Global markets fall ahead of Nvidia earnings amid AI valuation concerns

Published: 19 November 2025, 2:19:05

Stock markets around the world slid on Tuesday as investors grew wary of high valuations in the tech sector ahead of Nvidia’s quarterly earnings, with Bitcoin briefly dipping below $90,000 for the first time in seven months before recovering to about $93,000.

Major Wall Street indexes closed lower following declines in European and Asian markets. Nvidia shares themselves fell 2.8 percent. “The tech-focused sell-off seen in the US has evidently resulted in global contagion,” said Joshua Mahony, chief market analyst at Scope Markets.

Alphabet CEO Sundar Pichai warned in a BBC interview that all companies could be impacted if the AI investment bubble bursts. Market analyst Fawad Razaqzada noted that commodities like gold and copper, typically considered safe, were also pressured downward.

US online services firm Cloudflare saw shares drop 2.8 percent after reporting a “latent bug” that disrupted traffic to major websites, including social media platform X and AI chatbot ChatGPT.

European markets followed suit, with London, Paris, and Frankfurt all down more than one percent. After a record rally in 2025, investors are questioning whether AI investments will generate substantial returns. Nvidia’s earnings on Wednesday are expected to provide insights into the health of the sector.

“Better news from Nvidia will likely spur some excitement in other AI names that have also seen a pullback,” said Art Hogan of B. Riley Wealth Management.

Meanwhile, speculation continues over US Federal Reserve interest rate decisions. Traders will analyze the delayed September jobs report on Thursday for clues on whether a rate cut is still likely. Retail earnings from Target, Walmart, and Home Depot this week will also offer insight into consumer sentiment.

In other developments, the US Treasury reported plunging demand for Russian oil following recent sanctions. In Japan, markets reacted nervously ahead of Prime Minister Sanae Takaichi’s stimulus announcement, with 20-year government bond yields hitting their highest since 1999 and the yen weakening to around 155.48 per dollar.
Key market figures (around 2105 GMT, Tuesday close)

New York: Dow: -1.1% at 46,091.74 | S&P 500: -0.8% at 6,617.32 | Nasdaq: -1.2% at 22,432.85

London FTSE 100: -1.3% at 9,552.30

Paris CAC 40: -1.9% at 7,967.93

Frankfurt DAX: -1.7% at 23,180.53

Tokyo Nikkei 225: -3.2% at 48,702.98

Hong Kong Hang Seng: -1.7% at 25,930.03

Shanghai Composite: -0.8% at 3,939.81

Currency movements:

Dollar/yen: 155.53 (up from 155.23)

Euro/dollar: $1.1580 (down from $1.1589)

Pound/dollar: $1.3146 (down from $1.3156)

Oil prices: