November was a great one for long-term investors in U.S. stocks—essentially the polar opposite of October. 

Yes, the seasonal pattern for U.S. equities is strong at this time of year!

Historically, November and December are a strong time of year for U.S. equities. After October’s dismal showing for U.S. stock indexes, market watchers are debating the opportunities in stocks for the remainder of the year.

Overall, stock market bulls were on the retreat during the third quarter of 2023 as several major stock indexes traded lower in response to rising interest rates and a strong dollar.

In fact, after three consecutive positive quarters for the S&P 500, the large-cap index found some sellers in the third quarter.

Major U.S. stock indexes declined in September, with rising bond yields and a looming government shutdown serving as catalysts. More on that in a minute.

After a strong July, major U.S. equity indexes retreated slightly yet remained resilient in August. Treasury yields captured the market’s attention for much of the month.

Let’s make it three for the S&P! The second quarter of 2023 was the third consecutive positive quarter for the S&P 500 and the Dow Jones Industrial Average. The Nasdaq 100 was the biggest gainer of the three major indexes in the second quarter, with AI and large-cap tech fueling gains.

The recent market rally showed signs of broadening throughout July, with underappreciated sectors like industrials and transports filling the shopping lists of eager bulls.

If a trader or investor was trying to time the market in March during the regional banking panic, they more than likely would not have participated in the gains we just saw in June! Long-term investors stay the course with discipline.

Stock prices stumbled in February owing to growing worries that the Fed would maintain its tight monetary posture in the face of continuing inflation.