The Nasdaq-100 Index® (NDX®) experienced a turbulent November 2025, ending the month lower by 1.6% from its October all-time highs. Despite this decline, NDX is still up by 21% year-to-date. The market saw a strong finish in the last week of November, helping to mitigate some of the losses.
Several factors contributed to the sell-off in November, including concerns surrounding AI capital expenditure, elevated valuations, and uncertainty regarding Federal Reserve rate cuts. The market also witnessed a shift in risk appetite, impacting not only equities but also cryptocurrencies. Bitcoin, for example, fell by over 30% from its highs during the month.
Performance across Nasdaq’s suite of indexes was mixed in November, with 62 out of the 124 indexes tracking gains. The average index was down by 0.3%, reflecting the overall market volatility.
The market saw increased equity volatility, as measured by the CBOE NDX Volatility Index (VXN), which peaked at nearly 33 in the middle of the month before settling back to 21 by the end of November. Various factors contributed to this volatility, including concerns over AI investments and capex, as well as uncertainty surrounding Federal Reserve rate cuts.
Despite a strong Q3 earnings season, concerns over elevated valuations persisted, impacting corporate debt issuance and spreads. The market sentiment shift in November drove U.S. investment-grade spreads above 80 basis points, the highest since June 2025. However, strong corporate fundamentals continue to support equity market returns.
Among the various Nasdaq indexes, the Nasdaq Sprott Lithium Miners™ Index (NSLITP™) was the best performer in November, gaining 19.3%, while the Nasdaq Ether Settlement Price™ Index (NQETHS™) recorded the worst performance, losing 21.4%.
Overall, the market sentiment in November was driven by a combination of factors, including AI capex concerns, elevated valuations, and uncertainty surrounding Federal Reserve rate cuts. Despite the volatility, strong corporate fundamentals continue to support equity market returns.
This article was written by the Nasdaq Index Research Team and is provided for informational and educational purposes only. Investors are advised to conduct their own due diligence and seek advice from a securities professional before making any investment decisions.
