- U.S. equities rallied after Trump's reelection, with small-cap stocks gaining 11.0% and the S&P 500 reaching a new all-time high after returning 5.7% in November, driven by the prospect of tax cuts and less government oversight.
- Market breadth continued to widen as all eleven S&P 500 sectors advanced, led by consumer discretionary, which is typically a bullish sign for the broader market.
- Outside the U.S., developed and emerging market equities posted negative returns due to concerns over Trump’s nationalistic policies that would most likely hamper global trade and currency losses from a stronger dollar.
- At the November FOMC meeting, Fed Chair Powell announced a 25 basis point rate cut, bringing the target range to 4.50%-4.75%. Treasury yields, however, crept higher over subsequent weeks due to expectations of higher inflation from the new administration’s proposed economic policies.
- Within labor markets, the JOLTS survey reported an increase in job openings from 7.37 million in September to 7.74 million in October. Additionally, layoffs fell to their lowest level since June, while quits reached their highest level since May, indicating increased worker confidence in their ability to find a new job.
- Core PCE, the Fed's preferred inflation measure, rose by 0.3% in October and 2.8% year-over-year, aligning with expectations. Prices for services increased by 0.4%, while goods prices fell by 0.1%, though Fed officials remain confident that inflation is moving towards their 2% target.
- ISM Services PMI, which measures the economic activity of services companies, fell 3.9% from 56.0% in October to 52.1% in November, though remains above 50.0% which marks the cutoff between expansion and contraction.
- The Consumer Confidence Index rose from 109.6 in October to 111.7 in November, marking its highest level since July 2023. Consumers' inflation expectations dropped to 4.9%, the lowest since March 2020, despite concerns regarding potential inflation from Trump's policies.
- The housing market continues to weigh on consumer confidence as prices remain elevated and mortgage rates jumped higher after bottoming near 6.0% in late September.
