Traders were active on the floor of the New York Stock Exchange (NYSE) in New York City as the U.S. stock market observed a closure for Thanksgiving Day on Thursday. Trading will resume on Friday, but only until 1 p.m. ET.
Recent calculations indicate that major U.S. indexes are likely to conclude November on a downward note. As of the market’s close on Wednesday, the S&P 500 was down by 0.4% for the month, while the Dow Jones Industrial Average fell by 0.29%. The Nasdaq Composite suffered the most, declining by 2.15%, primarily due to a slump in technology stocks throughout the month.
The upcoming abbreviated trading session on Friday could lead to a significant shift; however, analysts caution that a surge in stock prices might raise further concerns regarding the market’s long-term sustainability. Currently, the S&P 500 and the Dow Jones Industrial Average have experienced six months of consecutive gains, while the Nasdaq Composite has seen a winning streak of seven months.
November’s performance diverges sharply from historical trends, where the S&P 500 has typically risen by an average of 1.8% since 1950 during this month. Moreover, following a U.S. presidential election, the market usually sees an increase of about 1.6%. However, this year’s post-presidential election environment is proving to be anything but traditional, making future market movements more unpredictable.
Despite recent trends suggesting a potential dip, there remains an opportunity for a market rebound in the coming months. Investors may find hope in the historical resilience of the stock market, which has often overcome downturns to achieve recovery over time.