US stocks rise for a fifth straight day to close out a volatile month

Market Performance - The S&P 500 rose 0.5% on the last trading day of November, closing the month with a slight gain of 0.1% [1] - The Dow Jones Industrial Average increased by 289 points, or 0.6%, while the Nasdaq gained 0.7% but ended November with a 1.5% decline due to losses in major tech stocks [1] Tech Sector Dynamics - Mid-month, stocks experienced a downturn as concerns grew over the high valuations of AI-driven companies like Nvidia, which lost 1.8% on the last trading day and ended the month with a double-digit loss [2] - Oracle's stock fell 23% in November, and Palantir Technologies dropped 16% [2] - Conversely, Alphabet saw a nearly 14% increase in its stock price, driven by excitement surrounding its new Gemini AI model [2] Federal Reserve Outlook - Market optimism was fueled by expectations that the Federal Reserve may cut interest rates at its upcoming meeting on December 10, with traders estimating a nearly 87% probability of a rate cut [3] - The Fed has already cut rates twice this year to support a slowing job market, but faces challenges as inflation rises [4] Retail Sector Insights - Retail stocks were under scrutiny as investors awaited consumer behavior during the Black Friday sales, with Macy's down 0.3% and Kohl's up 1.4% [5] - Specialty retailers like Abercrombie & Fitch and American Eagle Outfitters saw gains of 2.9% and 0.7%, respectively [5] Other Sector Movements - Amidst tech stock volatility, pharmaceutical companies like Eli Lilly and Merck each rose over 20% for the month [6] - Travel-related companies such as Marriott and Expedia also reported strong monthly gains [6]