Name: Tech sell-off shakes global markets
Uploaded: 2025-11-05T14:20:44.589Z
Duration: 3 min 28 s
Description: A global tech sell-off spills into European stocks with chipmakers sinking into the red as fears grow over AI valuations. Squawk Box Europe’s Steve Sedgwick, Karen Tso and Julianna Tatelbaum discuss the market action.

A global tech sell-off spills into European stocks with chipmakers sinking into the red as fears grow over AI valuations. Squawk Box Europe’s Steve Sedgwick, Karen Tso and Julianna Tatelbaum discuss the market action.

Brussels

Global markets are reacting to a significant sell-off in U.S. technology stocks, with the Nasdaq, S&P 500, and Dow Industrials all closing lower. The tech sector led the losses, with notable declines in Palantir, Nvidia, AMD, and Tesla, though some stabilization was observed in early European trading.

Financial leaders from Goldman Sachs and Morgan Stanley indicated that a 10-20% market correction is likely in the coming 12-24 months, describing such drawdowns as normal and potentially healthy for markets. Palantir CEO Alex Karp criticized short sellers, including Michael Burry, for betting against tech stocks, while commentators defended the right to question high valuations without being accused of market manipulation.

Tech sell-off shakes global markets

Well, this morning here in Europe, we are all digesting the major sell off that we saw on Wall Street yesterday. Here's where the three major indices ended up. We closed on the lows, selling, accelerating into the close. The Nasdaq ending at two percent lower, the S&P 500 more than one percent lower, and the Dow Industrials Index off about 250 points. It was the tech sector, quite obviously, which drove the losses. Palantir shares off almost eight percent in yesterday's trade, Nvidia shares off almost four percent, AMD also trading lower, and Tesla off about five percent. Now, interestingly, we are already seeing some signs of stabilization here in Europe. Here's a look at some of the U.S. tech names. A little bit more selling for Palantir off two percent in extended trade, Tesla stabilizing, though, this morning. Nvidia shares seem to be stabilizing as well. So it will be interesting to see how U.S. markets fare today, whether we see investors move in to buy the dip or whether this is the beginning of a more sustained sell off. Now, the chief executives of Goldman Sachs and Morgan Stanley have weighed in on the chances of a market correction following a strong rally this year. It is likely there'll be, you know, a 10 to 20 percent drawdown in equity markets sometime in the next 12 to 24 months. And I'd say there are very few people in this room that don't think that that's a meaningful possibility. It doesn't mean that the general direction of capital flows, investment, portfolio allocations changing. It just means things run and then they pull back so people can reassess. We should also welcome the possibility that there would be drawdowns, 10 to 15 percent drawdowns that are not driven by some sort of macro cliff effect. Just the reality that, for example, metals are really run. I think that's a healthy development. And what we'll be looking to see in 26 is whether the market, in fact, broadens and we see that kind of dispersion. Palantir CEO Alex Karp hit out at short sellers in an appearance on CNBC, now including famed big short investor Michael Burry after he revealed bets against NVIDIA and Palantir in a regulatory filing. What is going on here is market manipulation. We delivered the best results everyone anyone's ever seen. It's not even clear he's not doing this to get out of his position. I mean, these people, they claim to be ethical, but, you know, like they're they're actually shorting one of the great businesses of the world. And I'm not against shorting as a matter of theory, but I'm just saying pick something that is not doing a noble task. And, you know, it's us against them. It's not it's not it's not us against them. People can love good companies, but not like the valuation. I spent my entire career, a quarter of a century here loving companies with rubbish valuations, but not loving the valuation. It's like it's I'm sorry. That is just the market manipulation. Does that mean every time someone who's got a long position comes on CNBC and spouts it off on both sides of Atlantic? Does that mean that person is market manipulating? I have nothing but respect for the growth story at Palantir, for the amazing proposition that they are giving to the AI world via their software. Nothing but respect for Mr. Karp and his team. But you can't accuse people who think that your valuation at 250 times forward is manipulating if they don't like the valuation. Well, what's the what's the revenue of this company expected to be? I can tell you what it's big to be. Four point four billion dollars. And yet it's trading at three times the multiple of Nvidia.

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