The Nasdaq Composite broke off a seven-month rally, ending November in negative territory

The Nasdaq Composite Technology Sector Index fell 1.5% in November, interrupting a seven-month rally. The reason was investors' doubts about the sustainability of the profitability of the AI sector, CNBC notes. S&P 500 and Dow Jones Industrial Average managed to maintain positive dynamics thanks to this week's rally: the market is waiting for the Federal Reserve to lower the rate in December for the third time this year.

At the same time, the holiday week was the best for U.S. stocks in five months, Bloomberg writes. At the end of the week, the Dow Jones and S&P 500 rose more than 3%, and the Nasdaq Composite - more than 4%.

After a Thanksgiving break, stocks ended Friday's shortened trading day higher, with the Nasdaq Composite adding 0.7%, the S&P 500 up 0.5% and the Dow Jones up 0.6%. In trading on Nov. 28, one of the leaders of the technology sector was chipmaker Intel after it became known that the company may return to the production of processors for Apple after a five-year hiatus. Its shares soared more than 10%.

Traders began to put Fed policy easing more heavily in the forecast after New York FRB President John Williams said last week that he sees room for "additional near-term adjustment" in the key rate range.

"Sentiment has shifted back to more risk appetite, with the market now 80-85% confident that we'll see a Fed rate cut in a couple weeks," Zacks Investment Management client portfolio manager Brian Ma Mulberry told CNBC.

This article was AI-translated and verified by a human editor