CONVEX
Monthly Recap

Election rally: S&P +5.7%, small caps lead on Trump win

November 2024
Policy regime changeSmall-cap resurgenceBitcoin all-time highDecisive election resolution

Monthly Performance

AssetCloseChange
S&P 500 (SPY)602.55+5.73%
Nasdaq 100 (QQQ)509.95+5.24%
Russell 2000 (IWM)241.37+10.58%
20Y+ Treasury (TLT)92.51+2.34%
DXY105.74+1.94%
Gold2643.20-3.70%
VIX13.51-22.30%
Bitcoin94,930+37.30%

Macro Dashboard

IndicatorMonth-endvs. priorvs. YoY
Recession probability (CVRP)39.00−4.00−3.00
10Y Treasury yield4.18%−0.10pp−0.19pp
2s10s spread5bps−7bps+41bps
VIX13.51−9.65+0.59
HY credit spread274bps−14bps−110bps
CPI (headline, YoY %)2.72%
Unemployment rate4.20%+0.10pp+0.50pp
WTI crude$68.26−$1.32−$7.40

Values captured at month-end (last available daily observation). Sources: FRED (rates, credit, commodities, labor), BLS (CPI), Convex proprietary indices (CVRP).

What Happened

November 2024 was defined by the presidential election and the decisive post-election rally. The week of November 4-8 delivered the majority of the monthly gain: S&P 500 +4.7%, small caps +8.6%, Bitcoin +12% on the Trump victory and clean Republican sweep. Markets quickly repriced deregulation expectations, tariff uncertainty (positive for domestic producers), and the policy regime change. The November 7 FOMC delivered 25 bp cut on schedule, providing additional tailwind.

Mid-month consolidation was orderly. The S&P 500 traded in a narrow range through November 15-22 as markets digested the election outcome and positioned for year-end. Thanksgiving week saw typical low-volume drift higher. The November 27 PCE print at 2.3% core was in-line, maintaining the Fed's glide path to continued cuts.

The month's cross-asset story reflected the policy regime reset. The dollar strengthened (DXY +1.9%) on growth divergence expectations. The 10Y yield declined modestly to 4.17% as cyclical narrative moderated. Bitcoin closed at $95,000, up 37% on the month, a historic gain driven by crypto-friendly Trump administration expectations and spot ETF inflows. Small caps outperformed large by 3 percentage points. Sector rotation saw financials (+10%) and industrials (+8%) lead.

Key Dates

2024-11-05
Trump wins presidential election
2024-11-07
Fed cuts 25 bps to 4.50-4.75%
2024-11-13
October CPI 2.6%, in-line
2024-11-27
October PCE 2.3% core, in-line

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Monthly recaps land in your inbox the first trading day of each month. Written by the research desk.