A late-session rally on the final trading day of the month lifted the S&P 500 to a modest 0.2% gain in November, marking its seventh straight monthly increase and continuing its long trend of positive Novembers for the past 15 years.
The only negative November since 2011 was in 2021. Early in the month, equity markets were pressured by a record-long government shutdown, increased concerns of an AI-driven bubble, and stretched valuations in mega-cap technology stocks. However, sentiment shifted dramatically in the final week as expectations for a December rate cut strengthened, fueling the market’s recovery. U.S. Small Caps, as measured by the Russell 2000 index, outperformed their larger cap counterparts as these more interest rate-sensitive companies reacted positively to the sentiment of a December rate cut.
“Reversal” defined November’s performance: leaders over the prior 12 months
lagged, while many former underperformers moved to the top of the leaderboard. Technology and Consumer Discretionary, two of the best-performing sectors over the past year, were among the worst in November. Meanwhile, Materials and Health Care, previously lagging, ranked among the month’s sector leaders. The one sector that defied reversal was Communication Services. It was the only
sector to deliver strong returns in both periods, driven by Alphabet’s (Google) sharp rally following the launch of its Gemini 3 AI model. Similarly, growth has outperformed value for the year, yet value beat growth last month. In fact, the Russell 1000 Value index led the Russell 1000 Growth index by 4.5% in November, the 6th widest monthly value outperformance in 23 years.
International equities took the month to breathe, generating a flat return for November, keeping year-to-date returns just under 30% for 2025. Emerging Markets on the other hand took a step back after a strong 2025, losing -2.25% for November and bringing their 2025 return to 28.6%. Despite trading flat to slightly positive since the end of June, the U.S. Dollar is still one of the most significant cross-asset return drivers for 2025. Being the main driver of international equity returns in the first half of the year, it has taken a back seat in the second half of 2025. International equities continue to remain attractive relative to other asset classes as valuations remain more grounded, dividend yields are still attractive on a relative basis, and the U.S. Dollar continues to remain a potential future tailwind. As deglobalization continues to be a megatrend in 2025 and looking forward, international ex-U.S. companies continue to be beneficiaries of the reshoring being done to sharpen up supply chains.
November was a month of stability and strength for the bond market as the 10-year U.S. Treasury yield traded within a tight range (high of 4.16%, low of 3.99%), ultimately closing at 4.02% – a slight decrease from 4.10% at the end of October. The Bloomberg U.S. Aggregate Bond Index returned 0.6% in November. Year-to-date, the index is up almost 7.5%, positioning it for its strongest annual gain since 2019, when it achieved a 10.8% return. With only 1 month left to go in 2025, bonds are poised to finish out the year as a strong allocation for diversified portfolios.
About Schneider Downs Wealth Management
Schneider Downs Wealth Management has been providing investment and retirement services since 2000. Although our service platforms continue to evolve, commitment to our clients remains our first priority. Our service is tailored to your individualized goals but built on the fundamental principles of our practice: fiduciary guidance, fee transparency and goal-based decision making. To learn more, visit our dedicated Wealth Management page.
Schneider Downs Wealth Management Advisors, LP (SDWMA) is a registered investment adviser with the U.S. Securities and Exchange Commission (SEC). SDWMA provides fee-based investment management services and financial planning services, along with fee-based retirement advisory and consulting services. Material discussed is meant for informational purposes only, and it is not to be construed as investment, tax or legal advice. Please note that individual situations can vary. Therefore, this information should be relied upon when coordinated with individual professional advice. Registration with the SEC does not imply any level of skill or training.
