This is a new installment in an ongoing series where Marc Bautis and colleagues comment on hot topics in the financial industry. This week, Kayla Waller, Financial Planner, fills us in.
November 2023 Market Summary
Stocks recorded a bullish November as the S&P 500 advanced 9.1%, the Dow Jones Industrial Average grew 9.2% higher, and the NASDAQ surged 10.8%. The Russell 1000 finished November up 9.3%, and the small-cap Russell 2000 added 9.1%. Global indices joined the party as well–Emerging Markets posted an 8.0% gain in November and EAFE jumped 9.3%.
Energy was the month’s sole negative sector, declining 0.7%. The Technology, Real Estate, Consumer Discretionary, and Financial sectors all posted double-digit gains in November.
US New Single-Family Home Sales MoM continued its up-and-down ways in October, contracting by 5.6% after having jumped 8.6% in September. US Existing Home Sales sank 4%, down for the fifth consecutive month and 19th out of the last 21. The Median Sales Price of Existing Homes fell for the fourth straight month, to $391,800 in October.
Mortgage rates cooled down in November; the 15-year Mortgage Rate closed out the month at 6.56% after topping 7% for the first time since December 2000, and the 30-year ended November at 7.22%, down 0.79 percentage points since the end of last month.
October’s unemployment rate increased one-tenth of a percentage point to 3.9%, while the labor force participation rate decreased by that same amount to 62.7%.
The US inflation rate decreased to 3.24% in October, down from 3.70% in September. Core Inflation decelerated for the seventh consecutive month, from 4.15% in September to 4.03% in October. The US Consumer Price Index was essentially unchanged MoM, and the US Producer Price Index came in at 1.34%.
The Federal Reserve kept the benchmark Target Federal Funds Rate unchanged at 5.50% for the second consecutive FOMC meeting, which took place on November 1st.
Treasury yields tumbled in November as investors piled back into equities. Yields on the 5-year and 10-year treasuries fell by 0.51%, the most out of any duration on the curve. The 1-month T-Bill ended November unchanged at 5.56%.
Bautis Financial LLC is a registered investment advisor. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial advisor and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance.
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