November closed with a bang for the stock market, as the S&P 500 delivered its best monthly performance since November 2023, despite unsettling political pronouncements from President-elect Donald J. Trump. The benchmark index surged 5.7% for the month, propelled by investor optimism over proposed tax cuts and regulatory easing.
The month wasn’t without turbulence. Earlier in the week, markets briefly retreated following Mr. Trump’s announcement of aggressive tariffs: a 25% levy on Canadian and Mexican imports and a 10% tariff on Chinese goods, aimed at curbing drug inflows and illegal immigration. Protests from the affected nations were swift, but investors quickly shrugged off the geopolitical noise. By Friday’s close, the S&P 500 had risen 0.6%, reaching a record high of 6,032.38, according to FactSet.
This momentum added to an already stellar year for the index, which has climbed 26.5% year-to-date and 32.6% over the past 12 months—impressive returns by any standard.
Bond and Sector Highlights
Bond markets also saw movement in November, though in the opposite direction. Yields on the 10-year Treasury note dipped below 4.2% after earlier gains, reflecting tempered inflation concerns and optimism over economic stability.
The month’s biggest stock performer was Palantir, which soared over 60% on the strength of its earnings and growing reputation as a military AI contractor. On the other hand, Celanese suffered a 42% loss, weighed down by disappointing earnings and warnings of sustained demand weakness in core business segments.
Global Markets and the European Picture
Across the Atlantic, the STOXX 600 index posted its first monthly gain since May, bolstered by speculation of a quarter-point interest rate cut by the European Central Bank in December. However, not all European markets shared the same fortune. France’s CAC 40 fell 2.3% for the month as political and fiscal crises heightened investor concerns. Rising French bond yields reflected mounting anxiety over the country’s fiscal outlook.
A Bullish Year Ahead?
As December begins, the market’s performance signals continued investor confidence in the incoming administration’s pro-business policies, despite the uncertainties posed by protectionist rhetoric. With the S&P 500 riding high and global markets cautiously optimistic, the final weeks of 2024 will reveal whether this momentum can sustain into the new year. For now, November has secured its place as a standout month in a year of sizzling returns.