Equity markets modestly rose in November despite broad weakness in the technology
sector including among several leading AI related issues which took a pause after torrid
gains achieved through the year. The slight equity market advance for the month was
encouraging as it was achieved against a backdrop of mixed economic signals and
heightened volatility as well as weakness in the tech sector including talk of a potential
AI bubble. The U.S. economy showed signs of cooling in November, with consumer
spending softening and labor demand easing, as reflected in the Federal Reserve’s Beige
Book, which noted modest declines in employment and cautious hiring amid tariff-related
cost pressures reinforcing expectations that the Fed may cut rates again in December to
support economic growth.