US stocks head into holiday week with history on their side
US stocks typically perform well during the Thanksgiving week, with historical data showing that the S&P 500 has finished higher 60% of the time since 1928, and even more frequently during presidential election years at 75%. As the markets approach a shortened trading week due to the holiday, the S&P 500 and Nasdaq Composite are both up close to 5% for November. The Nasdaq ended Thanksgiving week in 2023 with a 2.4% increase, contributing to a strong month overall. Stock market movements have been relatively insulated from recent comments by President-elect Donald Trump regarding tariffs, indicating cautious investor sentiment ahead of more definitive policies post-Inauguration Day. The upcoming economic reports, including jobless claims and the Personal Consumption Expenditures index, are expected to impact market expectations for an anticipated interest rate cut from the Federal Reserve in December. With only a brief trading week remaining, there is cautious optimism for continued upward momentum in stock performance this November.
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