(upd) With significant losses, the New York stock markets closed on Thursday (13/11), as investors were “scared” by the decision of Michael Burry, the “Big Short” who became known when he predicted the collapse of the housing market in 2008, to liquidate his hedge fund, Scion Asset Management.
The legendary investor is exiting the market, leaving behind a wave of questions and concern on Wall Street.
The news comes just a few days after his warnings about “bubbles” in key technology stocks such as Nvidia and Palantir.
The moves of M. Burry, the man who became synonymous with prophecy and unconventional trading, raise the question once again: Does he see something the rest are ignoring?
It is worth noting that, a few days earlier, SoftBank announced that it sold its entire stake in Nvidia, worth $5.83 billion.
As expected, investors’ concerns about an AI bubble are pushing technology stocks downward, with Nvidia, Palantir, and others recording losses.
Meanwhile, expectations that the Federal Reserve (Fed) will cut interest rates at the December meeting are decreasing, with the odds now below 50%. Specifically, the probability of a rate cut at the Fed meeting on 10 December is now 47.4%, down from 62.8% last week and 96% last month.
The negative sentiment was slightly eased by the end of the longest shutdown in U.S. history, after the House of Representatives approved a bill for the temporary funding of the federal government.
The measure, which will fund government operations until the end of January, was approved on Wednesday night (12/11/2025) by the House with 222 votes in favor and 209 against.
“The Democrats tried to blackmail our country,” said Donald Trump before signing the bill in the Oval Office of the White House, in order to reopen the government after 43 days.
It is recalled that the Democrats had blocked the passage of a funding bill until Sunday (9/11/2025), when a group of the party’s senators agreed to support the new proposal in the Senate, despite the fact that it did not include an extension of the tax credits of the Affordable Care Act (ACA).
On the board
The Dow Jones closed at 47,457.22 points (-1.65%), the benchmark S&P 500 at 6,737.49 points (-1.7%), and the tech-heavy Nasdaq at 22,870.35 points (-2.3%).
On the board, standouts include: Walt Disney -8%, Nvidia -4.4%, Tesla -7%, Intel -6.3%, Super Micro Computer.
At the same time, yields on U.S. government bonds are rising, with the 10-year and 30-year at 4.10% (+1% on yield) and 4.71% (+1% on yield) respectively.
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