The Monthly Market Wrap provides an insightful analysis of treasury yields, fixed income performance, mega-cap stocks, and key economic indicators in November 2024. It also delves into housing market data and the performance of commodities.
Key Stock Market Index Performance
Equities rallied in November following the 2024 presidential election. The Dow Jones Industrial Average surged 7.7%, the Nasdaq Composite added 6.3%, and the S&P 500 advanced 5.9%. Certain ex-U.S. markets weren’t as upbeat about the conclusion of the election, as Emerging Markets fell 3.6% and Developed Markets slipped 0.6%.
All eleven sectors finished November in the black. Consumer Discretionary and Financials were both up double digits, rising 12.9% and 10.5%, respectively.
Economic Data
Employment
The unemployment rate remained unchanged at 4.1% between September and October, while the labor force participation rate fell 0.1 percentage points to 62.6%. October nonfarm payroll data showed that the U.S. economy added just 12,000 jobs this month, partially due to the recent hurricanes and dockworker strike. This was the lowest monthly jobs figure since December 2020 and well below the expected increase of 100,000.
Inflation vs. Fed Funds Rate
The U.S. inflation rate rose to 2.6%, ending a streak of sixth straight monthly declines. Core inflation came in at 3.33% for October. The U.S. Consumer Price Index rose 0.24% month over month, and U.S. Personal Spending increased by 0.36%.
The Federal Reserve cut its key Fed Funds Rate by 25 basis points at the FOMC’s November 7th meeting. This lowered the Fed Funds Rate down to 4.50%-4.75% from 4.75%-5.00%, and marks the second rate cut since March 2020.
Housing Prices and Mortgage Rates
Existing Home Sales increased 3.4% MoM. The Median Sales Price of Existing Homes remained relatively unchanged month over month, as did mortgage rates. The 15-year Mortgage Rate ended November at 6.10% while the 30-year settled at 6.81%.
U.S. New Single-Family Home Sales plummeted 17.3% MoM in October, the largest monthly decline since July 2013.
Bitcoin Soars Near $100K
Cryptocurrency prices soared in November: the price of Bitcoin jumped 34.7% to $97,453.25, and came close to the key $100,000 threshold. Ethereum advanced 35.4% in November to $3,598.19. These significant single-month gains helped propel Bitcoin and Ethereum’s year-to-date totals. Bitcoin is now 130.8% higher on the year, and Ethereum is up 56.8% in 2024.
Fixed Income
Treasury yield activity was rather muted in November. The 20-year experienced the largest move, falling 13 basis points.
Several bond funds managed price appreciation despite the relatively quiet activity in yield movement. The iShares 20+ Year Treasury Bond ETF (TLT) rose 2% in November, and the iShares iBoxx Investment Grade Corporate Bond ETF (LQD) advanced 1.8%.
Bautis Financial LLC is a registered investment advisor. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial advisor and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance.