S&P 500 November 2025 Performance: Worst Since 2008 Amid Funding Stress Signals

As of November 18, 2025, the S&P 500 index has declined ~3.42% month-to-date (MTD), its worst November performance since 2008 [0]. The 2008 November drop was significantly steeper at 7.48% [0], but current trends show emerging funding stress signals: record negative SOFR-fed funds futures spreads (-11.5bps for November, -12.5bps for December) and a $29.4 billion Federal Reserve repo operation on October 31 [1][2]. Sector performance reflects divergence: Energy (+2.01%) and Utilities (+1.18%) outperform, while Consumer Defensive (-1.62%) and Consumer Cyclical (-0.94%) underperform [0], indicating investor rotation toward commodity-linked or defensive assets amid uncertainty.

• Funding stress signals (repo market spreads, Fed repo intervention) are early warnings that may impact equity markets if unaddressed [1][4].
• Sector rotation (energy up, consumer defensive down) suggests investors are pricing in potential liquidity tightness and shifting away from consumer-focused sectors [0][3].
• The Fed’s repo operation aimed to ease funding pressure, but persistent stress highlights the need to monitor liquidity trends [2][4].

• Risks
  : Persistent funding stress leading to tighter financial conditions [1][4]; continued underperformance of defensive sectors [0].
• Opportunities
  : Potential upside in outperforming sectors like Energy, dependent on oil price dynamics and funding market stability [0][3].
• Monitoring Points
  : Repo market spreads, Fed liquidity actions, earnings reports from S&P 500 components [1][2][4].

The S&P 500’s 3.42% MTD decline as of November 18 is its worst November since 2008 but less severe than the 2008 drop [0]. Funding stress signals (repo spreads, Fed repo operation) are present but not yet at crisis levels [1][2][4]. Sector divergence (energy up, consumer defensive down) reflects investor rotation amid uncertainty [0]. This summary provides context for decision-making without prescriptive recommendations.