Market Recap: Stocks End November on a Positive Note Amid Fed Speculation

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U.S. stocks wrapped up both the week and the month on firmer ground, bolstered by a post-Thanksgiving rally and growing investor confidence in a potential December rate cut. On Friday, the S&P 500 rose 0.5%, the Nasdaq gained 0.8%, and the Dow climbed 0.6%, reflecting a broad-based improvement in sentiment. Market participants leaned into the idea that the Federal Reserve could pivot toward a more dovish stance before year-end, with odds for a December rate cut now hovering around 80–85%.
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Despite the upbeat tone, the week wasn't without turbulence. A cooling failure at a CME data center temporarily froze U.S. futures, injecting a dose of intraday volatility. Still, the overall tone remained constructive as traders appeared willing to embrace risk heading into December.

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Sector Highlights: Tech and Consumer Discretionary Lead

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The rally was strongest in growth-oriented sectors. Consumer Discretionary surged 4.86% for the week, followed closely by Technology with a 4.77% gain. Megacap tech stocks rebounded from recent weakness, boosting overall sector performance.
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Other sectors saw respectable moves as well. Materials, Financials, and Communication Services all posted gains in the 3% range. Defensive sectors lagged but still ended in positive territory: Industrials, Health Care, and Utilities each rose between 1.9% and 2.8%. Meanwhile, Consumer Staples and Real Estate added less than 2%, and Energy was the weakest link, gaining just 1.15%.

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Big Tech Mixed: Nvidia Slips as Others Recover

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Large-cap technology names ended the week with mixed performance. Microsoft gained 1.3%, Amazon added 1.8%, and Meta climbed 2.3%. Broadcom rose 1.4% while Tesla inched up by 0.8%. However, Nvidia slipped 1.8%, and Alphabet was flat for the week.
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The divergence highlighted a reassessment of valuations—particularly in AI-driven stocks—as some investors questioned whether recent gains had run too far ahead of fundamentals.

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Monthly Performance: Nasdaq Breaks Seven-Month Streak

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For November as a whole, the Dow finished with a modest gain of 0.3%, and the S&P 500 held relatively flat. The Nasdaq, however, fell 1.6%, snapping a seven-month winning streak. The tech-heavy index’s decline reflected a broader recalibration of risk as investors digested elevated AI valuations and looked for signs of sustained earnings momentum.
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The slight pullback in the Nasdaq came as traders weighed macro crosswinds: still-elevated borrowing costs, shifting inflation data, and an uncertain policy path from the Fed. All eyes now turn to the central bank’s next move, with the December meeting potentially setting the tone for early 2026.