The month began with a continuation of the upturn that started in the final trading days of October but the positive run was short-lived. After reaching a peak intraday on November 8, the S&P 500 dropped just over 6% in the following few weeks. The selloff could be largely attributed to unexpectedly poor guidance from leading tech companies, a slump in oil prices and continued worries over U.S. – China trade disputes.

 

The third quarter’s earnings season brought about some fears that corporate earnings may have peaked as the effects of the corporate tax cut faded and general concerns over the economy were raised. A glut in oil supply drove prices of the commodity significantly lower, which added to concerns about global economic health and overall market uncertainty. The Federal Reserve was also in focus throughout November as investors searched for information over whether ambiguity during October and November had impacted their policy path. Despite intra-month declines, general market indices did steady and finished the month positive thanks to some more upbeat news concerning U.S. – China trade and investors preparing for the final month of 2018.

 

The trade dispute has impacted Asian markets significantly and with a lack of positive indications, November was no exception. European markets fell in line with the global volatility and had the added uncertainty of Brexit concerns that roiled the British pound in November.