Monthly market commentary:

Global equities, as measured by the MSCI ACWI Index, were virtually flat in November 2025. Investors’ concerns about signs of slowing global economic growth and persistent inflation, as well as stretched valuations in the technology sector, particularly for artificial intelligence (AI)-related companies, offset optimism regarding relatively strong corporate earnings. Developed markets outperformed emerging markets for the month.

Europe was the strongest-performing region among the developed markets in November, bolstered by strength in Ireland, Belgium, and Switzerland. In contrast, the underperformance of both the Asia-Pacific ex Japan and Pacific regions resulted from a market downturn in Australia. The Far East region also lagged due to weakness in Japan. Latin America led the emerging markets in November due primarily to upturns in Chile, Brazil, and Colombia. Additionally, Europe benefited from strength in Hungary and Greece. The Gulf Cooperation Council (GCC) countries were the most notable laggards for the month, attributable mainly to market slumps in Saudi Arabia and the United Arab Emirates (UAE). The Far East also recorded a negative return for the month due to declines in Korea and Taiwan.1

Global fixed-income assets, as represented by the Bloomberg Global Aggregate Bond Index, edged up 0.2% (in U.S. dollars) in November. Mortgage-backed securities (MBS) led the U.S. fixed-income market, followed by U.S. Treasurys, high-yield bonds, and investment-grade corporate bonds. Treasury yields moved lower across the yield curve. Yields on 2-, 3-, 5-, and 10-year Treasury notes declined by corresponding margins of 0.13%, 0.11%, 0.12%, and 0.09%, ending the month at 3.47%, 3.49%, 3.59%, and 4.02%, respectively. The 10-year to 3-month yield curve narrowed by 8 basis points (0.08%) to +0.14% as of the November 28, the final trading day of the month.2

Global commodity prices, as measured by the Bloomberg Commodity Index, climbed 3.2% in November. The spot prices for West Texas Intermediate (WTI) and Brent crude oil fell 4.0% and 2.8%, respectively, over the month due to a proposed peace plan for the Russia-Ukraine conflict, which could increase exports from Russia, as well as softer demand. The 6.5% rise in the gold price in November resulted from increasing expectations of a Federal Reserve (Fed) interest-rate cut at its December meeting, along with sticky inflation and U.S. dollar weakness. (The gold price typically moves inversely to the U.S. dollar.) The New York Mercantile Exchange (NYMEX) natural gas price surged 11.0% during the month, benefiting from an anticipated increase in demand due to colder weather in the Midwestern and Eastern regions of the U.S., as well as a significant rise in U.S. liquefied natural gas (LNG) exports. The 0.8% upturn in the wheat price in November was attributable to the ongoing disruption of Black Sea wheat exports caused by the Russia-Ukraine war, along with weather-related issues, including heavy rain in China, and dry conditions in Southeast Europe, Australia, and the U.S.

On November 12, President Donald Trump signed a spending package to reopen the federal government after a 43-day shutdown—the longest in U.S. history— after the House of Representatives and Senate passed the legislation by votes of 222-209 and 60-40, respectively. The political dispute centered on the demand of the Democrats, who are the minority party in both houses of Congress, for an extension of the enhanced Affordable Care Act (ACA) health insurance subsidies enacted during the COVID-19 pandemic in 2021, and to restore the cuts to the Medicaid program mandated in the One Big Beautiful Bill Act, which Trump signed into law in July.

The agreement funds the government through January 30, 2026; provides full funding through the end of the fiscal year on September 30 for the Department of Agriculture, the legislative branch, and military construction; and guarantees the rehiring of furloughed workers and back pay for all federal employees. Furthermore, though the bill does not extend the ACA subsidies, the Senate pledged to hold a vote on the issue by mid-December.

There was an unexpected development regarding U.S. trade policy mid-month. The Trump administration reversed several tariffs that were previously imposed on food imports in an effort to cut costs for both consumers and businesses, and ease inflationary pressures in the food sector. The lower tariffs, which were applied retroactively to November 13, include beef, coffee, and more than 100 agricultural and food products. The lower levies apply to imports from all countries—not just those with trade deals. Several U.S.-based businesses have challenged the legality of the tariffs to the U.S. Supreme Court, which could issue a decision on the matter some time in December.

On the geopolitical front, in late November, the Trump administration announced a plan to end the Russia-Ukraine war, which began in February 2022. The plan would provide limited security guarantees for Ukraine, excluding direct military assistance. However, Ukraine would be required to cede the eastern Donbas region to Russia and accept Russia’s control over other contested regions. Additionally, the plan would limit Ukraine’s military forces to 600,000 members and bans Ukraine from joining the North Atlantic Treaty Organization (NATO), which provides security for its member nations.

Under the proposal, the U.S. would recognize Russia’s claims to certain Ukrainian territories; discuss the possibility of Russia rejoining the G8 (an intergovernmental organization comprising the world’s largest developed economies: France, Germany, Italy, Japan, the U.S., the U.K., Canada, and Russia); and the gradual lifting of sanctions that the U.S. and its allies have imposed on Russia.

Several days after the release of the peace plan, about which President Volodymyr Zelenskyy initially expressed significant concerns―particularly the territorial concessions and restrictions on the size of its military―it appeared that the Ukrainian government was amenable to the plan subject to working out certain details. However, the Russian government had not accepted the agreement by the end of November.

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Important information

This material represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. This information should not be relied upon by the reader as research or investment advice regarding SEI’s portfolios or any stock in particular, nor should it be construed as a recommendation to purchase or sell a security, including futures contracts. It is intended for educational purposes only.

There are risks involved with investing, including loss of principal. International investments may involve risk of capital loss from unfavorable fluctuation in currency values, from differences in generally accepted accounting principles or from economic or political instability in other nations. Emerging markets involve heightened risks related to the same factors as well as increased volatility and lower trading volume. Narrowly focused investments and smaller companies typically exhibit higher volatility. Bonds and bond funds will decrease in value as interest rates rise. High-yield bonds involve greater risks of default or downgrade and are more volatile than investment-grade securities, due to the speculative nature of their investments.

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