Something interesting is happening in the market right now. After months of watching the same handful of AI chip stocks dominate headlines, investors are suddenly discovering that other parts of the market exist. Small caps, healthcare, even boring industrial names are suddenly back in fashion. It's like everyone just remembered that productivity gains from artificial intelligence might actually benefit more than just the companies making the chips.
The Russell 2000 jumped 2% on Tuesday, extending what's becoming a legitimate rally. Over three sessions, the small-cap index is up 7%, marking its best three-day stretch since November 2024. This isn't just a dead cat bounce. There's real money flowing into cyclical plays and undervalued names as traders bet that AI's impact will be far broader than initially priced in.
Healthcare emerged as Tuesday's unexpected star. The Health Care Select Sector SPDR Fund Health Care Select Sector SPDR Fund (XLV) climbed 2.2% on the day and is now up 10% for the month. That's its strongest monthly gain since April 2020, when the world was still figuring out how to pronounce "coronavirus." It turns out that when investors get nervous about tech valuations, they remember that people will always need medicine.
Nvidia's Bad Month Gets Worse
While healthcare and small caps celebrated, the former market darlings had a rougher day. NVIDIA Corp. (NVDA) dropped nearly 4% after reports surfaced that Meta Platforms Inc. (META) is considering a multibillion-dollar investment in Alphabet Inc.'s (GOOG) (GOOGL) custom AI chips. This is the kind of news that keeps Jensen Huang up at night. If the hyperscalers start building their own chips at scale, Nvidia's dominance in the generative AI supply chain looks a lot less permanent.
Nvidia is now down 14% in November, tracking toward its worst monthly performance since late 2022. Remember when everyone thought this stock only went up?
Advanced Micro Devices Inc. (AMD) had it even worse, falling 7% Tuesday and extending its November decline to 20%. That puts AMD on pace for its worst monthly drop since September 2022. The semiconductor rotation isn't subtle anymore. It's a full-scale exodus.
Not All Tech Is Suffering
The tech sector isn't monolithic, though, and some names are thriving while chips crumble. Alphabet (GOOG) (GOOGL) hit a record above $320 per share and is now up for six consecutive months. Investor optimism around Google's competitive positioning in AI is building, especially as the company demonstrates that it can compete with OpenAI and others without relying solely on third-party chip suppliers. Building your own infrastructure turns out to be an advantage.
Apple Inc. (AAPL) also touched new all-time highs near $280, boosted by CEO Tim Cook's commitment to increasing investment in China. In a market environment where everyone's looking for safety, Apple's fortress balance sheet and ecosystem lock-in remain compelling.
Earnings Winners and Losers
In the earnings corner, Zoom Video Communications Inc. (ZM) surged past 13% after delivering stronger-than-expected quarterly results. The stock is eyeing its best daily performance since November 2022. Apparently, video conferencing isn't dead yet, despite what your return-to-office mandate might suggest.
On the flip side, Burlington Stores Inc. (BURL) tumbled 10% after issuing a weaker-than-expected fourth-quarter forecast. Discount retail is feeling the pinch as consumers adjust their spending patterns heading into the holidays.
Commodities and Crypto Update
In commodities, gold rose 0.5% to $4,150 per ounce, continuing its role as the market's comfort blanket. Oil, meanwhile, slid 1.5% to $57 per barrel following reports that Ukraine had accepted a U.S. peace proposal. Ukrainian President Volodymyr Zelensky clarified that further negotiation is still required, but the initial headlines were enough to knock crude lower.
Bitcoin (BTC) was largely unchanged at around $87,000, but zoom out and the picture looks less rosy. The world's largest cryptocurrency is down 20% month-to-date, tracking toward its worst monthly performance since June 2022. So much for "digital gold."
Tuesday's Performance In Major U.S. Indices, ETFs
| Major Indices | Price | 1-day chg. % |
| Russell 2000 | 2,460.96 | 2% |
| Dow Jones | 47,027.76 | 1.2% |
| S&P 500 | 6,755.55 | 0.8% |
| Nasdaq 100 | 24,973.18 | 0.4% |
Updated by 12:45 p.m. ET
According to market data:
Russell 1000's Top 5 Gainers On Tuesday
Russell 1000's Top 5 Losers On Tuesday
