November lit up Wall Street like a New Year’s Eve party, with U.S. stocks delivering some of their most remarkable gains in recent memory. The S&P 500 soared 5.73%, the Dow Jones Industrial Average jumped 7.54%, and the Nasdaq Composite gained 6.21%.
Both the Dow and S&P 500 hit all-time highs during Friday’s shortened trading session in a triumphant end to a month that was nothing short of historic.
Small-cap stocks stole part of the spotlight, with the Russell 2000 Index skyrocketing over 10%—its biggest monthly gain of the year. Investors leaned heavily into small caps, anticipating that the Trump administration’s promised tax cuts would disproportionately benefit smaller, U.S.-focused businesses.
Stocks saw big gains due to Trump’s win
The markets hate uncertainty, and Donald Trump’s decisive election win provided the clarity investors craved. With the political noise out of the way, traders poured into equities, boosting all major indexes.
Trump’s stock-market-friendly policies—centered on deregulation, lower taxes, and general market enthusiasm—played a massive role in driving November’s record-breaking gains.
The U.S. economy was no slouch in November either. It grew at a 2.8% annualized rate in the third quarter. While the fourth quarter is projected to slow to 1.31%, according to the St. Louis Fed, even that modest growth is enough to keep the recession fears at bay.
Slow growth might actually be a blessing in disguise, giving the Federal Reserve room to cut rates again during its December meeting.
Inflation, meanwhile, held steady. In Europe, annual inflation in the eurozone ticked up to 2.3% from October’s 2%, a manageable number that didn’t deter investors. The pan-European Stoxx 600 Index gained 0.58% on Friday, closing November 0.96% higher.
On the global stage, India’s economic data was kind of a letdown. The country reported disappointing growth numbers, with its GDP expanding by 5.4% in the fiscal quarter ending in September. That’s a steep drop from the previous quarter’s 6.7% and far below the 6.5% predicted by analysts. The Reserve Bank of India’s 7% projection now feels like a far-fetched dream.
Bitcoin’s second-best month of the year
November wasn’t just about traditional markets though. In fact, crypto’s king Bitcoin was the best-performing asset in what was its second-best month in 2024, skyrocketing 38%.
Investors poured into Bitcoin exchange-traded funds (ETFs), which saw their largest single-day inflows during this period. Profit-taking was offset by fresh enthusiasm, especially with the launch of options on Bitcoin ETFs.
At one point, Bitcoin was literally worth over $99,700. It broke so many all-time highs, it was hard to keep count. At press time, it was hovering around $97,000, but expectations of breaking $100,000 this year are sky-high.
Short sellers had a rough month. Many were forced to buy stocks and cryptos to cover their positions as the market climbed, further fueling gains. This year-end rush, combined with seasonal optimism, created a perfect storm for the markets.
Stocks futures trading on Monday suggested a quieter start to December though, with Dow, S&P 500, and Nasdaq futures all dipping slightly in early morning trades.
Investors are now watching for key economic data on manufacturing and construction spending, alongside labor market reports expected later in the week.
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