The US stock market experienced a significant sell-off, with sellers outnumbering buyers five to one on Thursday. Despite this, major institutional risk management prevented a systemic crisis, as capital shifted toward gold, bonds, and cash-flow-positive companies rather than exiting the market entirely.
Equity valuations have normalized, with the Nasdaq 100 trading at approximately 20 times annual earnings, consistent with its 20-year median. Technology sector valuations have compressed from 30 to 20 times earnings, while Nvidia is trading at roughly 10 times forward earnings for the next 24 months, marking its lowest level since 2013.
Gold and silver have reclaimed their role as defensive assets. Gold rose 4.6% over the week to close at $4087, while silver reached $51.76. Goldman Sachs has adjusted its gold price forecasts, projecting $4150 by the end of 2026 and $4800 by the end of 2027, amid continued buying by the People's Bank of China.
The cryptocurrency market faces a liquidity shortage, with stablecoin capitalization dropping to $297.6 billion from a May peak of $315.5 billion. Bitcoin ended the week at $74 800, down 4.4%, while Ethereum fell 6.5%. Crypto ETFs recorded a total outflow of $1.15 billion for the week, with $1.28 billion exiting Bitcoin ETFs alone.
Market participants are monitoring key upcoming dates, including the CPI inflation report on November 10 and Nvidia's earnings report on November 17. Analysts suggest that current pullbacks in equities and digital assets may present buying opportunities, as the market enters a historically favorable seasonal cycle.
