Market Month: November 2025

The Markets (as of market close November 28, 2025)

November proved to be a volatile month for the stock market, ultimately concluding with slight gains for several of the major market indexes. Through the middle of the month, investors grappled with concerns about the valuation of megacap tech stocks, leading most benchmark indexes to decline for three straight weeks. However, the market staged a strong rebound late in the month leading into the Thanksgiving holiday, as more economic information became available following the reopening of the federal government. The late-month rally was largely driven by renewed hopes for a Federal Reserve interest rate cut in December. Each of the benchmark indexes ultimately ended November on an uptick, except the NASDAQ, which ended the month in the red, despite a strong rally during the last week of the month.

Market volatility was largely driven by the performance of a small number of megacap technology companies, frequently referred to as the "Magnificent Seven," due to their significant weighting in the S&P 500 and the NASDAQ, prompting their collective performance to outpace the broader market.

A major catalyst for the late-month rally was growing investor confidence in a third interest rate cut by the Federal Reserve in early December. Key federal officials have indicated that labor-market risks are a primary concern, increasing the likelihood of a rate cut. Among the market sectors, health care, communication services, energy, and consumer staples outperformed in November, while information technology, consumer discretionary, and industrials lagged.

FactSet's latest review of third quarter U.S. corporate earnings was generally favorable. Blended year-over-year earnings growth for the S&P 500 was roughly 13.4%, which marked the fourth consecutive quarter of double-digit earnings growth. In addition, 83% of S&P 500 companies reported earnings per share above estimates, well above the 10-year average of 75%.

U.S. Treasury yields in November were on a downward trend, with 10-year Treasuries falling eight basis points, and the yield on two-year Treasuries dipping about five basis points. The decline in yields, particularly the 10-year Treasury note, generally reflects investor expectations of further interest rate cuts as the Federal Reserve attempts to balance rising inflationary pressures against a softer labor market.

Crude oil prices were on track for a fourth consecutive monthly decline. A surge in global supply, particularly from non-OPEC+ producers like the United States and Brazil, has led to a steady increase in crude inventories, which has driven crude oil prices lower. The retail price of regular gasoline was $3.061 per gallon on November 24, $0.026 above the price a month earlier and $0.017 higher than the price a year ago.

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• EYE ON THE WEEK AHEAD

Wendy Nelson, CEO of Wind River Wealth Advisors, aims to provide comprehensive investment management, retirement planning, financial planning, asset management, and portfolio management services to protect your money with knowledgeable strategies and plans through the guidance of a personal, independent financial advisor.