S&P 500 ends down for a 4th day as valuation worries weigh, Home Depot drops
Tue November 18, 2025 5:14 PM
For the fourth straight day, fears of over-stretched valuations, being at their highest since 2000, once again brought all the indexes way down, creating the longest S&P losing streak in three months and moving the index below its 50-day moving average for the first time seven months. Also weighing heavily on sentiment is Home Depot lowering its annual profit forecast and with corresponding Q3 earnings that disappointed. There’s also the damper of private labor reports showing a sharp uptick in the number of people on unemployment in September and October.
But truth be told, all the caution is really all about Nvidia’s Q3 which comes in after the bell on Wednesday. Then the first government labor report since the shutdown rears its head on Thursday. There is a great deal of skepticism right now about AI valuations, of which Nvidia is at the center, and there is an assumption that Nvidia’s report will confirm that which, if so, will cause an even greater sell off but, if not, another wild buying spree. So, we can expect more selling tomorrow which makes Thursday the really critical day. If both Nvidia and the labor report disappoints, look out. If not, the bulls will keep running. The good news is that Q3 earnings have been much higher than expected and the current forecast for earnings growth is at 16.9%, double what it was in early October. With investors on the fence regarding Nvidia and labor, volume came in at 18.6 billion, well below the 4-week average of 20.2 billion.
DJ: 46,590.24 -557.24 NAS: 22,708.07
-192.51 S&P: 6,672.41
-61.70 11/17
DJ: 46,091.74 -498.50 NAS: 22,432.85
-275.23 S&P: 6,617.32
-55.09 11/18
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