U.S. Markets
Stocks were mixed in November as a late-month rally almost clawed back losses from earlier in the month.
The Standard & Poor’s 500 Index rose 0.13 percent, while the Nasdaq Composite declined 1.51 percent. The Dow Jones Industrial Average edged up 0.32 percent11.
Then the Grinch thought of something he hadn’t before! What if Christmas, he thought, doesn’t come from a store. What if Christmas… perhaps… means a little bit more!
Dr. Seuss, How the Grinch Stole Christmas!
Focus on AI
Stocks hit a rough patch early in the month as investors grew skittish over the valuation of tech companies that are investing in AI.2
Labor market news exacerbated the selling pressure. While ADP’s latest report showed stronger-than-expected hiring by private employers in October, the positive market sentiment was countered by a well-known outplacement firm’s report of a steep increase in corporate layoffs the same month34.
Economy Watch
Stocks slid again after news that consumer sentiment hit its lowest level in three years. The survey data appeared to confirm investors’ fears about the fragile labor market5.
After the federal government’s shutdown ended, investors’ focus shifted to the Fed as they kept an eye on big consumer-related stocks for insights into the economy6.
Fed Drama
The Fed’s October meeting minutes revealed divisions among the Committee’s voting members about whether to adjust rates in December. But New York Fed President John Williams seemed to reassure investors that a rate adjustment at the Fed’s December meeting was still a possibility7.
The bounce was sharp as stocks battled through mixed economic data. The markets ended the month on a five-day winning streak, however, which curbed losses for all three major averages8.
Sector Scorecard
Health Care (+9.29 percent) was the clear leader for the month. Energy (+1.30 percent), Real Estate (+1.88 percent), Materials (+4.35 percent), Consumer Staples (+4.05 percent), Financials (+1.83 percent), Utilities (+1.72 percent), and Communication Services (+0.51 percent) all finished higher9.
On the downside, the Technology sector dropped nearly 5 percent (-4.81 percent). Also lower were Consumer Discretionary (-1.45 percent) and Industrials (-0.88 percent).
