Monthly Market Update - November 2026

October proved to be a month of contrasts for investors. The tech-heavy NASDAQ 100 fell 6.63% and the S&P 500 slipped 0.87%, while the value-oriented Dow Jones Industrial Average gained 1.76%. Renewed concerns about the scale of AI spending prompted investors to rotate out of Technology and Communication Services and into more defensive areas. As a result, nine of the eleven S&P 500 sectors finished the month higher, led by Energy, which rose 14.00% as tensions in the Middle East pushed oil prices up.

Fixed income rebounded as Treasury yields retreated from multidecade highs, with the 10-year yield falling to approximately 4.93% and the Bloomberg US Aggregate Bond Index gaining 2.44% for the month. Economic data was generally resilient: GDP grew 3.4% and consumer spending remained healthy, but job growth slowed to just 29,000 and unemployment increased to 4.2%.

Short-term market swings are a normal part of investing, and your long-term plan is built to weather them. If you have questions or would like to talk about your goals, we’re here to help. As always, please reach out with any questions. Happy November!

Stocks

October brought both tricks and treats, with the tech heavy NASDAQ selling off -6.63%, but the more value-oriented Dow Jones rising 1.76%. The S&P 500, which is largely comprised of tech-stocks fell, but only slightly, lowering by -0.76%. Technology stocks declined as renewed concerns over the scale of AI spending prompted investors to rotate into more defensive areas of the market. Meanwhile, ongoing tensions in the Middle East continued to weigh on equities, driving energy prices higher and adding to inflationary pressures. Despite these concerns, the Federal Reserve opted to hold interest rates steady at its October meeting, choosing to await additional economic data before considering a second rate hike this year. The decision provided some relief to equity markets amid an otherwise challenging backdrop.

Sector Performance

Despite major equity indices falling, nine of the eleven S&P 500 sectors actually finished the month higher. Technology and Communication Services were among the hardest hit, as renewed concerns surrounding AI spending prompted a significant selloff in companies tied to the AI trade. Earnings reports from Alphabet and Meta raised concerns among investors over the scale of AI investment and whether that spending was translating into sufficient revenue growth, weighing on AI-related stocks across multiple sectors. Meanwhile, Energy was the top-performing sector as escalating tensions in the Middle East drove oil prices higher. Overall, October saw broader participation across sectors, reflecting the rotation away from technology and into other areas of the market. Despite recent volatility, nine of the eleven sectors remain in positive territory year-to-date.

Bonds

Fixed income markets rebounded in October as Treasury yields retreated from multidecade highs reached in the previous month. With bond prices moving inversely to yields, the decline in the 10-year Treasury yield to approximately 4.93% by month-end provided a favorable backdrop for fixed income performance. Additionally, the Federal Reserve voted to hold interest rates steady at its October meeting, although two of the twelve policymakers dissented in favor of a rate hike, highlighting ongoing concerns about inflation and the potential need for further tightening. With inflation remaining above the Fed’s 2% target, interest rates are likely to remain elevated as policymakers continue to balance persistent price pressures against broader economic conditions. 

Economic Update

Economic data released in October was generally more positive than negative, highlighting the resilience of the U.S. economy despite the challenges faced throughout the year. Gross Domestic Product (GDP) growth was came in at 3.4%, comfortably above the economy’s longer-term growth trend of approximately 2%. The reading was supported by stronger business investment and consumer spending, two key drivers of economic growth. However, the labor market showed signs of softening, adding just 29,000 jobs, well below expectations of 90,000, while the unemployment rate edged higher to 4.2%, although it remains near all-time lows. Inflation continued to move in the wrong direction, with the Consumer Price Index (CPI) rising 3.7% year-over-year, above expectations, while the Federal Reserve’s preferred inflation gauge, the Personal Consumption Expenditures (PCE) Price Index, came in at 3.6%, in line with forecasts. Overall, the economy remains on solid footing, supported by healthy GDP growth and resilient consumer spending. While inflation remains elevated, much of the recent pressure has been driven by higher energy prices. Looking ahead, it will be important to monitor how persistent inflation, a cooling labor market, and the ongoing conflict in the Middle East influence the broader economic outlook.

Look beyond investments and consider how your everyday cash fits into your financial plan.

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Merging exercise with volunteering could offer a “powerful” solution to the growing mental health crisis, researchers said this week.

Academics studied 2,800 volunteers at the UK-based charity GoodGym, an organization that integrates regular physical exercise such as running, walking or cycling, with practical volunteering and social support.

Regular participation was linked to a significant reduction in poor mental health compared to a control group, researchers found. Volunteers also reported improved feelings of trust, connectedness and belonging.

Academics believe their findings provide policymakers with a cost-effective means of relieving pressure on stretched health services. 

“Sports and volunteering can be powerful tools in addressing the growing mental health crisis documented in recent years and, in the context of increasingly stretched health resources, [are] highly cost-effective,” said Dr Maria Cotofan, senior lecturer in economics and policy at King’s College London, which led the research.

To learn more about this inspiring story, read the full article here.

THOUGHT FOR THE MONTH

^{Index Definitions}

^{Dow Jones Industrial Average: The Dow Jones Industrial Average® (The Dow®), is a price-weighted measure of 30 U.S. blue-chip companies. The index covers all industries except transportation and utilities.}

^{Dow Jones U.S. Real Estate Total Return Index: The index is designed to track the performance of real estate investment trusts (REIT) and other companies that invest directly or indirectly in real estate through development, management, or ownership, including property agencies.}

^{NASDAQ Composite: The NASDAQ Composite is a market-cap weighted index of all issues listed on the Nasdaq stock exchange. It is heavily weighted towards the technology sector.} 

^{S&P 500 Bond Index: The S&P 500® Bond Index is designed to be a corporate-bond counterpart to the S&P 500, which is widely regarded as the best single gauge of large-cap U.S. equities. Market value-weighted, the index seeks to measure the performance of U.S. corporate debt issued by constituents in the iconic S&P 500.}

^{S&P 500 Consumer Discretionary: The S&P 500® Consumer Discretionary comprises those companies included in the S&P 500 that are classified as members of the GICS® consumer discretionary sector.}

^{S&P 500 Consumer Staples: The S&P 500® Consumer Staples comprises those companies included in the S&P 500 that are classified as members of the GICS® consumer staples sector.}

^{S&P 500 Energy: The S&P 500® Energy comprises those companies included in the S&P 500 that are classified as members of the GICS® energy sector.}

^{S&P 500 Financials: The S&P 500® Financials comprises those companies included in the S&P 500 that are classified as members of the GICS® financials sector.}

^{S&P 500 Index: The S&P 500® index is a market-cap weighted index of the largest 500 companies headquartered in the United States. The index covers approximately 80% of available market capitalization.}

^{S&P 500 Utilities: The S&P 500® Utilities comprises those companies included in the S&P 500 that are classified as members of the GICS® utilities sector.}

^{S&P U.S. Aggregate Bond Index: The S&P U.S. Aggregate Bond Index is designed to measure the performance of publicly issued U.S. dollar denominated investment-grade debt. The index is part of the S&P AggregateTM Bond Index family and includes U.S. treasuries, quasi-governments, corporates, taxable municipal bonds, foreign agency, supranational, federal agency, and non-U.S. debentures, covered bonds, and residential mortgage pass-throughs.}

^{S&P U.S. Treasury Bond Index: The S&P U.S. Treasury Bond Index is a broad, comprehensive, market-value weighted index that seeks to measure the performance of the U.S. Treasury Bond market.}

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