By Lewis Krauskopf and Saqib Iqbal Ahmed
Publication Date: 2025-11-23 11:03:00
By Lewis Krauskopf and Saqib Iqbal Ahmed
NEW YORK (Reuters) – Stock market investors are bracing for a turbulent end to the year, sparked by uncertainty over near-term interest rate cuts from the Federal Reserve and growing concerns that artificial intelligence companies, which have driven the market to new records this year, are overvalued.
The market continued to slide last week, although stock indices recovered significantly on Friday. As of Friday’s close, the benchmark S&P 500 and the Nasdaq Composite were down 4% and 7%, respectively, from their record highs in late October.
After an unstoppable rally since April fueled by excitement around AI and expected interest rate cuts, market exuberance gave way to caution this week, with investors warning of a more unsettled holiday season as doubts grow over these two key themes.
“We are certainly approaching a volatile holiday season,” said Eric Kuby, chief investment officer at North Star Investment…
