Overview
- The S&P 500, Nasdaq Composite, and Dow set record highs in 2025, leaving Wall Street on pace to enter 2026 with the second-priciest market since 1871.
- The Nasdaq Composite fell 1.5% in November, its worst monthly performance since March, yet it remains in a new bull market.
- The latest Nasdaq bull market traces to the April 8 low and became official with new highs in late June after tariff-driven losses earlier in the year.
- This year’s advance has been propelled by artificial intelligence, expectations for future Federal Reserve rate cuts, and stronger-than-expected corporate earnings.
- Valuation pressures are evident in the Nasdaq-100 at about 35 times earnings versus a 10-year average near 26, with history suggesting pullbacks can create long-term opportunities.