A bird was on the table for many toward the end of the month. The financial markets plated something nice in November, too – allowing investors to talk turkey in a favorable way.
Two economic reports released in November helped stocks and bonds take flight.
At the beginning of the month, the Labor Department’s regular monthly update on the jobs market showed signs of cooling. Less demand in the labor market suggests an easing of upward pressure on wages and points to the possibility of more modest price increases for goods and services.
The October inflation report, released November 14, provided another positive catalyst for both stocks and bonds. Consumer prices rose 3.2% in the year through October, decelerating from the previous month and showing encouraging signs under the surface.
Inflation has come down meaningfully over the past year after hitting a peak in the summer of 2022. The consumer price report provided further evidence that inflation is headed in the right direction.
In November, the S&P 500 Index of large company US stocks had its highest monthly return in 2023, rising by 9.1%. Foreign stocks also participated in the celebration, with the MSCI EAFE Index rising by 8.2%. Bonds realized their best monthly gain since 1985, as the Bloomberg US Aggregate bond index returned 4.6%.
Year-to-date, US stocks gained 20.7% through the end of November, and foreign stocks have returned 12.4%. Bonds have staged a comeback and were in the black a week before Black Friday. Through the end of November bonds had returned 1.9% year-to-date.
RK
