After a strong autumn, the stock market moved sideways in November. Several leading stock market indices remained close to their previous highs, while investors focused increasingly on corporate earnings and upcoming interest rate announcements. One driving force during the month was the continued strong reports from several global technology and industrial companies. The extensive investments in new infrastructure and data centers are seen by many as a sign of the structural growth that digitization, automation, and AI continue to generate in the economy. This supported sentiment and contributed to broad global indices remaining stable. In addition, the market began to price in an increased probability of a further interest rate cut in the US, which contributed positively towards the end of the month. Furthermore, economic forecasts in November showed a slightly improved growth rate compared with previous assessments, which gave rise to some optimism for a broader section of the global stock market ahead of 2026. Global stock markets performed well in November, with the MSCI World rising 0.3% and the S&P 500 up slightly by +0.1%.
At the same time, the reporting season served as a reminder that the fundamentals of many companies are strong. One of the major events of the month was Nvidia’s quarterly report, in which the company once again exceeded expectations on all counts and its guidance was revised significantly upwards. Revenues rose 62% compared to the previous year and 22% from the previous quarter, while the data center segment increased by a full 66% from the previous year and 25% compared to the second quarter.
Leading macro indicators point to global growth, and earnings estimates for global equities have turned upward and are now above the levels at the beginning of the year – a sign of strength that supports the stock market despite the short-term rebound. At the same time, there is increased dispersion between regions and sectors, with the US and tech continuing to be profit drivers, but Europe, Japan and parts of the emerging markets offering more defensive or value-oriented alternatives.
Developments in November remind us of the importance of combining optimism with discipline. In an environment where leading technology companies are delivering record profits alongside discussions about risks, it is crucial to stick to a fact-based, long-term, and quality-oriented approach. We therefore continue to focus on companies with strong balance sheets, sustainable cash flows and a proven ability to translate structural trends – such as AI, digitalisation and demographics – into lasting profit growth. It is these types of sustainably profitable companies that, despite periods of increased volatility such as we saw in November, are best positioned to generate stable and attractive returns over time.
Kind regards,
Nordic Equities
