Equities Steady in the Final Week of November

US equities traded in a narrow but constructive range during the week ending 28 November 2025, supported by light post-holiday volumes and continued optimism around the disinflation trend. While activity was muted due to the Thanksgiving holiday, major indices remained close to their recent highs, reflecting a steady macro backdrop and firm corporate fundamentals.

November Marked by Moderating Inflation and Stable Risk Appetite

Across the broader month of November, US markets delivered modest gains. Softer inflation readings early in the month helped anchor expectations that the Federal Reserve is on track to begin easing monetary policy in 2026. Treasury yields drifted lower through most of November, providing valuation support—particularly for growth-oriented sectors. corporate earnings revisions remained stable, and economic data continued to signal a soft-landing dynamic: cooling but not contracting.

Despite the constructive tone, leadership remained uneven, with technology outperforming while more cyclical areas lagged until rotation picked up in the second half of the month.

Bond Yields Edge Lower on Reinforced Disinflation

During the final week of November, Treasury yields eased marginally as markets digested additional data confirming that both goods and services inflation continued to moderate. The 10-year yield tested its monthly lows, driven by expectations that policy rates have likely peaked for this cycle.

Credit markets remained well-anchored, with investment-grade spreads stable and high-yield spreads showing little sign of stress. Demand for quality bonds persisted as investors positioned ahead of potential monetary easing next year.

Corporate Signals Remain Supportive

Corporate newsflow during the week was constructive, particularly from consumer and technology companies that highlighted a resilient start to the holiday spending season. Early indications pointed to steady demand across key retail categories, while supply-chain conditions remained favourable compared to prior years.

Technology names continued to benefit from strong enterprise spending on AI infrastructure and cloud services. Industrials also saw increased attention as investors grew more optimistic about a potential recovery in manufacturing activity heading into 2026.

Sector Performance Shows Gradual Broadening

Technology and communication services remained the strongest sectors for the week, helped by easing yields and firm earnings expectations.

At the same time, signs of rotation persisted:

• Financials gained as the yield curve stabilised and credit conditions showed early signs of improvement.
• Industrials benefited from improving order data.
• Consumer discretionary was supported by early holiday spending strength.
• Defensive sectors such as healthcare and utilities traded largely sideways amid the quieter trading environment.

Macro Environment: Steady Data Reinforces Soft-Landing View

The limited set of economic releases during the week pointed to an economy that continues to cool gradually without slipping into contraction. Jobless claims remained contained, consumer confidence held broadly stable, and business surveys showed incremental improvement. Fed communication remained consistent: while inflation progress is encouraging, policy easing will remain dependent on sustained evidence of price stability.

Key Takeaway

As of 28 November 2025, US markets remained firm, supported by a month of moderating inflation, easing bond yields, and stable corporate fundamentals. November’s performance reflected a constructive but selective risk environment, with investors balancing optimism around a 2026 policy pivot against valuation considerations and pockets of economic uncertainty.