Credit: Shutterstock
A look at why the index is struggling this month
The Nasdaq has been sliding through November, dropping to around 22,433 on November 18 and extending days of losses. It is now down 3.6 percent for the month so far, making this one of its weakest stretches since April. Even with the slump, the index is still up about 19 percent for the year, but the momentum that carried tech all summer is beginning to fade.
A big part of the pullback comes from investors stepping away from expensive AI and tech names. Many of these stocks climbed fast earlier in the year, and people are now choosing safer areas like industrials, utilities, and financials. Major AI leaders, including Nvidia and AMD, have seen their share prices slide this month, weighing heavily on the Nasdaq.
Doubts about a possible December interest rate cut are also adding pressure. When borrowing costs stay high, growth-focused sectors feel it first, and tech is usually the hardest hit. At the same time, the recent government shutdown and delayed economic data are making markets more cautious overall.
Some areas are still holding up. Alphabet gained after news of a major new investor, and small-cap stocks have shown strength as money rotates into value-focused names. Analysts say this pullback is not a sign of panic but of investors taking a breather after a long tech rally.
For now, the Nasdaq is settling into a quieter phase as markets wait for new data and key earnings. The rest of November will show whether confidence returns or if the shift toward safer bets continues.
