Stock Market Today: Sell-Off Hits AI and Bitcoin Names as Michael Burry Targets Nvidia and Palantir

U.S. stocks fell on Tuesday as valuation worries weighed on high-flying technology and cryptocurrency names. Major indexes were firmly in the red, led lower by artificial intelligence leaders Nvidia and Palantir Technologies after “Big Short” investor Michael Burry disclosed sizable bearish positions. Bitcoin-linked stocks also came under pressure as risk appetite cooled.

Major Indexes Slide as Sellers Take Control

The Dow Jones Industrial Average dropped about 0.6% in afternoon trade, with Nvidia (NVDA) its biggest loser. The tech-heavy Nasdaq composite fell around 1.7%, while the S&P 500 retreated about 1%. Small-caps were also hit, with the Russell 2000 down roughly 1.4%.

Market breadth skewed clearly negative. On the Nasdaq, declining stocks beat advancers by more than 3-to-1. On the New York Stock Exchange, losers topped gainers by nearly 5-to-3, underscoring a broad risk-off tone even as overall volume ran lighter than Monday.

‘Big Short’ Burry Bets Against AI Leaders

The selling in mega-cap tech was amplified by fresh disclosures from Michael Burry’s Scion Asset Management. In its latest 13F filing, the firm reported large put option positions against two of the market’s most prominent AI winners:

• Nvidia (NVDA): Put options totaling about $187 million of underlying stock as of Sept. 30.
• Palantir Technologies (PLTR): Put options tied to roughly $912 million of underlying stock.

Nvidia shares fell more than 3%, while Palantir slid around 8%. The bets highlight Burry’s mounting concern that parts of the AI trade have entered bubbly territory, following months of steep gains and aggressive valuations.

Burry, best known for correctly calling the housing market collapse in 2008, has recently used posts on X to warn about speculative excess and froth in certain corners of the AI and tech space. The new filings suggest he is now expressing those concerns directly through sizeable downside wagers on some of the sector’s highest-profile names.

Bitcoin and Crypto Stocks Lose Altitude

Cryptocurrency-related stocks joined the sell-off as investors stepped back from risk-on trades. Bitcoin fell nearly 5% to around $101,500 after briefly dipping below the key $100,000 level, before reclaiming that psychological line.

That weakness weighed heavily on crypto-linked equities:

• Coinbase Global (COIN): Dropped more than 6%, moving further below its 50-day moving average while it trades within a consolidation that has a 444.64 buy point.
• Mara Holdings (MARA): Fell nearly 5%, digging deeper below its 50-day line. The stock gave back gains after a breakout from a cup base with a 21.50 entry and has already triggered the standard 7% sell rule.
• Riot Platforms (RIOT): Lost nearly 5% and slipped back under its 21-day exponential moving average. Shares remain extended from the 25% profit zone of a cup base with a 15.34 buy point.
• CleanSpark (CLSK): Declined roughly 5% and now sits about 29% below its 52-week high of 23.61, set on Oct. 15.

The moves highlight how tightly bitcoin miners, exchanges and infrastructure providers remain tied to the underlying cryptocurrency’s price and broader risk sentiment.

Big Money Managers Warn of a Larger Drawdown

Adding to Tuesday’s cautious tone, top executives at Goldman Sachs (GS) and Morgan Stanley (MS) flagged the possibility of a meaningful equity pullback during a Hong Kong summit.

David Solomon, CEO of Goldman Sachs, reiterated his view that investors should expect a 10% to 20% drawdown in equity markets over the next 12 to 24 months. At the same time, he emphasized that conditions remain “pretty constructive” and that he does not see an immediate catalyst for such a decline, noting that many stocks are still trading at or near record highs.

Ted Pick, CEO of Morgan Stanley, echoed the sentiment that drawdowns of 10% to 15% should be considered a normal part of market cycles, and need not be triggered by a major macroeconomic shock.

Both banks recently beat third-quarter profit and revenue expectations, with Goldman shares rising more than 1% in a stage-two flat base and Morgan Stanley trading near record levels after an extended run from a May breakout.

Other Notable Movers: Uber, Hut 8, Norwegian Cruise Line

Outside of AI and crypto names, several high-profile companies moved sharply on earnings and guidance:

• Uber Technologies (UBER): Fell more than 6% in heavy trade. The company beat third-quarter earnings and revenue estimates, helped by tax and investment gains, but operating income missed forecasts. Investors were also unimpressed by fourth-quarter guidance, with projected gross bookings of $52.25 billion–$53.75 billion and adjusted EBITDA of $2.46 billion, slightly below the $2.47 billion consensus. The stock dropped below its 50-day moving average in a late-stage flat base with a 101.99 buy point.
• Hut 8 (HUT): A bitcoin mining infrastructure provider, pared steeper losses to trade down about 4.5% despite beating third-quarter profit and sales estimates. Shares remain extended after a powerful run that has lifted the stock nearly 150% so far this year.
• Norwegian Cruise Line (NCLH): Sunk more than 12% after missing third-quarter revenue expectations and issuing full-year 2025 profit guidance that disappointed investors. The stock fell further below its 50-day line and plunged under the 200-day moving average, leaving it down around 22% year to date.

Nasdaq 100 & Dow Movers: Exelon, Micron, Amazon, Apple, Microsoft

Within the Nasdaq 100, there was a clear divergence between winners and losers at the open:

• Exelon (EXC) and Marriott International (MAR) gained more than 2% each, making them early standouts on the upside.
• Micron Technology (MU) and MicroStrategy (MSTR) each sold off more than 4%, reflecting renewed pressure on chip and bitcoin-sensitive names.

On the Dow Jones, several mega-cap tech stocks were under pressure from the opening bell:

• Amazon (AMZN): Fell more than 2%, threatening to end a two-day winning streak after breaking out past a 238.85 buy point.
• Apple (AAPL): Slipped about 0.8%, setting up a third straight losing session.
• Microsoft (MSFT): Lost around 0.7%, putting it on track for a fifth consecutive down day.

Early Action in Nvidia, Tesla and Palantir

Before the opening bell, several high-profile growth stocks were already signaling a rough session:

• Nvidia (NVDA): Shares were down nearly 2% in early trade, threatening to erase Monday’s gain. The stock recently hit a new high and remains extended from a buy point at 184.48.
• Tesla (TSLA): Skidded almost 3% in premarket action. On Monday, the electric-vehicle leader had cleared an early buy point at 467, but Tuesday’s weakness threatened to knock it back below that level.
• Palantir (PLTR): Dropped more than 7% Tuesday morning, even after delivering a strong third quarter. Adjusted earnings came in at 21 cents per share, double year-ago levels, while revenue rose 63% to $1.81 billion, beating forecasts. Guidance for the fourth quarter also topped expectations. Shares had hit a new high Monday, closing about 12% above a 188.20 buy point before Burry’s short bet and the broader sell-off knocked them lower.

Earnings Roundup: Shopify, Spotify, Ferrari and More

A number of other companies moved on earnings and guidance updates:

• Dave (DAVE): Soared more than 12%.
• Embraer (EMBJ): Slipped about 1%.
• Ferrari (RACE): Added nearly 1%.
• Pfizer (PFE): Lost nearly 1%.
• Shopify (SHOP): Declined more than 3%.
• Spotify (SPOT): Jumped nearly 6%.
• Uber (UBER): Skidded nearly 5% in premarket trade before extending losses.
• Vertex Pharmaceuticals (VRTX) and Wingstop (WING): Each dropped roughly 4% in early action.

Macro Backdrop: Yields, ETFs and Commodities

The broader macro environment remained relatively calm but still leaned risk-off:

• The Invesco QQQ Trust (QQQ), which tracks the Nasdaq 100, lost about 1.6%.
• The SPDR S&P 500 ETF (SPY) gave back roughly 1%.
• The 10-year Treasury yield eased by two basis points to around 4.09%.
• Oil prices fell to about $60.70 per barrel.
• Bitcoin slumped more than 5%, trading near $101,100 in midday action.

Key Takeaways for Investors

• AI leaders under scrutiny: Michael Burry’s large put positions in Nvidia and Palantir highlight growing skepticism about stretched valuations in the AI trade.
• Crypto exposure remains high beta: Bitcoin-linked stocks continue to trade as leveraged bets on risk sentiment and cryptocurrency prices.
• Prepare for normal pullbacks: Comments from Goldman Sachs and Morgan Stanley suggest investors should be ready for 10–20% drawdowns even without a major macro shock.
• Technical levels matter: Breaks below key moving averages and failed breakouts can trigger additional selling as traders respect risk rules.
• Macro still mixed, not panicked: Stable bond yields and softer oil prices help, but the tone has clearly shifted toward caution.

For long-term investors, Tuesday’s action serves as a reminder to keep position sizes appropriate, monitor risk in crowded themes like AI and crypto, and avoid chasing extended stocks at lofty valuations.