4 Reasons Why November Will Be Another Volatile Month on Wall Street
With just three trading days left in October, Wall Street’s three major indexes are on track to end the month with heavy losses as surging bond yields and fresh uncertainty surrounding the future path of the Federal Reserve’s interest rates rattled investors.
The Nasdaq Composite is down the most, plunging 4.5% during the month, weighed down by the ‘Magnificent Seven’ group of mega-cap stocks. The tech-heavy index is now officially in correction territory, down more than 10% from its July high.
As a brutal October comes to an end, history says investors should brace for further turmoil in November, which historically is one of the most volatile months of the year for the stock market.
According to research from LPL Financial, there are more 1%-or-larger swings in November in the S&P 500 than in any other month besides October.
Source: LPL Financial
With investors continuing to gauge the outlook for interest rates, the economy, and inflation, a lot will be on the line in the month ahead.
After raising borrowing costs by 525 basis points since March 2022, the Federal Reserve is widely expected to keep interest rates unchanged at the conclusion of its two-day policy meeting at 2:00PM ET on Wednesday, November 1.
As of Friday morning, financial markets see a 99% chance of the central bank holding rates at current levels next week, according to the Investing.com Fed Rate Monitor Tool. That would leave the benchmark Fed funds target range in between 5.25% and 5.50%, which is the highest level since January 2001.
Beyond the expected rate decision, all eyes will be on Fed Chairman Jerome Powell, who will hold what will be a closely watched press conference shortly after the release of the FOMC statement, as investors look for
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