Wall Street Stumbles in November as Tech Stocks Face Sharp Pullback

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After months of near-uninterrupted gains, Wall Street is experiencing a turbulent November, marked by steep losses in the technology sector and renewed uncertainty about the economic outlook. The tech-heavy Nasdaq Composite is down nearly 3.5% this month, putting it on track for its first monthly decline since March. In just two weeks, the index has lost an estimated $1.74 trillion in market value as investors pull back from high-flying tech names.

Friday’s session captured the market’s jittery mood. Stocks opened sharply lower, then bounced as dip-buyers stepped in. The Nasdaq ultimately eked out a 0.13% gain after sliding almost 1.9% earlier in the day, while the S&P 500 and Dow ended slightly lower. Analysts say enthusiasm built up during months of gains has left investors more vulnerable to disappointment, especially with tech valuations already stretched.

The recent government shutdown has added to the unease by delaying key economic data releases. With fresh figures now resuming, investors are bracing for signs of how the U.S. economy is holding up, and what that means for the Federal Reserve’s next interest-rate move. Markets now see less than a 50% chance of a December rate cut, down sharply from expectations a month ago.

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AI-related stocks, which powered the market’s rally earlier this year, are now facing heightened scrutiny. Concerns about soaring capital expenditures, debt issuance, and the uncertain profitability of massive AI deals are driving sell-offs across major tech names. Oracle, Meta, Nvidia and Palantir have all seen significant declines from recent highs.

Despite the turbulence, some analysts argue that the pullback is a healthy reset rather than the start of a deeper correction. After months of steady gains, investors appear to be taking profits and rotating into other sectors, recalibrating expectations for a market that has been running hot since spring.