As November 2024 unfolded, the financial landscape navigated through significant developments. With the presidential election wrapping up and market sentiment reaching new heights, November proved to be a rewarding month for long-term investors. Let’s dive into the key happenings of this past month.

Stock Market Triumphs in November

November was a buoyant month for U.S. stocks, as major indexes thrived despite initial uncertainties. Following the settled presidential election, the stock market enjoyed robust gains. The S&P 500 witnessed a notable increase of 5.73%, the Nasdaq 100 climbed by 5.23%, and the Dow Jones Industrial Average led with a rise of 7.54%.

Federal Reserve’s Calculated Moves

The Federal Reserve commenced November with a policy meeting on November 7th, decisively cutting the overnight lending rate by 25 basis points. This move was anticipated by the market, aligning with the central bank’s previous actions and maintaining the target lending rate range between 4.50% - 4.75%. Such decisions continue to be pivotal in supporting the labor market while the Fed seeks further data to guide future policy.

Yield Curve Dips Favorably

In a favorable turn for prospective mortgage borrowers and equity investors, the 10-year Treasury Note yield fell slightly in November, closing at around 4.177%. This slight decline comes after an increase in the previous month, bringing positive vibes to the investor community.

Jobs Market Commentary

The job market faced a bit of a challenge in November, with the October non-farm payrolls hinting at a mere creation of 12,000 jobs. Factoring the revisions from the previous months, this slowdown was partly attributed to Hurricanes Helene and Milton. Despite the numbers, the major U.S. equity indexes showed resilience, closing positively on the report day.

Inflation Metrics: Assessing the Terrain

October's inflation numbers, unveiled in November, presented a mixed bag. The Consumer Price Index recorded a 0.2% increase month-over-month, aligning with expectations and resulting in a yearly rate of 2.6%. While this suggests a stable inflationary environment overall, shelter costs remained stubborn, representing a significant share of the inflation rise. Additionally, the Producer Price Index also recorded a monthly increase of 0.2%, maintaining the cautious outlook on inflation.

Boost in Consumer Confidence

Efforts from a rapid election outcome bolstered consumer confidence, pushing it to a 16-month peak at 111.7. Alongside this, retail sales performances defied expectations, supported by upbeat early Black Friday statistics showing a 3.4% yearly increase in spending.

Market Calm Detected

In November, short-term market volatility decreased significantly, with the CBOE S&P 500 Volatility Index registering levels unseen since July. This depicted a rise in market confidence as the need for portfolio hedges waned.

As 2024 comes to a close, consider connecting with your financial advisors for tailored year-end financial decisions. Remember, long-term investing remains your steadfast ally on this financial journey.