Dow Turns Red, Loses Over 600 Points Of Early Morning Gains As Nvidia Rally Fizzles Out, Rate Cut Concerns Gather Steam

• Nvidia’s shares were hovering in the red at the time, giving up its gains of over 4% during the day’s opening trade.
• A mixed September jobs report and fading hopes of a Fed rate cut in December led U.S. equities to give up their early gains.
• Analysts at Schwab believe that investors remain in a risk-off mode.

U.S. equities reversed all early morning gains by Thursday afternoon as the optimism surrounding tech stocks fizzled out, overshadowed by concerns about the Federal Reserve’s monetary policy action in December. 

The Dow Jones Industrial Average was down by more than 200 points at the time of writing after having surged over 600 points earlier in the day, while the S&P 500 index was down by over 0.6%.

A mixed September jobs report and fading hopes of a Fed rate cut in December led U.S. equities to give up their early gains. According to data from the Bureau of Labor Statistics, the U.S. economy added more-than-expected jobs in September at 119,000, but the unemployment rate rose to a four-year high of 4.4%.

Data from the CME FedWatch tool showed that the probability of a 25-basis-point rate cut in December stood at 39.4%, down from 98.8% a month ago.

Nvidia Corp.’s (NVDA) shares were hovering in the red at the time, giving up its gains of over 4% during the day’s opening trade.

While all the Magnificent 7 stocks were up in Thursday’s opening trade, four of the seven turned negative at the time of writing.

Note: Day’s change as of 12:15 p.m. ET, Nov. 20, 2025

Bull Run Intact

Ryan Detrick, Chief Market Strategist at Carson Group, stated in a post on X that the bull run is still intact. “We are of the opinion we are still in a bull market and we've been OW (overweight) large vs small most of this year,” he said.

However, analysts at Schwab believe that investors remain in a risk-off mode. “Volatility and the dollar, climbed Wednesday and bitcoin slipped another 3.6% back below $90,000 before Nvidia's earnings, suggesting the market remains in risk-off mode despite a slight rebound in major indexes,” the firm said in a recent note.

Nvidia’s Q3 Results

On Wednesday, after the closing bell, Nvidia announced blowout Q3 earnings, surpassing Wall Street expectations. Nvidia reported earnings per share (EPS) of $1.3 on revenue of $57 billion, compared to analyst estimates of an EPS of $1.26 on revenue of $54.62 billion, according to Stocktwits data.

At the time of writing, the SPDR S&P 500 ETF (SPY), which tracks the S&P 500 index, was down by 0.57%, the Invesco QQQ Trust ETF (QQQ) declined 1.04%, while the SPDR Dow Jones Industrial Average ETF Trust (DIA) fell 0.47%. Retail sentiment around the S&P 500 ETF on Stocktwits was in the ‘neutral’ territory.

Also See: BLS Delayed September Jobs Report Shows Stronger Hiring, But Unemployment Rate Climbs To 4-Year High

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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