U.S. markets are poised to close November in the red for the first time in seven months, with the tech-heavy Nasdaq down 2.15% and breaking a historic pattern where November typically delivers 1.8% gains. The unusual downturn comes as investors grapple with post-election uncertainty and tech stock volatility heading into December.
U.S. stock markets are heading toward an unusual November finale that breaks decades of historical patterns. With just three hours of trading remaining in the shortened Black Friday session, major indexes are locked in negative territory for the month - a stark departure from November's typical performance.
The numbers tell a troubling story. The Nasdaq Composite has retreated 2.15% this month, vastly underperforming its siblings as technology stocks stumbled through November. The S&P 500 sits 0.4% lower month-to-date, while the Dow Jones Industrial Average has declined 0.29%, according to CNBC calculations.
This performance marks a dramatic shift from historical norms. The S&P 500 has advanced an average of 1.8% in November since 1950, according to the Stock Trader's Almanac. Even more telling, in years following U.S. presidential elections, the index typically rises 1.6% during November - making this year's decline particularly notable.
Tech stocks have borne the brunt of November's selling pressure, with the sector's 2.15% monthly decline dragging down broader market performance. The weakness comes as investors reassess valuations in artificial intelligence and semiconductor names that powered much of 2024's gains.
Unless Friday's abbreviated trading session delivers an unlikely surge - which analysts warn could raise sustainability questions - all three major indexes are set to snap impressive winning streaks. The S&P 500 and Dow have risen for six consecutive months, while the Nasdaq had posted seven straight monthly gains.
The unusual post-election market behavior signals that traditional patterns may not hold in the current environment. "It's hard to see the market, in the coming months, or even years, moving according to any historical trajectory," noted market observers tracking the divergence from typical post-presidential election performance.
European markets provided little direction Thursday, with the Stoxx 600 inching up just 0.14% in thin trading. U.S. futures remained mostly flat Thursday night as markets prepared for the shortened Black Friday session.
