Are tech stocks falling behind the rest of the market?

US Markets End the Week on a Positive Note

US equity indices closed higher on Friday, extending weekly gains despite a weaker overall performance in November. The Nasdaq rose 0.4%, the S&P 500 increased by 0.3%, and the Dow added 124 points. A temporary cooling issue at a major data centre caused a brief interruption in futures trading during the morning session, but operations resumed shortly thereafter, allowing markets to stabilise.

Tech Sector Faces Monthly Pressure

November proved challenging for technology stocks. The Nasdaq is set to close the month nearly 2% lower, ending a seven-month winning streak. Similarly, the S&P 500 is trending slightly down, marking what could be its first monthly decline after six consecutive gains. The Dow remains almost unchanged for the month. Investor sentiment has been cautious as the profitability timeline of major AI players continues to be questioned.

Weekly Gains Show Market Resilience

Despite the softer monthly performance, all major indices have delivered strong weekly gains. The Dow is up nearly 3% week-to-date, the S&P 500 has risen around 3%, and the Nasdaq has gained almost 4%. A rebound in major technology names helped strengthen overall sentiment, raising expectations of a potential year-end rally as investors look for opportunities in growth stocks trading at lower valuations.

Airline Stocks Benefit from Holiday Travel Surge

Airline stocks outperformed as the aviation regulator projected the busiest Thanksgiving travel period in 15 years, estimating more than 360,000 flights. Travel demand and steady booking trends supported the sector’s performance throughout the week. Several airlines posted modest gains, adding strength to the transportation segment of the market.

Seasonal Hiring Declines Despite Strong Consumer Demand

Holiday hiring plans indicate one of the lowest levels in a decade. Retailers are expected to hire between 265,000 and 365,000 seasonal workers, compared with 442,000 last year. Data suggests these are the weakest figures since 2012. Interestingly, interest in seasonal jobs has risen 27% year-over-year, highlighting a demand-supply mismatch in the labour market.

Notable Stock Moves of the Day

A slight decline was recorded for a leading exchange operator after temporary trading disruptions caused by a data centre cooling problem. Another company dropped nearly 14% after announcing a reverse stock split. Conversely, a technology-focused manufacturer gained over 4% as it officially entered a major stock market index, boosting investor attention.

Economic Outlook Points to 2026 Growth

Markets are scheduled to close early at 1 p.m. ET, with no major economic data or earnings reports due. Analysts continue to forecast moderate growth into 2026. Some financial institutions have projected S&P 500 targets ranging between 7,500 and 8,000, suggesting confidence in the broader economic trajectory despite short-term volatility.