The S&P 500 Just Had 1 of Its Best Months in History. Here's What the Stock Market Usually Does Next
The S 500 (SNPINDEX: ^GSPC) tracks 500 large U.S. companies that span every stock market sector, covering about 80% of domestic equities by value. As a result, the index is commonly used as a barometer for the entire U.S. stock market, though the Dow Jones Industrial Average (DJINDICES: ^DJI) and the Nasdaq Composite (NASDAQINDEX: ^IXIC) are also widely followed benchmarks.
The S 500 posted three consecutive monthly declines in August, September, and October, something it last did following the onset of the COVID-19 pandemic in 2020. Those losses came in response to stubborn inflation, soaring bond yields, geopolitical tensions, and projections from the Federal Reserve pointing toward a prolonged period of elevated interest rates.
However, the S 500 rebounded 8.9% in November, one of its 20 best monthly performances in history, as investors reacted to better-than-expected earnings and encouraging economic data. Specifically, reports showed that inflation and the labor market continued to cool in October, fueling hopes that the Federal Reserve may be done raising interest rates. That leaves the door open for rate cuts next year, which would likely act as an accelerant on the economy.
Source Fool.com
