"Stocks Surge in November, Bulls Predict 'Santa Rally' as Fed Holds Rates Steady"

Stock-market bulls are optimistic about a potential year-end rally as a four-day surge in equities, accompanied by declining bond yields, helps alleviate the recent market corrections. The Dow Jones Industrial Average, S&P 500, and Nasdaq Composite all experienced significant gains, with the Dow and S&P 500 on track for their strongest weekly performance of 2023. The retreat in Treasury yields, accelerated by the Federal Reserve's decision to keep rates unchanged, further boosted market sentiment. However, skeptics warn that macro concerns and geopolitical risks could still impact the markets, and it may be premature for investors to become overly optimistic. Nonetheless, the economy is performing well, and the likelihood of inflation subsiding without further tightening from the Fed is increasing. The term "Santa rally" refers to the market's tendency to rise in the final days of the year, and market economist Ed Yardeni suggests being overweight in tech, energy, and financials.