Executive Summary 

• The return of volatility reveals strength in equities, not weakness
• White House issues executive order “Launching the Genesis Mission”
• Precious metals continue historic pace as silver breaks out to new high
• Crude oil declined for fourth consecutive month nearing four-year low
• Sector rotation benefits healthcare, regional banks, homebuilders, and transports

November was a volatile month for U.S. equities with the S&P 500 declining 5.7% from its October high, measuring its largest retracement since April. However, the flagship index rebounded sharply into the month-end, eked out a modest 0.2% gain, and extended its winning streak to seven months. In a sign of broadening strength, the S&P Midcap 400 and S&P 500 equal weight indices outperformed with gains of 2% and 1.9%, respectively. The Nasdaq 100 underperformed and broke its seven-month streak of gains driven by profit taking within the high-flying technology sector.

The month’s key themes revolved around shifting expectations for Federal Reserve policy, intensifying scrutiny of AI-related spending, technical-driven volatility, and a White House press release announcing a national initiative to accelerate scientific discovery through AI. Early hawkish commentary and October FOMC minutes pushed December rate-cut odds below 30%, but dovish remarks later in the month reversed sentiment, lifting odds above 80% by month-end. The technology space experienced a relatively modest correction as investors reassessed valuations in AI-related infrastructure following an extended period of strong performance. This recalibration reflects healthy market dynamics rather than structural weakness, as long-term fundamentals for AI adoption remain intact. Technical factors such as crowded momentum trades and liquidity deterioration amplified volatility, driving sharp rotations into previously underperforming industries like healthcare, homebuilders, airlines, regional banks, and transports.

On Nov. 24, 2025, the White House issued an executive order, “Launching the Genesis Mission,” announcing a large-scale national initiative to accelerate scientific discovery through artificial intelligence (AI). Led by the Department of Energy, it will create an integrated AI platform — the American Science and Security Platform — combining high-performance computing, secure datasets, and AI foundation models to automate research and drive breakthroughs in critical areas such as advanced manufacturing, biotechnology, energy, semiconductors, and quantum science. The program aims to strengthen U.S. technological leadership, enhance national security, boost productivity, and foster public-private partnerships, positioning America at the forefront of global AI innovation.

Amid these crosscurrents, the fundamental backdrop remained supportive. Q3 earnings growth came in at approximately 13.5%, well above expectations, with an 83% beat rate. AI demand continues to show strength. Overall, while November featured significant swings and thematic volatility, the bullish narrative of solid earnings, favorable seasonality, and strong macro conditions largely stayed intact.

Sector Performance

Large-cap sector performance was highly uneven, albeit eight of 11 groups finished higher. Technology (-4.3%) led declines amid heightened scrutiny of AI spending, momentum unwinds, and profit taking; however, the sector remains nearly 70% above its April low. Healthcare (+9.3%) was the standout sector with its best monthly performance in three years while reaching new all-time highs. The monthly MACD indicator (measure of momentum; lower panel) for the S&P 500 Healthcare Index registered a bullish cross signaling a positive trend change in its long-term momentum.