As market participants anticipate solid earnings from Nvidia after the close Wednesday, carnage in bitcoin continues, with the favorite coin dropping to just above 90,000 overnight before bouncing back early morning to just below 92,000. On Tuesday, bitcoin fell to as low as $89,549.
Bitcoin isn't the only asset (if one can call it that) under pressure. The major averages were rocked again on Tuesday, the fourth straight decline for the Dow and S&P, and the fourth in the past five session for the NASDAQ, which popped 30 points on Friday.
From all appearances, not everybody is sold on tech. Beyond the bitcoin breakdown, the AI investment carousel is raising eyebrows across the investment world, as companies involved in the great hyperscaling race are found to be investing capital in each other, raising stock prices for all. Nvidia has investments in many of its own customers, and those customers - including names like Amazon, Alphabet, and Microsoft - and have invested in Nvidia and other companies like Tuesday's revelation of a partnership in Anthropic.
Microsoft CEO Satya Nadella mentioned the quiet part out loud, saying, “We will use Anthropic models, they will use our infrastructure, and we’ll go to market together.”
Tech companies investing money in each other as they buy goods and services from the same, evokes claims of interlocking directorships from the 70s and 80s, when high-ranking executives and CEOs sat on each others boards of directors, creating a collusion of interests.
Considering the dull nature of regulation and oversight by the SEC and other bodies charged with keeping markets "fair and free", the circular carousel of investments is likely to continue unchecked until an ultimate disaster strikes one and all.
Before teeing up Nvidia's earnings, the market was treated to a trio of retailers announcing thrid quarter earnings. Two of them, TJX Companies (TJX), owners of Marshall's and TJ Maxx stores, and home improvement giant, Lowe's (LOW) delivered reports that exceeded expectations. On the troubling side, Target (TGT), which has been under pressure for the better part of the past five years, delivered distressing numbers once again.
Roughly, Target showed:
- Net sales: -1.5% year over year
- Gross profit margin: 28.2% vs. 28.3% a year ago
- Diluted earnings per share: -3.9% year over year to $1.78, vs. estimate of $1.73
- Comparable sales: -2.7% year over year, vs. +0.3% estimate
While the overall numbers were not absolutely brutal, the company's forecast for the holiday season and beyond was Grinch and Scrooge-worthy. "Guests are choiceful, stretching budgets and prioritizing value. They're spending where it matters most, especially in food, essentials, and beauty," Target chief commercial officer Rick Gomez said.
Target shares are down three to four percent in pre-market trading. The stock hit a high of 261 in July, 2021 and will likely open trading on Wednesday at 85 to 86.
Elsewhere, gold and silver were bid up overnight, with gold topping out at $4,120 and silver above $52 per ounce. WTI crude oil dropped below $59/barrel just after 8:00 am ET.
As earnings reports dwindle, Nvidia is one of the last few that will have real market impact. Stocks will need another catalyst moving forward through the holiday season, which is predicted to be somewhat choppy. There's still lots of money sloshing around, though at the lower end of the economic ladder, rents, food, and higher prices due to tariffs are reasons for concern.
Stocks seem to have crested and a technical correction may be near at hand. A recession is almost certain in early 2026.
At the Close, Tuesday, November 18, 2025:
Dow: 46,091.74, -498.50 (-1.07%)
NASDAQ: 22,432.85, -275.23 (-1.21%)
S&P 500: 6,617.32, -55.09 (-0.83%)
NYSE Composite: 21,172.59, -40.82 (-0.19%)
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