Dow ends volatile November with more than 150-point rally on hopes of a US-China trade deal at G-20

Friday also marked the last trading day of November. This month was a volatile one for Wall Street as investors grappled with trade worries as well as fears the Federal Reserve would tighten monetary policy faster than expected. Fed fears were eased slightly this week after Chairman Jerome Powell said rates were “just below” their neutral level, hinting at fewer hikes down the road.

The S&P 500 closed November with a 1.8 percent gain, while the Dow rose 1.7 percent. The Nasdaq Composite, meanwhile, eked out a 0.3 percent gain.

Heading into December, however, stocks could be in for more volatility, said Bruce Bittles, chief investment strategist at Baird.

“We do not have evidence that a meaningful cyclical low is in place, and the character of any rally attempts that do emerge will be watch closely,” Bittles said in a note. He added, however, stocks have historically done well in December.

“December has a well-known history as being a strong month of the year for stocks,” Bittles said. “In fact, it is the strongest month of the year for U.S. stocks on an absolute basis. Stocks have rallied over the course of the month about three quarters of the time.”

The Dow also registered its biggest one-week rise since November 2016, climbing 5.16 percent. The S&P 500, meanwhile, rose 4.85 percent this week in its best weekly performance since 2011.

Shares of World Wrestling Entertainment closed 2.6 percent higher after J.P. Morgan Chase upgraded them to overweight from netural, noting the company’s valuation is attractive compared to industry peers.

Ryan Browne
contributed to this report.

Source: CNBC