With the dust settling post-presidential election and an anticipated stance from the Federal Reserve, November 2024 marked a pivotal moment for long-term investors. This month, market sentiment surged, setting the stage for what could be a promising conclusion to the year.

U.S. Stock Indices Soar

November was a notable month for U.S. equity markets. The S&P 500 rose by 5.73%, continuing its strong run with gains in six of the last seven months. The Nasdaq 100 added 5.23%, while the Dow Jones Industrial Average led with a 7.54% increase. This uptick reflects the overall positive momentum following the election.

Federal Reserve's Rate Adjustment

The Federal Reserve's decision to cut the overnight lending rate by 25 basis points at their November 7th meeting was expected. This adjustment, from the prior 50 basis point reduction in September, places the target lending rate range at 4.50% - 4.75%. In response, there is a 66% probability of another rate cut in December.

Treasury Yields Slip

Observing Treasury yields, the 10-year note experienced a moderate decline, closing November at approximately 4.177%, dropping over 10 basis points from October. This dip provides encouraging news for prospective mortgage borrowers and long-term investors alike.

Jobs Market Reflects Challenges

November's labor market data highlighted challenges, reporting the creation of only 12,000 jobs — the lowest since 2020. This downturn was anticipated, partly due to the impact of Hurricanes Helene and Milton. Nevertheless, U.S. equity markets performed well following this release, indicating resilience.

Inflation Observations

Inflation metrics revealed a stable yet persistent environment. The Consumer Price Index (CPI) posted a 0.2% increase for October, tracking a yearly rise to 2.6%. Shelter costs continue to climb, which remains a focal concern. On the same note, the Producer Price Index (PPI) mirrored CPI conditions, aligning with estimates yet showing an uptick from previous figures.

Strength in Consumer Confidence

Consumer confidence surged to its highest since July 2023, marked by a 16-month peak at 111.7. Retail sales exceeded predictions in October, revealing the steadfastness of U.S. consumers amid economic fluctuations.

Calm in Market Volatility

November saw a decline in market volatility, with the CBOE S&P 500 Volatility Index hitting lows unseen since July. This downturn suggests diminished investor fear and hints at increased market stability.

As the end of the fiscal year looms, it is vital to confer with your financial advisors regarding potential year-end portfolio adjustments. Our team is ready to assist you with personalized financial strategies, ensuring your investments align with long-term gains and tax advantages.