Nasdaq Down 0.7% in November as Investors Shift to Defensive Stocks

Published on 11/11/2026 · Source: cnbc.com

AI Summary

Summarized by AI from the source below

This shift affects market dynamics by increasing interest and valuations in traditionally stable sectors while tech sectors see increased risk premiums and volatility. For ordinary investors, this means potential changes in portfolio performance based on sector exposure, with defensive stocks showing strength through earnings multiples and tech stocks experiencing valuation adjustments driven by execution risks and capital spending concerns related to artificial intelligence development.

Informational only, not financial advice. Content is AI-generated and may contain errors. How this works.

Our take

Opinion from the Newsstocks AI desk, not investment advice

In our view, the current market rotation reflects heightened risk aversion toward technology stocks due to AI execution concerns. The valuation differences within sectors suggest investors are paying a premium for stability in defensives while discounting riskier tech names. Further changes would depend on developments in AI capex and earnings.

Key numbers

Nasdaq YTD gain as of Nov 9: 8.7%
Nasdaq October loss: 5.3%
Nasdaq November loss to date: 0.7%
Kospi October loss: 16.2%

What could help

Defensive sectors such as consumer staples and healthcare have seen significant gains, offering more stable investment options.

What could hurt

Tech sector valuations are under pressure due to AI-related execution risks and capital expenditure concerns.

The background

Investors often shift to defensive stocks during market volatility to reduce risk. Defensive stocks typically include consumer staples, healthcare, and utilities sectors, which tend to be more stable.

Questions readers ask

Why did the Nasdaq Composite fall in November?

The Nasdaq Composite fell 0.7% in November due to increased volatility driven by concerns about artificial intelligence investments and execution risks in the tech sector.

What sectors have gained as tech stocks fell in 2026?

Defensive sectors including consumer staples, healthcare, and utilities have gained significantly as investors move to more stable assets during periods of market volatility.

How have semiconductor stocks performed recently?

Semiconductor stocks, especially in South Korea's Kospi index, lost 16.2% in October and over 8% month-to-date, with a 45% valuation drop since June noted for U.S. semiconductor stocks.