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As of early November 2023, the S&P 500 has declined approximately 3%, while the NASDAQ experienced a 5% drop, raising concerns about ending the month in negative territory. Historically, November has posted positive returns 74% of the time over the past 20 years, averaging a 2.2% gain, making this downturn notable.
Despite the recent end of the federal government shutdown, Wall Street’s response has been muted, with a sideways trend in stock trading. The market has been affected by chaotic trading patterns linked to AI-related stocks, particularly after a rough start to November. Notably, 92% of S&P 500 companies have reported quarterly results, with 82% exceeding analysts’ estimates, indicating overall earnings growth of 13.1% across the index.
Looking ahead, there are predictions of potential seasonal market strength as Thanksgiving approaches, which may boost investor sentiment. This comes against a backdrop of significant investor trepidation, despite strong earnings, leading to careful positioning in the stock market as volatility continues.
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