Year-End Market Momentum: Navigating Sentiment, Seasonality & Sector Trends

November 13, 2025 (11 AM EST)

As 2025 draws to a close, investors find themselves walking a familiar tightrope — balancing optimism over resilient corporate earnings and innovation with caution about valuations and policy uncertainty. The question on everyone’s mind: Can the market’s momentum hold through year-end?

After a volatile mid-year, the broad U.S. equity market has regained its footing. The SPDR S&P 500 ETF (SPY) now trades in the $670’s – 680’s at the time of this writing, roughly flat over the past month, but up solidly year-to-date. Despite lingering macro crosscurrents, sentiment across Wall Street has turned modestly bullish.

Recent surveys of investment managers show that roughly two-thirds of advisors remain optimistic heading into the final quarter, though most concede that “the easy money” has already been made. Research from Morningstar suggests the U.S. market is trading just above fair value — around 1% premium — implying little margin for error but still room for selective upside.

Meanwhile, Morgan Stanley and CFRA Research both forecast mid-single-digit gains into year-end, driven largely by stable earnings, a cooling inflation backdrop, and steady consumer demand.

In short: this isn’t a runaway bull, but neither is it the cliff many feared. Instead, it’s a market defined by disciplined optimism.

Market veterans know that the calendar has a rhythm — and history says November and December tend to deliver the goods. According to long-term data from Bank of America and StockCharts, the S&P 500 has produced above-average returns in over 60% of Novembers and roughly 70% of Decembers, thanks to year-end portfolio rebalancing, tax-loss harvesting, and holiday-driven consumer activity.

This “Santa Claus Rally” isn’t a myth alone. While it doesn’t hit every year, the November-to-January window has historically outperformed the rest of the calendar. As one strategist quipped:

“Seasonality doesn’t predict direction — it nudges probabilities.”

That nudge, right now, leans bullish.

If seasonality is the wind, then sector positioning is the sail. Historical and current trends point to a few standout groups heading into the close of the year:

Fueled by capital spending on AI infrastructure and digital transformation, tech continues to dominate both headlines and returns. With sentiment stabilizing and earnings resilience, it remains a core allocation.

The holiday season historically gives a late-year bump to retail, travel, and leisure. Even with cost pressures, consumer demand remains resilient — a key support for cyclical momentum.

Bank of America’s seasonal data show that industrials and healthcare have outperformed in over 80% of past Novembers. These sectors offer a blend of growth and defense, making them ideal for investors seeking balance in uncertain markets.

The so-called “January Effect” often begins in December, as investors rotate into smaller companies ahead of the new year. The Russell 2000 historically beats the S&P 500 in December about three-quarters of the time, giving smaller names an attractive short-term setup.

With the market near highs and valuations full, 2025’s final weeks may favor selectivity over speculation. A blend of growth exposure and defensive ballast — think quality tech, healthcare, and industrials — may capture upside while cushioning against volatility.

For investors with dry powder, the coming weeks may offer opportunistic entry points if seasonal trends play out. But even for the long-term investor, this window serves as a reminder: the rhythm of the market year still matters, especially when sentiment and seasonality align.

As 2025 closes, the market’s tone is quietly optimistic.
Seasonal tailwinds, resilient earnings, and cooling inflation could combine to make this a constructive year-end — not euphoric, but promising.

In markets, as in sailing, sometimes catching a steady wind beats waiting for a storm.

Here are five stocks from a scanned filter SuperSeasonals list that, in my view, align most strongly with the broader market‐themes we discussed (sentiment, seasonality, sector/industry tilts) — along with my thoughts, why they stand out, and key risks.

Why it stands out:

• Positioned firmly in the technology/semiconductor sector, which is one of the sectors we highlighted as likely to benefit in the “late-year” seasonality window (growth & innovation).
• Strong tailwinds: The company is gaining traction in custom AI/chip infrastructure markets.
• Analysts’ metrics: For instance, it has a decent Altman Z-Score (6.39) and Piotroski F-Score (7) which suggest financial robustness.

Key stats / trends:

• Recent revenue growth: Revenue for 2025 is up ~4.7% vs 2024.
• But margin pressure: Despite growth in AI business, gross margins are declining (e.g., ~59.8% in Q1) due to higher cost of custom silicon.
• Analyst consensus: “Moderate Buy” with a target price ~$93.06 (which implies only modest upside from current levels) according to MarketBeat.

How this ties to our outlook:

• Given the seasonality tailwind for growth/tech sectors and our earlier discussion of selectivity, MRVL fits well as a growth-tilt during the November-December period.
• But given margin headwinds and the limited upside implied by analyst targets, it’s more a select exposure rather than a broad “go all-in”.
• If we assume the broader market sees mid‐single‐digit gains into year-end, a company like MRVL could outperform, assuming AI tailwinds hold.

Key risks:

• If AI spending slows or customer hyperscaler orders pull back, that could hurt the growth thesis.
• The semiconductor sector is cyclical; valuations can swing quickly if macro or policy shifts.
• Limited upside based on current analyst consensus → might already have much of the positive news priced in.

Why it stands out:

• This is a building materials / infrastructure‐related company, which ties into the cyclicals and infrastructure/industrial themes we flagged as potential sector standouts heading into year end (especially if economic activity remains resilient).
• Its business is exposed to infrastructure, construction, and non‐residential building — all areas that benefit from sustained economic momentum and tailwinds (e.g., the U.S. infrastructure agenda).

Key stats / trends:

• Q3 2025 results: Revenues grew 5% year over year ($11.1 billion vs $10.5B).
• The company is targeting growth of 7-9% annually over next five years (per Investor Day) and aims for EBITDA margins of ~22-24%.
• But: the construction/materials sector is inherently cyclical and sensitive to macro/economic dips.

How this ties to our outlook:

• In a seasonally favourable period (Nov/Dec) and with modestly positive market sentiment, companies like CRH could see a tailwind if infrastructure spending remains strong.
• It offers a hybrid exposure: partly cyclical growth (construction/infrastructure) but also somewhat defensive given its scale and essential nature of materials.
• If we expect the broader market to deliver modest gains and want to lean into sectors with real‐economy linkages (rather than pure tech), CRH is a good pick.

Key risks:

• If macro slows (consumer, construction, business investment) this company could see demand drop.
• Being cyclical, if seasonality or sentiment weakens, CRH may underperform.
• If interest rates rise further (raising costs for construction) that could dampen outlook.

Why I’m picking it:

• This is in the healthcare/medical supplies Recall from our sector analysis: healthcare was among the sectors flagged as having historically done well in November (and offering defensive (or resilient) characteristics if markets become choppy).
• In a period of mixed sentiment (modestly positive but with risk of volatility), healthcare can serve as ballast while still offering upside.

How this ties to our outlook:

• If the broad market doesn’t deliver a big rally but rather a steady climb, GILD could help anchor the portfolio.
• It offers diversification away from pure growth/tech risk, which aligns with our recommendation of selectivity.

Key risks / what to check:

• Biotech/drug companies have unique risks (pipeline failures, regulatory decisions, patent cliffs).
• Need to check GILD’s recent earnings, pipeline updates, and how much upside remains relative to valuation.
• While “defensive”, if interest rates fall and risk assets rally, growth names may outperform and this could lag.