo Finance)
Pinterest stock tumbled after reporting soft earnings (Barron’s)
Palantir CEO slammed “Big Short” investor Michael Burry for his bets against Palantir and AI (CNBC)
Spotify stock dipped following an earnings beat and mixed guidance (CNBC)
The government shutdown could fuel chaos and delays at airports (Yahoo Finance)
On this day
🗓November 5, 1999: The Nasdaq closed above 3,100 for the first time ever, just two days after first clearing 3,000. It marked an abrupt acceleration in the dot-com melt up.
Thank you for reading. Join our Best Ideas Club to unlock our members-only stock tracker that’s crushing the S&P 500 this year. Here’s me and Anthony Pompliano discussing what we’re working on.
Last thing
It's a K-shaped market over the past month.
Mag 7 +5.4%
Equal-weighted S&P 500 -2.1%— #Kevin Gordon (#@KevRGordon)
1:21 PM • Nov 4, 2025
About me
📰 I’m Phil Rosen, co-founder of Opening Bell Daily. I’ve published books, lived on three continents, and won awards for my journalism, which has appeared in Business Insider, Fortune, Yahoo Finance, Bloomberg and Inc. Magazine.
I write our flagship newsletter to prepare you for each trading day — unpacking markets, economic data and Wall Street with analysis you won’t find anywhere else.
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