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ETMarkets.comThe S&P 500 has gone some 130 trading days since the last 5% setback ended in April The S&P 500 has delivered a strong performance in 2025, entering its final two months with a gain of about 16%, reflecting one of the best seven-month rallies in recent memory. As of November 1, 2025, the index closed at approximately 6,840 points, recording modest daily gains with a broad market sentiment leaning positive despite some underlying challenges.Strong performance in the technology-heavy Nasdaq and robust earnings from tech giants like Amazon, which posted $180.2 billion in Q3 revenue, have been key drivers of the rally. The S&P 500 gained about 2.3% in October, extending its winning streak to six months—a feat not seen since 2018. The Nasdaq Composite also gained 4.7%, while the Dow Jones Industrial Average rose 2.5% during October.Yet, beneath the surface, the S&P 500 equal-weighted index, which gives all stocks equal influence regardless of size, declined by 1.75% last week. This contrast highlights that gains are concentrated in a handful of mega-cap stocks, creating a divergence in market performance.JP Morgan’s Chief Technical Strategist Jason Hunter pointed out that momentum indicators on both daily and weekly charts are not confirming the new highs on the S&P 500, signaling possible rally fatigue. He noted, “The contrasting performance of the bullishly trending cap-weighted S&P 500 and stagnant, equally weighted S&P 500 Index since mid-summer also helps illustrate the high dispersion within the index and associated crowding in the thin leadership,” reported CNBC. Despite these warnings, similar conditions have persisted with little detrimental impact on the rally thus far.Live EventsThe Federal Reserve’s recent quarter-point rate cut fueled some optimism but hinted at uncertainty over future cuts, causing declines in sensitive sectors such as homebuilders, regional banks, and retail. Additionally, the trade summit with China ended with a lukewarm truce, contributing to cautious sentiment.Within the technology sector, despite strong earnings from the "Magnificent Seven" including Amazon, Meta Platforms’ shares fell 12%, and Microsoft declined 1%, moderating enthusiasm.Looking forward, investors remain optimistic due to easing inflation, steady AI sector growth, and declining rents. However, rising credit risks, specifically commercial real estate delinquencies, and potential shifts in US job growth remain key risks that could curtail further gains.Historically, November tends to be a strong month for stocks, with the S&P 500 averaging gains of 1.8% and positive returns nearly three-quarters of the time. Market participants are closely watching whether this seasonal strength sustains or if broader market leadership expands beyond the largest tech companies.While the S&P 500’s gains in 2025 have been robust, concentrated leadership, technical divergence, and economic uncertainties suggest investors should balance enthusiasm with caution as the year closes.Add as a Reliable and Trusted News Source Add Now! (You can now subscribe to our Economic Times WhatsApp channel) Read More News onS&P 500 2025 performanceS&P 500 gains NovemberNasdaqAmazonDow Jones Industrial AverageJP Morgan’srate cutMicrosoftS&P 500 (Catch all the US News, UK News, Canada News, International Breaking News Events, and Latest News Updates on The Economic Times.) Download The Economic Times News App to get Daily International News Updates....moreless (You can now subscribe to our Economic Times WhatsApp channel)Read More News onS&P 500 2025 performanceS&P 500 gains NovemberNasdaqAmazonDow Jones Industrial AverageJP Morgan’srate cutMicrosoftS&P 500(Catch all the US News, UK News, Canada News, International Breaking News Events, and Latest News Updates on The Economic Times.) Download The Economic Times News App to get Daily International News Updates....moreless Explore More Stories123
