The major averages concluded the year’s best week, which led to a small increase in U.S. market futures on Monday.
The Dow Jones Industrial Average futures saw an increase of 27 points, or 0.1%. Futures for the Nasdaq-100 and the S&P 500 both increased by 0.2%.
A positive note was also struck to start November trading, with all of the major averages coming off of their best weeks of the year. With its largest weekly gain since October 2022, the Dow finished the week up 5.07%. During that period, the Nasdaq Composite increased 6.6% while the S&P gained 5.85%. Overall, both indexes had their best week since November 2022.
Buyers have returned to the market due to “oversold circumstances, excellent results, expectation for an end to the Federal Reserve’s rate-hiking campaign, and a big decline in interest rates,” according to Adam Turnquist of LPL Financial.
Bond yields declined as a result of a weak monthly jobs data, which also helped stocks.
Seasonal tailwinds may aid in the stock market’s comeback even if the coming week will be short on economic data and company profits. The Stock Traders’ Almanack states that November is the S&P 500’s best-performing month. Turnquist also pointed out that it marks the beginning of the market’s strongest six-month return period since 1950. Since then, he added, the S&P 500 has returned 7% on average. This was from November through April.
Source (CNBC)
