Stocks Rally in November on Cooling Inflation and Hopes of Soft Landing
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The US stock market rebounded in November, with the S&P 500 jumping 9% and the Nasdaq gaining 10.7% for their best monthly performance this year.
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Stocks rallied on hopes that cooling inflation means the Fed will stop raising rates soon and achieve a soft economic landing.
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The rally was broad-based across sectors, unlike earlier gains this year driven just by mega-cap tech names.
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Year-end seasonal trends of a "Santa Claus rally" could give stocks a further boost through early January.
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However, some warn a recession still poses risks in 2023-2024 if rate cuts come too soon.