November market review

November market review

A mid-month
bout of volatility focused primarily on the AI tech giants gave way to a
broader rally in November’s final days amidst renewed expectations the US
Federal Reserve (Fed) will cut interest rates in the coming weeks.

The late
surge pushed the S&P 500 and Dow Jones Industrial Average indexes into
positive territory, though just barely, for the seventh consecutive month. The
tech-heavy Nasdaq index was down slightly, ending a seven-month run.
Performance for all three remains strong for the year.

“Pullbacks
are common – and this one was short-lived,” Raymond James Chief Investment
Officer Larry Adam said. “With the AI theme evolving, the Fed’s next move
uncertain, and an economy straddling slowing growth and rising inflation, a
pause was no surprise. Equity fundamentals look strong heading into 2026, but
valuations in the 99th percentile point to near-term caution and heightened
volatility.”

Also in
November:

·
The
longest shutdown in US government history ended in November when lawmakers
passed a funding package to extend government operations through January 30,
2026.

·
Employment
growth was stronger than expected in September according to the delayed release
from the Bureau of Labor Statistics.

·
Trade
tensions between the US and China eased.

·
Diplomatic
efforts for a peace deal between Russia and Ukraine picked up pace.

·
The yield for the
10-year Treasury was down 0.06%.

The
bottom line

After an
impressive run, the major players in the AI space driving this year’s equity
rally hit a patch of volatility in November. This is not unusual. Pullbacks are
normal. In fact, given elevated valuations, periods of volatility may occur.
The future of AI and the mega-cap companies that invest in it continues to
look promising. For the long-term investor, the market outlook remains
positive.

Pendle Hill
Advisors is proud to contribute to the Montgomery County News with our weekly
curated financial news and topics. If you have any questions about the markets,
your financial plan, or anything, please feel free to reach out to our office
for a no cost initial consultation.

Kent Pendleton, AAMS®

Financial Advisor, RJFS

Pendle Hill Advisors LLC

14375 Liberty St, Ste 109 | Montgomery,
TX 77356

T 936-297-8267

Kent.Pendleton@raymondjames.com | www.raymondjames.com/pendlehilladvisors

Material
created by Raymond James for use by its advisors. Securities offered
through Raymond James Financial Services, Inc. Member FINRA/SIPC. Investment
advisory services are offered through Raymond James Financial Services
Advisors, Inc. Pendle Hill Advisors is not registered broker dealers and is
independent of Raymond James Financial Services.

Investing
involves risk, and investors may incur a profit or a loss. All expressions of
opinion reflect the judgment of the Raymond James Chief Investment Officer and
are subject to change. There is no assurance the trends mentioned will continue
or that the forecasts discussed will be realized. Past performance may not be
indicative of future results. Economic and market conditions are subject to
change. Diversification does not guarantee a profit nor protect against loss.