MRKT Matrix Nasdaq Slips As Investors Rotate Out Of Tech
7 snips
Nov 11, 2025 Investors are rotating out of tech, causing the Nasdaq to slip while the Dow hits record highs. Economic uncertainties loom as crucial data remains unreported, casting doubt on the outlook. Holiday hiring is tougher than ever, with fewer retail roles available and competition rising. AI stocks face pressure from weak guidance, leading to significant sales shifts like SoftBank's Nvidia stake sell-off to boost AI investments. Meanwhile, accusations arise against tech firms for potentially inflating earnings through accounting practices.
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Rotation From Growth To Value
- Investors rotated from richly valued tech stocks into blue-chip value names, lifting the Dow while the Nasdaq slipped.
- Analysts say high tech valuations make the sector vulnerable to modest negative news, fueling the shift toward value and quality stocks.
AI Headlines Amplify Tech Fragility
- Weak guidance from CoreWeave and SoftBank's NVIDIA sale pressured AI-related shares like Micron and Palantir.
- Lofty tech valuations amplified the impact of modest negative headlines on AI and chip stocks.
Shutdown Hobbles Economic Visibility
- The government shutdown disrupted key economic data collection, potentially permanently losing October inflation and jobs data.
- Missing surveys will make short-term economic assessments cloudy until data collection resumes, per Kevin Hassett.