Wall Street CEO Remarks, Big Short Puts and PLTR Earnings Spark Valuations Concerns and Risk-Off Sentiment: Nov. 4, 2025

Valuation angst is hampering animal spirits in markets following several Wall Street CEOs communicating at an annual Hong Kong gathering that stocks are quite pricey. But it wasn’t just comments at the investment summit, which is run by the territory’s monetary authority, that is provoking jitters. Indeed, poorly received Palantir earnings are additionally weighing on sentiment, despite the firm beating on the top and bottom lines and bumping its outlook higher. Furthermore, there’s a general sense amongst equity bears that a pullback is long overdue, even as the calendar offers a favorable seasonal backdrop considering that November and December tend to deliver some of the strongest returns. Speculative fervor is declining in the short term, with bitcoin, tech and semiconductors facing heavy losses as traders scoop up volatility protection instruments to defend portfolios while also buying shares in the real estate, banking, consumer staples and health care sectors; all the other seven major segments are retreating alongside the four principal domestic benchmarks. The overall commodity complex is also down; however, Treasuries and the greenback are rallying, driven by safe-haven demand amidst risk-off attitudes. The yield curve is descending relatively evenly throughout maturities while the Dollar Index has broken above the critical 100 level with force. Forecast contracts are getting heavily bid and have marked fresh year-to-date records in trading volumes for the second consecutive session. Today’s total transactions north of 8.91 million is more than double yesterday’s 4.096 million and there are still plenty of hours to go.

The Answer to Pricey Valuations

Today’s equity trough occurred five minutes after the bell as traders aggressively bought the dip and benchmarks pared earlier losses in a significant way, with the Dow and S&P 500 even nearing their respective flatlines. Valuations are an important aspect of equity pricing, but they are an awful timing tool, and there are plenty of reasons why folks shouldn’t expect an imminent pullback. First on the list is the calendar effect, as year-end performance chasing amidst heavy sideline cash volumes coincides with what’s historically a terrific time for share prices. Second, the political and central banking environments are supportive as financial market gains are top of mind for the White House while economic stability is paramount to the Federal Reserve. Indeed, the Trump put is of a higher delta, meaning that it’s closer to the underlying than the Fed’s, as the commander in chief is likely to motivate Wall Street and quell volatility faster than the monetary policy authority. Third, the healthy cycle is due to reaccelerate and 2025’s advances have bolstered corporate earnings thus far. Meanwhile, the tailwinds of lighter taxation, milder regulations, subdued energy costs, pro-business measures on Capitol Hill and a reopened government stand to benefit markets greatly in 2026.

International Roundup

Australia Central Bank Warns of More Inflation

The Reserve Bank of Australia (RBA) decided to maintain its key interest rate of 3.6% and warned that shelter costs could climb in 2026. Policymakers voted unanimously to hold the current benchmark and didn’t consider making a reduction. Indeed, RBA Governor Michele Bullock opined that any additional cuts could potentially prevent price pressures from slowing. Bullock added that the most recent easing, which occurred in August, could be the last with the organization’s preferred inflation gauge, the core CPI, unexpectedly climbing to 3% in September, which is the top of policymakers’ target range. The RBA also said it no longer expects inflation to fall to 2.7% by 2027 and that the job market remains tight with businesses complaining about a worker shortage. 

South Korea Inflation Exceeds Expectations

The South Korea Consumer Price Index was up 0.3% month over month (m/m) in October, surpassing the economist consensus for no change but easing from the 0.5% gain in September. The year-over-year result moved 2.4% in the same direction, exceeding the economist forecast for a repeat of September’s 2.1% print. When excluding the volatile food and energy categories, the index was up 0.4% m/m and 2.2% y/y.

Relative to September, the recreation and culture category led price gains within the headline gauge, climbing 1.3%. Other categories that became more expensive and the extent of their changes were as follows:

• Transport, 1%
• Clothing and footwear, 0.7%
• Restaurants and hotels, 0.4%
• Communication, 0.3%
• Housing, water, electricity, gas and other fuels, 0.2%
• Health, 0.1%

The alcoholic beverages and tobacco group and the food and non-alcoholic beverage category were unchanged while furnishings, household equipment and routine maintenance sank 0.6%. Education slipped 0.1%.