Tech Rebounds at the Open as Investors Weigh Inflation Pressures and AI Turbulence

U.S. stocks opened higher on Monday, November 24, as a battered tech sector stabilized and investors parsed fresh signals on inflation, consumer strain, and the durability of the AI boom.

The Dow Jones Industrial Average rose about 89 points, or 0.19%, to roughly 46,335 in early trading. The S&P 500 gained 0.55% to around 6,639, while the Nasdaq Composite jumped 0.93% to 22,480, leading the morning’s advance. Small-caps were more muted, with the Russell 2000 inching up 0.08% to 235.68.

Commodities were mixed. Crude oil traded near $58.14, up slightly at the open, while gold hovered at $4,077, down about 0.06%. Equity volatility eased, with the VIX slipping more than 3% to 22.63. Bitcoin traded just under $86,000, down 0.83%.

Carol Roth Explains Why Everything Is So Expensive 👇

Tech Attempts a Comeback After Weeks of Selling

After several weeks of punishing declines in mega-cap and AI names, early trading showed investors tentatively returning to the sector. The pullback has been steep enough to rattle even long-time tech bulls — but some analysts argue the selling has gone too far.

Daniel Ives of Wedbush said the recent slump amounted to “some rough and brutal days for tech investors,” describing a “building white-knuckle moment for tech stocks” after a wave of risk-off moves hit leaders such as Tesla, Microsoft, Palantir, Oracle, and Nvidia.

The shock intensified when Nvidia reported “off the charts eye-popping growth numbers” only to sell off immediately afterward. According to Ives, that fueled renewed talk of an “AI Bubble” and amplified worries about China-related restrictions and governance questions swirling around the broader AI ecosystem.

Even so, Ives argues that the downturn is temporary. “We view this as a short lived mini panic moment for tech stocks as we believe tech stocks will have a rally into the rest of the year,” he said.

Ives reiterated his view that Big Tech is in the early innings of a massive capital-expenditure cycle tied to AI infrastructure, noting that cloud and AI spending could rise from roughly $380 billion this year to as much as $550–$600 billion in 2026. Nvidia, he emphasized, remains the industry’s anchor: “There is one company in the world that is the foundation for the AI Revolution and that is Nvidia.”

Demand-Driven Inflation Keeps Pressure on Rates

Investors also weighed fresh evidence showing that inflation continues to be driven primarily by consumer demand rather than lingering supply shocks. Analysis of recent inflation components shows roughly two-thirds of price growth stemming from demand-side pressures, a dynamic that complicates expectations for rapid rate cuts.

As long as demand-pull inflation keeps headline pricing above the Federal Reserve’s 2% target, policymakers may be forced to maintain restrictive policy longer than markets hope. That backdrop helps explain why volatility eased at the open even as traders continue to reassess the timing of future Fed moves.

Carol Roth Warns on the K-Shaped Economy and Policy Risks

The morning also brought renewed attention to commentary from author and former investment banker Carol Roth, who has become one of the clearest critics of America's uneven post-pandemic economy. Roth said she has “been talking about the K-shaped economy for years,” arguing that years of aggressive monetary stimulus made the divergence between asset owners and working households inevitable.

Her bluntest warning focused on financial stability: “We quite literally cannot afford for assets to come crashing down,” she said, arguing that a market crash “isn’t cleansing—it’s catastrophic.”

Roth pushed back hard against claims that wages have outpaced inflation. Responding to prominent economists who say consumers are better off, she said: “Paul Krugman gets most of everything wrong.” She argued that official inflation readings amount to “engineered math,” adding, “There’s nothing that wages are keeping pace with.” Suggesting otherwise, she said, is “trying to gaslight people.”

Roth said she is optimistic about AI’s long-term impact. “We’re at the ground floor here and there’s so much more to happen,” but warned that America’s permitting, regulatory, and infrastructure constraints could undermine competitiveness. “There are massive data centers… that have not been built because the electrical grid can’t support it,” she said.

On tariffs, Roth was equally unsparing: “80% of the tariffs are being paid by consumers,” she noted, criticizing support for tariffs that are justified only by political branding.

Despite the structural challenges, Roth described herself as “a realist, but also an optimist,” urging Americans to stay engaged and question policies that erode economic resilience.

Looking Ahead

With the Thanksgiving week underway, markets enter a shortened trading schedule balancing easing volatility, sticky demand-driven inflation, and a tech sector still finding its footing. Investors will remain focused on whether the AI-capex narrative continues to outweigh concerns about valuations, geopolitical risk, and the durability of consumer demand.