The U.S. stock market has been volatile recently, and even famed investor Michael Burry is weighing in. Reuters reports that Burry’s hedge fund, Scion Asset Management, was deregistered this fall – meaning he’s effectively stepping away from outside clients. He cryptically tweeted he’s “on to much better things” while continuing to warn of a tech-stock bubble (posting that “only winning move is not to play”). In fact, Scion’s latest SEC filings show Burry has loaded up on bearish bets against AI stocks: roughly $912 million in Palantir put options and $187 million in Nvidia puts (a put option is a bet that a stock’s price will fall). His portfolio also includes smaller bullish positions (calls) on Pfizer and Halliburton. In short, Burry – famous for “The Big Short” trade against the housing bubble – is now betting on a shakeout in high-flying tech.
Why Are Stocks Falling Today? Market News & Trends
On any given day (“stock market today”) major indexes can swing. Recently, Wall Street saw a pullback: on Nov 13 the Dow Jones Industrial Average slipped about 0.2% while the S&P 500 fell 0.5% and the Nasdaq dropped 0.9%. Key tech stocks led the decline (Nvidia –2.6%, Alphabet –2.3% were among the biggest drags). Several factors explain the downward pressure:
- Tech/AI selloff: Surging valuations in AI and tech have made investors skittish. Many point to lofty prices for the “Magnificent Seven” (big tech names) and profit-taking after recent rallies.
- Economic data gap: A 43-day U.S. government shutdown stalled key data releases. Traders are cautious without fresh GDP, jobs and inflation reports.
- Fed uncertainty: With inflation still above target, some Fed officials (e.g. Atlanta’s Bostic) urge caution before cutting rates. This uncertainty adds to market jitters.
- Profit-taking: After many record highs, some investors view the weakness as a temporary “speed bump,” not a full crash. In fact, on Nov 12 the Dow closed above 48,000 for the first time (a new record), even as the Nasdaq lagged. Many strategists say the broad bull market has strong underpinnings (Fed easing, solid economy) and that a short-term dip is normal.
In sum, “why is the market down today?” can be answered by a mix of profit-taking in pricey sectors, uncertainty over Fed policy, and missing data. Investors worried about a crash may find comfort in analysts’ view that this is a mild correction, not the start of a bear market. Still, sentiment is cautious: volatility has returned after a long calm.
Michael Burry’s Scion Portfolio 2025: Betting Against Tech
How is Michael Burry investing now? As of Q3 2025 filings, Scion Asset Management’s portfolio is highly concentrated in a few big bets. Notably, put options on Palantir and Nvidia dominate. Palantir’s puts alone represent about two-thirds of the fund’s holdings, and Nvidia’s about 13%. This means Burry stands to profit if those stocks fall. In plain terms: he purchased about 50,000 Palantir put contracts (enabling sales at $50/share in 2027) and 10,000 Nvidia puts, totaling roughly $1.1 billion in notional value. He has fewer shares in other names – for example, small call-option stakes on Pfizer and Halliburton – but nothing like the massive tech bets.
This shift is notable given Burry’s history. He made his name shorting subprime mortgages (chronicled in The Big Short) and even led a campaign against Chinese equities in 2022-23. Now he sees potential bubbles in AI and tech. His public posts underscore this: for instance, he put up an image of himself (from The Big Short) warning about bubbles and advised that the “only winning move is not to play”. Palantir’s CEO, Alex Karp, responded on social media, but most analysts simply view Burry’s stance as a signal that volatility may continue in technology stocks.
Federal Reserve, Inflation, and the U.S. Economy in 2025
A big driver of markets is U.S. monetary and economic policy. Recent Reuters analysis shows that most economists expect one more Fed rate cut this year (from 3.75% to 3.50-3.75% in December) to support a weakening jobs market. Indeed, the Fed has already delivered two quarter-point cuts. However, Fed officials are split. Atlanta Fed President Bostic explicitly said inflation is still the “greater risk” and favored pausing further cuts until inflation falls closer to 2%. This caution is grounded in data: the Fed’s preferred inflation measure (PCE) has remained above 2% for over four years, the longest stretch since 1995.
On the real economy, signs are mixed. Consumer spending is still growing (about 2.7% annualized as of August) but is slowing. Rising healthcare premiums and potential cuts to food assistance (amid the shutdown) are straining lower-income households. Recent reports indicate job cuts are accelerating – one firm noted a spike in layoff announcements to multi-year highs. Unemployment is very low now, but many economists (and even Fed Chair Powell) warn it will tick up as hiring cools. The upshot: policymakers face a trade-off between supporting growth and reining in inflation. Markets are watching the Fed’s moves closely – any sign of more easing could prop up stocks, while unexpected hawkishness might spook them.
IRS 401(k) Updates: 2026 Contribution Limits (and More)
Retirement savers got a boost: the IRS announced higher savings limits for 2026. The key changes include:
- 401(k) contribution limit: $24,500 in 2026 (up from $23,500 in 2025).
- Catch-up (age 50+): $8,000 (up from $7,500), so savers 50 and over can put away up to $32,500 in 2026.
- IRA limit: $7,500 (up from $7,000); IRA catch-up: $1,100 (up from $1,000).
- SIMPLE IRA limit: $17,000 (up from $16,500); SIMPLE catch-up: $4,000 (up from $3,500).
These inflation adjustments (per IRS rules and the SECURE 2.0 Act) mean workers can save more for retirement. For example, an under-50 employee can now defer $24,500 into a 401(k) in 2026. Anyone 50 or older should target the full $32,500 if possible. Plan for it: review your 401(k) elections now so you’re maxing out next year’s higher limit.
Other financial news: The IRS is also issuing one-time $1,400 stimulus payments to about 1 million taxpayers (those who missed the 2021 Recovery Rebate Credit), by direct deposit or check. This payment is not new legislation but a catch-up credit from 2021 filings. It’s a reminder to watch out for IRS communications (and scammers) as these funds arrive by direct deposit.
Retirement Savings & Investment Strategies for 2025-26
Given these developments, how should investors and savers act? First, keep a long-term perspective. While markets dip now, analysts note current weakness is generally seen as a “pause” after a long rally. The U.S. economy – despite headwinds – still has tailwinds (e.g. corporate spending on AI, underlying consumer demand). For portfolios, diversification is key:
- Rebalance away from hype: Some investors are heeding the dot-com era playbook by trimming very expensive tech stocks (the current AI leaders) and rotating into sectors with room to grow. For example, funds are flowing into areas like software, robotics, Asian tech, and other reasonably valued growth stocks.
- Include fixed income: With interest rates still elevated, bonds can provide stability. Short-term bonds may be particularly attractive now. (One strategist recently argued that with Fed cuts ahead, investors should avoid locking into long-term Treasuries; short-duration funds avoid big price swings if rates fall.)
- Defensive plays: Consider adding more cash, high-dividend or consumer staples stocks, and precious metals. These often outperform when markets slide. The past shows a swift rotation to safe havens can cushion downturns.
- Maximize savings: Use the new 401(k)/IRA limits. Treat any market drop as a buying opportunity for quality assets. Dollar-cost averaging (steady investing over time) remains a sound strategy.
In short, the “best investments during a market downturn” are those that fit your goals and risk tolerance, with an emphasis on quality and balance. As one veteran strategist puts it, no one sees preconditions for a full-blown crash now. But even if markets recover, being prepared is wise.
IRS Direct Deposit and Other Financial News
Aside from 401(k) changes, keep an eye on IRS updates. As noted, eligible taxpayers are getting stimulus payments directly deposited. Remember, the IRS will never initiate contact by email or social media – watch out for scams claiming extra payments. Also, tax season is coming: the IRS will start accepting 2025 returns in early 2026, and many refunds can be direct-deposited by mid-March if you qualify (especially with EITC/ACTC). Stay alert for official IRS announcements on deposit dates to avoid fraud.
Conclusion
In this turbulent market environment, staying informed is crucial. Michael Burry’s bearish stance highlights valid concerns about bubbles in tech, but many experts still see any recent selloff as temporary. Key drivers today include Fed policy and inflation data, so watch Fed communications closely. On the upside, Americans can take concrete action by maxing out retirement contributions under the new 2026 limits. In practice, that means adjusting your paycheck deferrals now to meet the $24,500 (plus catch-up) cap next year.
Ultimately, the best strategy is a balanced one: use market dips to invest at lower prices, diversify holdings (bonds, foreign markets, etc.), and bolster long-term retirement savings. As news outlets report these shifts, readers should review their portfolios or consult a financial advisor to align with these trends. Keeping up with reliable sources – rather than rumors – will help you navigate “market today” headlines wisely. Stay the course, take advantage of higher contribution limits, and maintain a disciplined plan for 2025–2026.
Cover photo: Image credit: Traders Union image found on Traders Union – licensed under CC BY-ND 4.0.