U.S. stocks closed out November with their strongest monthly gains since June. November gains were backed by investor consensus that a trade deal with China will soon be reached as well as belief that a near-term recession, both in the U.S. and globally, can likely be avoided. Wall Street was also encouraged by comments this month from Federal Reserve Chairman Powell saying that after three rate cuts this year, “there is a high bar before raising interest rates.”
- The rotation that began after Labor Day continued into November courtesy of Fed rate cuts and improving economic data.
- Investors began favoring cyclicals over defensive stocks and preferred value over lower quality and low volatility, while the yield curve started to normalize.
- The Dow Industrials gained 4.11% last month and the tech-heavy Nasdaq Composite jumped 4.64%. The Dow extended its YTD gain to 23.05%, while the Nasdaq is up 31.91% for the year.
- Oil ended on a sour note, down 5.06% on Friday to $55.17/barrel amid a cloudy global demand outlook and fears of oversupply. The pullback pared much of November’s oil gain, ending the month up just 1.7%.
The Monthly Recap is published by Cetera Investment Management LLC, an SEC registered adviser owned by Cetera Financial Group. Cetera Investment Management provides market perspectives, portfolio guidance, model management, and other investment advice to its affiliated broker-dealers, dually registered broker-dealers and registered investment advisers.
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