{"id":34054,"date":"2025-11-05T16:03:16","date_gmt":"2025-11-05T08:03:16","guid":{"rendered":"https:\/\/www.vtmarkets.com\/?p=34054"},"modified":"2025-11-05T16:03:16","modified_gmt":"2025-11-05T08:03:16","slug":"sp-500-pulls-back-to-valuation-jitters","status":"publish","type":"post","link":"https:\/\/www.vtmarkets.com\/en-ca\/analysis\/sp-500-pulls-back-to-valuation-jitters\/","title":{"rendered":"S&amp;P 500 Pulls Back to Valuation Jitters"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"559\" src=\"https:\/\/www.vtmarkets.com\/en-ca\/wp-content\/uploads\/sites\/13\/2026\/03\/indices7-1024x559.png\" alt=\"\" class=\"wp-image-16991\" \/><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\">Key Points<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>S&amp;P 500<\/strong> slipped <strong>0.24% to 6,770.73<\/strong>, adding to Tuesday\u2019s <strong>1.2% drop<\/strong>.<\/li>\n\n\n\n<li><strong>AI-linked mega caps<\/strong> led declines as traders took profits after months of parabolic gains.<\/li>\n\n\n\n<li>Wall Street CEOs including <strong>Jamie Dimon<\/strong> and <strong>James Gorman<\/strong> warned valuations may be \u201cunsustainable.\u201d<\/li>\n\n\n\n<li><strong>Volatility<\/strong> rose to the highest since April as traders rotated into defensives.<\/li>\n\n\n\n<li><strong>10-year Treasury yield<\/strong> eased to <strong>4.08%<\/strong>, while <strong>gold<\/strong> climbed back above <strong>$3,970<\/strong>.<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity is-style-dots\" \/>\n\n\n\n<p>The <strong>S&amp;P 500\u2019s rally paused abruptly<\/strong> this week as traders reassessed sky-high valuations amid growing caution from major Wall Street executives. The benchmark fell <strong>1.2% on Tuesday<\/strong> and traded another <strong>0.24% lower at 6,770.73<\/strong> in the Asian session, following sharp losses across global equities.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">Dow, S&amp;P 500, Nasdaq futures mixed after tech sell-off, AMD slides after earnings<a href=\"https:\/\/t.co\/iDNIy6omsq\">https:\/\/t.co\/iDNIy6omsq<\/a><\/p>&mdash; Yahoo Finance (@YahooFinance) <a href=\"https:\/\/twitter.com\/YahooFinance\/status\/1985863327244042260?ref_src=twsrc%5Etfw\">November 5, 2025<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>Market sentiment shifted as traders questioned whether this year\u2019s AI-fuelled surge could continue without fresh catalysts. Analysts described the pullback as an overdue reset after months of relentless buying pressure.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">The biggest slump in a month for US stocks is leading investors to query whether long-running concerns over lofty tech valuations, narrow market breadth and economic uncertainty will finally bring an end to the bull run that started in April. <a href=\"https:\/\/t.co\/8JU3aBwfKW\">https:\/\/t.co\/8JU3aBwfKW<\/a><\/p>&mdash; Bloomberg (@business) <a href=\"https:\/\/twitter.com\/business\/status\/1985890891194569042?ref_src=twsrc%5Etfw\">November 5, 2025<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>Mega-cap names that have powered the index higher\u2014<strong>Nvidia, Microsoft, Amazon, and Alphabet<\/strong>\u2014faced renewed selling pressure as volatility surged.<\/p>\n\n\n\n<p>The <strong>CBOE VIX<\/strong> spiked to its highest level since April, signalling elevated uncertainty ahead of November\u2019s key earnings and inflation data.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Broader Context<\/h2>\n\n\n\n<p>The risk-off move rippled through global markets, with Japan\u2019s <strong>Nikkei 225<\/strong> tumbling nearly 7% from its record high before paring losses, and the <strong>KOSPI<\/strong> down more than 6% at one point.<\/p>\n\n\n\n<p>Bond markets saw modest inflows as yields eased, with the <strong><a href=\"https:\/\/t.co\/0ComUOd9kp\" target=\"_blank\" rel=\"noopener nofollow\" title=\"\">10-year Treasur<\/a><a href=\"https:\/\/t.co\/0ComUOd9kp\" target=\"_blank\" rel=\"noopener\" title=\"\">y yield slipping to 4.08%<\/a><\/strong> from <strong>4.09%<\/strong>, while the <strong>Dollar Index (USDX)<\/strong> hovered near a five-month high at <strong>100.25<\/strong>. The rotation into safe havens lifted <strong>gold 1% to $3,971.60<\/strong>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Technical Analysis<\/h2>\n\n\n\n<p>The S&amp;P 500 slid to around <strong>6,770<\/strong>, down about 0.24% on thin 15-minute charts \u2014 marking a pause after recent highs. The short-term moving averages (5,10,30) are beginning to flatten, hinting at slowing momentum.<\/p>\n\n\n\n<p>Meanwhile, the MACD histogram has started to contract, suggesting that momentum is fading out of the recent up-move.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" src=\"https:\/\/www.vtmarkets.com\/en-ca\/wp-content\/uploads\/sites\/13\/2026\/03\/WhatsApp-Image-2025-11-05-at-151648-1024x449.jpg\" alt=\"\" class=\"wp-image-34058\" \/><\/figure>\n\n\n\n<p>This pull-back aligns with recent news: leaders at Morgan Stanley and Goldman Sachs warned of potential 10\u201315% drawdowns in the equity market due to stretched valuations.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">Wall Street heavyweights flag risk of pullback in equity markets <a href=\"https:\/\/t.co\/i4UxSDkGaV\">https:\/\/t.co\/i4UxSDkGaV<\/a> <a href=\"https:\/\/t.co\/i4UxSDkGaV\">https:\/\/t.co\/i4UxSDkGaV<\/a><\/p>&mdash; Reuters (@Reuters) <a href=\"https:\/\/twitter.com\/Reuters\/status\/1985860891829485648?ref_src=twsrc%5Etfw\">November 5, 2025<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>At the same time, the market\u2019s earlier impetus \u2014 strong earnings and AI-led risk appetite \u2014 is now being challenged by questions over whether gains can be sustained.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Outlook<\/h2>\n\n\n\n<p>The index remains <strong>structurally bullish but tactically overextended<\/strong>, with traders eyeing consolidation before year-end. While the Fed\u2019s December policy meeting and upcoming earnings from <strong>Nvidia<\/strong> and <strong>Microsoft<\/strong> could steer direction, near-term positioning remains defensive.<\/p>\n\n\n\n<p>Volatility spikes are likely to persist as markets rebalance from AI-driven exuberance toward valuation-conscious trading.<\/p>\n\n\n\n<p>For now, <strong>the S&amp;P 500 looks set to trade range-bound between 6,650 and 6,875<\/strong>, with sentiment hinging on whether traders treat this as a healthy correction\u2014or the start of something deeper.<\/p>\n\n\n\n<p><strong><a href=\"https:\/\/www.vtmarkets.com\/trade-now\/\" target=\"_blank\" rel=\"noopener\" title=\"\">Create your live VT Markets account<\/a> and <a href=\"https:\/\/myaccount.vtmarkets.com\/login?_gl=1*5vyjdn*_gcl_au*Njc1MzM0NjY0LjE3NTEzNTM4MTc.*_ga*MjA5ODA0NDIzNC4xNzI3OTE1ODQ1*_ga_J26NL1ZVX7*czE3NTE4NzkxMDYkbzMwOCRnMSR0MTc1MTg3OTExOCRqNDgkbDAkaDA.*_ga_6XQ8153GYW*czE3NTE4NzkxMDgkbzU3JGcxJHQxNzUxODc5MTE4JGo1MCRsMCRoMA..*_ga_BG6LYEHPX1*czE3NTE4NzkxMDgkbzUkZzEkdDE3NTE4NzkxMTgkajUwJGwwJGgw*_ga_J8BRGZSREX*czE3NTE4NzkxMDgkbzUkZzEkdDE3NTE4NzkxMjIkajQ2JGwwJGgw*_ga_7CG6454YR5*czE3NTE4NzkxMDgkbzUkZzEkdDE3NTE4NzkxMjIkajQ2JGwwJGgw*_ga_69Z54R4H9N*czE3NTE4NzkxMDgkbzUkZzEkdDE3NTE4NzkxMjIkajQ2JGwwJGgw*_ga_CY2VCKFC3C*czE3NTE4NzkxMDgkbzUkZzEkdDE3NTE4NzkxMjIkajQ2JGwwJGgw*_ga_TXZ07R2C21*czE3NTE4NzkxMDgkbzUkZzEkdDE3NTE4NzkxMjUkajQzJGwwJGgw*_ga_17TMGY9BBE*czE3NTE4NzkxMDgkbzUkZzEkdDE3NTE4NzkxMjUkajQzJGwwJGgw*_ga_MWDVVSEVL5*czE3NTE4NzkxMDgkbzUkZzEkdDE3NTE4NzkxMjUkajQzJGwwJGgw*_ga_2QCC3S2748*czE3NTE4NzkxMDgkbzUkZzEkdDE3NTE4NzkxMjUkajQzJGwwJGgw*_ga_E7D2PCX624*czE3NTE4NzkxMjYkbzUkZzAkdDE3NTE4NzkxMjYkajYwJGwwJGgw*_ga_XJ4037XKK6*czE3NTE4NzkxMjYkbzUkZzAkdDE3NTE4NzkxMjYkajYwJGwwJGgw*_ga_EJCVQDC7VT*czE3NTE4NzkxMDgkbzUkZzEkdDE3NTE4NzkxMjYkajQyJGwwJGgw\" target=\"_blank\" rel=\"noopener\" title=\"\">start trading<\/a> now.<\/strong><\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The S&amp;P 500 extended losses on Wednesday as traders locked in profits from record highs, unnerved by mounting warnings that equity valuations have run ahead of fundamentals. &#8211; vtmarkets.com<\/p>\n","protected":false},"author":64,"featured_media":16991,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[31],"tags":[11,69],"class_list":["post-34054","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis","tag-indices","tag-sp500"],"acf":{"acf_article_selection_author":""},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/34054","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/users\/64"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/comments?post=34054"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/34054\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media\/16991"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media?parent=34054"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/categories?post=34054"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/tags?post=34054"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}