Upon peaking in intensity, the nor'easter turned southward and gradually weakened; by November 1, its pressure had risen to . The low moved over warm waters of the Gulf Stream, where bands of convection around the center began to organize. Around this time, the system attained subtropical characteristics. On November 1, while the storm was moving in a counter-clockwise loop, a tropical cyclone had been identified at the center of the larger low. (Although these conditions are rare, Hurricane Karl during 1980 formed within a larger non-tropical weather system.)