Wall Street Under Pressure: CoreWeave and Nvidia Shake Markets Amid AI Valuation Concerns

• How Are Major Indices Performing Today?
• Why Is Michael Burry Betting Against AI Giants?
• What’s the Latest on the Government Shutdown?
• Trump’s $2,000 Tariff Dividend: Real or Rhetoric?
• Why Did CoreWeave’s Stock Crash 14%?
• SoftBank Dumps Nvidia: Smart Move or Missed Opportunity?
• Tech Titans Double Down on AI Infrastructure
• Earnings Roundup: Who’s Up and Who’s Down?
• FAQ: Your Burning Questions Answered

Wall Street consolidates after a sharp rebound, with the Nasdaq and S&P 500 dipping while the Dow Jones edges higher. Michael Burry’s bearish bets on Nvidia and Palantir spark debates over AI valuations. CoreWeave’s stock plunges despite strong revenue growth, and SoftBank exits Nvidia to fund its AI ambitions. Meanwhile, a potential government shutdown resolution looms, and Trump floats a $2,000 tariff dividend. Dive into the latest market moves, earnings surprises, and geopolitical twists shaping financial headlines.

How Are Major Indices Performing Today?

Wall Street is catching its breath this Tuesday after yesterday’s rally. The Nasdaq, which surged nearly 2.3% on shutdown relief hopes, slipped 0.73% to 23,354 points. The S&P 500 dipped 0.31% to 6,811, while the Dow Jones defied the trend with a 0.33% gain to 47,525. Traders seem to have moved past shutdown jitters but are now wrestling with AI’s astronomical valuations—cue Michael Burry’s latest short positions.

Why Is Michael Burry Betting Against AI Giants?

The "Big Short" investor is back in the spotlight, this time targeting Nvidia and Palantir. On X (formerly Twitter), Burry argued that cloud giants are underestimating equipment depreciation by $176 billion between 2026–2028, artificially inflating profits. "Spending billions on Nvidia chips won’t magically extend hardware lifespans," he quipped, promising more details November 25. Skeptics note Burry’s January 2023 "sell" call preceded a historic market rally—so take his doomscrolling with a grain of salt.

What’s the Latest on the Government Shutdown?

A Senate-approved bill to end the 42-day stalemate now heads to the House. The deal funds federal operations until January 30 but excludes Democrats’ healthcare repayment demands. Reuters reports bipartisan tensions linger, with a vote on healthcare postponed to next month. The shutdown has already disrupted air travel, furloughed workers, and delayed food aid for millions—making this resolution urgent.

Trump’s $2,000 Tariff Dividend: Real or Rhetoric?

The former president floated a $2,000-per-person dividend funded by tariff revenues, though Treasury Secretary Scott Bessent admitted the idea hasn’t been fleshed out. It might manifest as tax cuts—think tipped wages, overtime, or car loan deductions. Meanwhile, TRUMP teased 50-year mortgages to boost housing access and hinted at reducing Indian tariffs, claiming a trade deal is imminent. "They’ll like us again soon," he told reporters.

Why Did CoreWeave’s Stock Crash 14%?

Despite Q3 revenue doubling year-over-year to $1.36 billion and a $55.6 billion backlog, the AI infrastructure provider’s shares nosedived. CFO Nitin Agrawal trimmed 2025 revenue guidance to $5.05–5.15 billion, citing data center delays. CEO Michael Intrator remained bullish: "Our position as the go-to AI cloud platform has never been stronger." Investors, however, balked at widening losses ($110.1M net loss vs. $359.8M a year ago).

SoftBank Dumps Nvidia: Smart Move or Missed Opportunity?

SoftBank sold its entire Nvidia stake for $5.83 billion to bankroll AI projects like Stargate data centers and robot factories. The timing raises eyebrows—Nvidia’s chips power the AI boom, and SoftBank famously sold early before ChatGPT’s 2022 surge. With OpenAI’s valuation up $14.6 billion since SoftBank’s investment, Masayoshi Son seems all-in on AI, even as Meta and Alphabet face ROI scrutiny.

Tech Titans Double Down on AI Infrastructure

Google pledged €5.5 billion ($6.4B) for German data centers, while Microsoft unveiled a $10B AI hub in Portugal with 12,600 next-gen Nvidia GPUs. Not to be outdone, Nebius (down 4%) announced a $3B Meta deal after Q3 revenue skyrocketed 355%—though net losses tripled to $119.6M. The Dutch firm also plans a $25M ATM stock offering, betting big on AI’s infrastructure gold rush.

Earnings Roundup: Who’s Up and Who’s Down?

• Occidental Petroleum (+2.5%): Q3 profit beat at $661M, with production hitting 1.465M barrels/day.
• Rocket Lab (+4.3%): Record $155M revenue (up 48%), targeting $170–180M next quarter.
• Paramount Skydance (+11%): Post-merger streaming shines—Paramount+ hits 79M subs, with price hikes coming.

FAQ: Your Burning Questions Answered

What triggered CoreWeave’s stock drop despite strong revenue?

Investors fretted over delayed data center projects and a slight guidance cut, overshadowing robust growth. The market’s hyper-sensitive to execution risks in the AI arms race.

Is Burry’s Nvidia short a contrarian signal?

Possibly. His track record is mixed—right on subprimes, wrong on the 2023 rally. Watch for his November 25 follow-up.

How credible is Trump’s $2,000 dividend?

Unclear. Treasury officials called it "exploratory," likely morphing into tax cuts rather than direct payments.