What Happened in Markets and Politics on Nov 18, 2025?

TL;DR

The S&P 500 fell for a fourth straight day, its longest slump since August, as investors questioned AI valuations. A federal judge panel blocked Texas's redrawn congressional maps as likely racial gerrymandering, while Saudi Crown Prince Mohammed bin Salman pledged $1 trillion in US investment during his first Washington visit since 2018.

Transcript

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Key Insights

• The S&P 500 headed for its longest slump since August, falling for a fourth consecutive day, with the index down 0.4%, the Nasdaq down 0.7%, and the Dow down 0.7% amid selling in the world's largest tech companies.
• JPMorgan's Daniel Pinto warned at the Bloomberg Africa Business Summit that a correction is probable because current valuations assume a level of productivity that may not arrive as fast as the market is pricing.
• Microsoft and Nvidia are committing to invest up to a combined $15 billion in Anthropic, a move hosts described as circular or vendor financing that ties the developer closer to two of the biggest backers of rival OpenAI.
• A federal judge panel ruled Texas diluted minority voter strength through likely racial gerrymandering, granting a preliminary injunction after plaintiffs argued the maps dismantled four minority opportunity districts.
• The Texas redistricting decision could reach the Supreme Court and carries major implications for the 2026 midterms, following a Justice Department letter citing racial gerrymandering in the map Texas passed in 2021.
• California voters overwhelmingly approved new congressional lines earlier this month that could net Democrats up to five more seats, with Governor Gavin Newsom vowing to fight fire with fire against Texas.
• Saudi Crown Prince Mohammed bin Salman pledged to raise Saudi investment in the US from $600 billion to $1 trillion during his first Washington visit since 2018, months before journalist Jamal Khashoggi's killing.
• President Trump said the US was likely to approve a defense agreement and civil nuclear deal with Saudi Arabia, reiterated selling F-35 fighters, and discussed Saudi Arabia establishing formal ties with Israel via the Abraham Accords.

Questions & Answers

Q: Why is the S&P 500 falling?

The S&P 500 headed for its longest slump since August, falling for a fourth consecutive day, down 0.4% in the session with the Nasdaq down 0.7% and the Dow down 0.7%. Selling concentrated in the world's largest tech companies as market watchers increasingly questioned the AI trade. JPMorgan's Daniel Pinto said current valuations assume a level of productivity that may not materialize as fast as the market is pricing, suggesting a probable correction.

Q: How much are Microsoft and Nvidia investing in Anthropic?

Microsoft and Nvidia are committing to invest up to a combined $15 billion in Anthropic. The hosts noted this ties the AI developer closer to two of the biggest backers of its rival OpenAI, describing the arrangement as circular finance or vendor financing since Anthropic, maker of the Claude models, would then spend money back with the same companies providing the funding.

Q: What did the court rule on Texas redistricting?

A federal judge panel ruled that Texas diluted the strength of minority voters when redrawing its congressional districts, calling the maps likely racially gerrymandered. The judges granted a preliminary injunction following an October trial where plaintiffs argued the maps unlawfully dismantled four minority opportunity districts. The ruling follows a July Justice Department letter citing racial gerrymandering in the map Texas passed back in 2021.

Q: Will the Texas redistricting decision be appealed?

According to Texas Bureau Chief Julie Fine, the decision will definitely be appealed and could likely end up at the Supreme Court. One of the most conservative appeals courts, the appellate division in Louisiana, is nearby and could hear the case. These cases will likely be expedited by the groups filing them because of the fast-approaching 2026 midterm elections, with Texas primaries scheduled for March.

Q: What is California doing about redistricting?

Earlier this month, California voters overwhelmingly approved new congressional lines that could net Democrats up to five more seats in next year's House election. Governor Gavin Newsom said the state would fight fire with fire in response to Texas. The move reflects a broader tit-for-tat dynamic, with other states also discussing redistricting ahead of the 2026 midterms, drawing national attention to how courts handle these disputes.

Q: How much is Saudi Arabia planning to invest in the US?

During his Washington visit, Crown Prince Mohammed bin Salman discussed raising Saudi Arabia's investment in the United States from $600 billion to $1 trillion. MBS told reporters he believed the work with President Trump was creating good foundations for more economic growth and business in America, adding it would also work for world peace. The visit was his first to Washington since 2018.

Q: What deals did Trump discuss with Saudi Arabia?

President Trump said the US was likely to approve a defense agreement with the oil-rich kingdom and a civil nuclear deal, while reiterating that Washington would sell F-35 fighters to the country. Leaders also discussed access to sophisticated AI chips and data centers, and the possibility that Saudi Arabia could establish formal diplomatic ties with Israel as part of the Abraham Accords.

Q: What topics came up during the Trump-MBS press conference?

During the White House press conference and reporter questioning, discussions covered upping Saudi investment from $600 billion to $1 trillion, access to sophisticated air chips and data centers, a possible defense agreement, a civil nuclear deal, and F-35 fighter sales. Reporters also raised the Epstein files, conflicts of interest, and the killing of journalist Jamal Khashoggi, which occurred months after MBS's last 2018 visit.

Summary & Key Takeaways

• US equities extended losses, with the S&P 500 down for a fourth straight day and headed for its longest slump since August. Selling hit the largest tech companies as market watchers increasingly questioned the AI trade, though indexes recovered off their worst levels of the session.

• A federal judge panel blocked Texas's redrawn congressional districts, ruling they likely diluted minority voter strength through racial gerrymandering. The decision, expected to be appealed and possibly reach the Supreme Court, carries major implications for the 2026 midterms as Republicans cling to a narrow House advantage.

• Saudi Crown Prince Mohammed bin Salman visited Washington for the first time since 2018, pledging to raise US investment from $600 billion to $1 trillion. Discussions covered a defense agreement, civil nuclear deal, F-35 sales, AI chips, data centers, the Epstein files, and possible Saudi-Israel ties.