US Stock Market Overview: Opportunities and Traps on November 1, 2025

On November 1, 2025, the U.S. stock market exhibited typical "high-risk bull market" characteristics amid global trade tensions and Federal Reserve policy expectations. Although the S&P 500 has risen by approximately 11.4% year-to-date, and the Dow Jones Industrial Average briefly surpassed the 47,000-point mark in late October, recent volatility has intensified significantly. At yesterday's (October 31) close, the S&P 500 fell 0.99% to 6,822.34, the Dow dipped 0.23% to 47,522.12, and the Nasdaq plunged 1.57% to 23,581.14, primarily dragged down by tech giants' earnings reports. This round of correction stemmed from Fed Chair Powell's hawkish remarks and massive AI spending plans announced by giants like Meta and Microsoft, sparking investor concerns over high valuation bubbles—the S&P 500's forward P/E ratio has reached 22.8x, far above its 10-year average of 18.6x. On the macro front, September CPI data showed the annual inflation rate slowed to 3.0%, slightly below expectations, paving the way for a Fed rate cut in December (probability: 72.8%). However, the U.S. government shutdown has lasted nearly a month, economic data releases have been disrupted, and the Trump administration's threat of 100% tariffs on China starting November 1 (despite a preliminary trade truce with China) has left market sentiment volatile. The AI boom drove a $17 trillion market cap surge earlier this year, but now the "Magnificent Seven" (top seven tech stocks) account for most of the gains, with only 47% of S&P 500 components above their 50-day moving average, indicating narrow market breadth. Looking ahead this week, Apple and Amazon will report earnings after the close on November 1, potentially amplifying volatility; Nvidia's turn comes on November 19, which will be a litmus test for the AI narrative. In this environment, investors should tread carefully. Below, based on the latest analyst consensus and market dynamics, we summarize a few promising stocks worth buying and risky stocks to avoid. Remember, the market is unpredictable—these suggestions are for reference only, and personal risk tolerance should be considered. Stocks to Buy: Capturing AI and Growth Dividends Nvidia (NVDA): As the AI chip leader, Nvidia's earnings continue to exceed expectations, with Q2 FY2026 revenue reaching $46.7 billion, up 56% YoY, with data center contributing $41.1 billion. Despite the stock doubling, its forward P/E is just 33x, well below its 57% annualized EPS growth forecast. The trade truce has eased supply chain concerns—buy on dips with a target price of $150.

Broadcom (AVGO): The semiconductor giant benefits from AI infrastructure demand, with Q3 FY2025 AI chip revenue surging 53% to $5.2 billion. A $10 billion Titan AI chip order (suspected to be from OpenAI) announced in September hints at new client inflows in 2026. At $349, the stock's forward P/E is reasonable, with a 1.2% dividend yield, making it suitable for long-term holding.

Eli Lilly (LLY): A growth star in pharma, its weight-loss drug Mounjaro drove Q2 revenue up 38% to $15.56 billion, with net profit soaring 91%. At $808, the valuation is high but supported by diabetes/obesity market expansion. With 35% EPS growth expected in 2025, shifting from tech volatility to healthcare is wise.

Advanced Micro Devices (AMD): An AI chip competitor, recent updates show stabilization in non-AI semiconductor businesses. At a 64x forward P/E, analysts project 35% annualized EPS growth. Collaboration with supply chain partners like ASML and AI device adoption in 2025 will be catalysts.

Palantir Technologies (PLTR): An AI data analytics pioneer, its earnings this week are highly anticipated. Current valuations are attractive, with double-digit upside potential in November.

These stocks focus on AI and healthcare, aligning with 2025's structural growth themes, with annualized return expectations exceeding 30%. Stocks to Avoid: Overvaluation and Uncertainty Tesla (TSLA): The EV giant's October 22 earnings missed expectations, with the stock dipping just 1% but lacking momentum. Tariff wars may raise supply chain costs, with 2025 growth slowing to 15% and a sky-high forward P/E (over 100x)—watch and wait.

Plug Power (PLUG): This hydrogen play relies on government subsidies but hasn't achieved sustainable profitability. Even after a 2025 reverse stock split, it remains weak, with market cap down over 50% and high debt a ticking time bomb.

Newsmax (NMAX): The media stock has plunged 88% this year, dragged down by industry competition and ad weakness, with no signs of recovery.

FactSet (FDS): The financial data provider fell 35.8% in Q3, with its valuation bubble burst and no short-term rebound momentum.

Molina Healthcare (MOH): The health insurer is down 44.5% this year, with regulatory uncertainty worsening—best avoided.

These stocks are trapped in valuation pitfalls or cyclical downturns, with downside risks exceeding 20%. Conclusion: Invest Rationally, Embrace Uncertainty November 1's U.S. stocks are like a "dance in the dark"—AI shines brightly, but trade, geopolitics, and valuation risks lurk beneath. Short-term corrections may continue, but history shows high-risk bull markets often breed opportunities. Diversify and monitor Fed moves and earnings season. Investing isn't gambling.