Monthly Market Update for November 2024
Key Points – Monthly Market Update for November 2024
- A Smaller Rate Cut from the Fed
- S. Large-Cap Stocks Rebound
- Developed International and Emerging Markets Post Negative Returns
- 10-Year Treasury Note Yield Ends November at Just Under 4.2%
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Monthly Market Update for November 2024
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Federal Reserve Continues Rate Cutting Cycle
Back in September, the Fed began their interest rate cutting cycle by lowering the Fed Funds target range by half a percentage point. Despite a recent uptick in inflation, the Fed cut interest rates again during their November 7 meeting, but this time by only a quarter percentage point.1
FIGURE 1 – Fed Watching – Federal Reserve
The target rate is now 4.5% to 4.75%, and there is one FOMC meeting left this year, which will take place on December 18. The market is currently anticipating an additional quarter percentage point cut to be announced.2
S&P 500 Surges in November
U.S. Large-Cap stocks rebounded in November to log their largest monthly gain of 2024 and bolstered their year-to-date return.3 Against a backdrop of decisive U.S. election results, generally healthy economic data, and mixed third-quarter earnings, the S&P 500 Index rallied nearly 6% for the month. This performance pushed the index’s year-to-date return to over 28%.
FIGURE 2 – November Best Month So Far – Morningstar Direct
International Stocks Tumble
Non-U.S. stocks lagged their U.S. counterparts with both Developed International and Emerging Markets posting negative returns for November.4 This has further exacerbated the performance divergence between U.S. and non-U.S. equity markets that we’ve seen so far this year.
FIGURE 3 – Difficult Month for International Stocks – Morningstar Direct
What’s Going on with the 10-Year Treasury Note Yield?
Turning to the bond market, after a momentous rise from the September lows, the yield on the 10-year Treasury note declined and ended November at just under 4.2%.5 This modest decline was a tailwind for the U.S. bond market, which bounced back from their October decline to deliver a solid monthly gain.
FIGURE 4 – 10-Year Treasury Rates Move Lower – Koyfin
Next month, Neal Falkenberry, CFA will join me for our Q4 2024 Quarterly Market Update. Subscribe to the Modern Wealth Management YouTube channel so you don’t miss it. If you have any questions about what I covered in our Monthly Market Update for November 2024 and what it could mean for you, start a conversation with our team below.
Resources Mentioned in This Article
Other Sources
[1] https://fred.stlouisfed.org/series/DFEDTARU
[2] https://www.forbes.com/sites/simonmoore/2024/12/03/fed-leans-toward-a-december-interest-rate-cut/
[4] https://www.morningstar.com/etfs/arcx/efa/performance
[5] https://app.koyfin.com/gyld
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