It was a tough day for investors as stocks, gold, and crypto all sold off. The Daily Breakdown takes a closer look at the pullback.
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What’s Happening?
Markets struggled yesterday, with the selling pressure hitting a number of Wall Street’s favorite assets for 2025. The Nasdaq 100 fell 2.1% — its second-worst decline since April 21st — Bitcoin fell almost 5% and momentarily broke below the key $100K level, and gold fell 1.8%.
The trio of stocks, crypto, and precious metals have been a pretty strong performer so far this year. For diversified portfolios who have been allocated in these baskets, a one-day dip likely doesn’t rattle confidence too much. For those who piled in late though, there may be some concerns with Tuesday’s action.
Earnings Digestion
Earnings season is clocking in strong, with more than 80% of S&P 500 firms beating expectations. But markets have been on a strong run lately and some profit-taking isn’t too surprising.
For example, Palantir and Advanced Micro Devices have both reported this week and so far, both earnings reactions have been disappointing. But Palantir was up ~400% over the past year coming into its report, while AMD was up more than 50% in about a month. Those are huge rallies to digest — even if the earnings are strong.
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The Setup — ONON
Known for its On Cloud shoes, shares of On Holding have struggled lately. Shares have fallen in six straight days, six straight weeks, and are currently down for a sixth straight month — although it’s early in November still. However, it’s coming into a key technical area on the charts:
Since its breakout in May 2024, the $35 to $36 area has been key support. Bulls are hoping this area will again stop the stock’s slide, allowing it to stay rangebound between ~$35 and ~$60. More than anything though, they just want to see a bounce, as momentum has been decidedly bearish so far in the second half of 2025.
Options
As of November 4th, the options with the highest open interest for ONON stock — meaning the contracts with the largest open positions in the options market — were the November $32.50 puts, followed by the January 2026 $50 calls.
For options traders, calls or bull call spreads could be one way to speculate on support holding on a pullback. In this scenario, options buyers limit their risk to the price paid for the calls or call spreads, while trying to capitalize on a bounce in the stock. Conversely, investors who expect support to fail could speculate with puts or put spreads.
For those looking to learn more about options, consider visiting the eToro Academy.
What Wall Street’s Watching
AMD
Earnings of $1.20 per share beat analysts’ expectations of $1.17 per share, while revenue of $9.25 billion grew 36% year over year and beat estimates of $8.7 billion. However, after a ~50% rally over the past month, shares are dipping despite management’s better-than-expected Q4 revenue outlook. Dig into the fundamentals for AMD.
Super Micro Computer didn’t wow Wall Street with its quarterly results. That’s as revenue of ~$5 billion came in well below estimates of $6 billion and earnings of 35 cents a share missed expectations for 40 cents a share. Management noted that some changes meant pushing current quarter revenue to next quarter.
Ethereum couldn’t hold the $3,900 to $4,000 level and has quickly come under selling pressure as it touched a low near $3,055 on Tuesday. Bulls desperately want to see this name — the No. 2 cryptocurrency by market cap — stay above $3,000 and soon regain the 200-day moving average. Check out the chart for ETH.
Disclaimer:
Please note that due to market volatility, some of the prices may have already been reached and scenarios played out.