November 2025 was marked by calm on the surface but revealed complexities beneath. The U.S. markets experienced fluctuating sentiments as AI enthusiasm met earnings reality. Meanwhile, the Federal Reserve's stance on rate cuts and a government shutdown left investors with less economic data than usual.

Shifts in Major U.S. Stock Indices

The month saw varied performances among major indices. The S&P 500 edged up by 0.13%, while the Nasdaq 100 declined by 1.64%, and the Dow Jones gained 0.32%. Sharp rotations in AI and tech sectors were a key feature of this period, with renewed hopes for Fed policy easing providing a late-month lift.

Government Impact and Fed Policy

The extended federal shutdown wiped out significant data updates, leaving investors and policymakers operating with minimal guidance. Fed officials had a substantial influence on market expectations, with divergent views within the Federal Open Market Committee (FOMC) adding to the uncertainty. Vice Chair Philip Jefferson and Governor Christopher Waller expressed differing perspectives on approaching rate cuts.

Housing Market Trends

The housing market maintained a steady 4.1 million annual sales pace in October, with national prices showing modest year-over-year growth. However, regional divergence persisted, with gains in some states offset by declines in others. High prices and low inventory continue to challenge younger buyers, favoring those with established equity.

Looking Ahead

As we move forward, balancing diversification and risk management remains crucial in navigating market uncertainties. The upcoming Fed meeting and advances in AI sectors continue to hold significant weight in shaping economic forecasts. As always, we're here to help guide you with personalized insights and support.