QuickTake: Market Insights, as of November 5, 2026

QuickTake market insights on economic trends, inflation, and market performance, highlighting risks, volatility, and outlook for wealth management strategies.
Equitable Investment Management

From the desk of:

Kenneth T. Kozlowski, CFP, CLU, ChFC
Chief Investment Officer

Market Update: Resilient Fundamentals Meet a Shifting Market Environment

Markets entered November amid a notable shift in investor sentiment, as resilient U.S. economic growth and strong corporate earnings were met by renewed inflation pressures and increased volatility. The economy continues to benefit from a healthy labor market and solid consumer backdrop, while third-quarter GDP growth surprised to the upside at 3.4%. At the same time, higher oil prices have contributed to renewed inflation concerns, complicating the interest-rate outlook and keeping monetary policy in focus.

Beneath the surface, market leadership has changed considerably. After several years of strong momentum and growth leadership, investors have increasingly rotated toward value, lower-volatility and more defensive areas of the market. Fixed income also rebounded meaningfully during October as elevated yields attracted renewed demand. Against this backdrop, maintaining diversification and a long-term perspective may be increasingly important as investors navigate shifting leadership and higher cross-asset volatility.

Economic fundamentals remain supportive

  • The U.S. economy remains on solid footing, with third-quarter GDP growth demonstrating continued economic momentum despite elevated interest rates.
  • Unemployment remains near levels consistent with a healthy labor market, while job openings continue to outnumber unemployed workers, helping support consumer spending and the broader economy.
  • Corporate earnings have also remained supportive, providing a fundamental backdrop for equities even as investors reassess valuations following several years of strong market gains.

Inflation and federal reserve policy remain in focus

  • Inflation has proven persistent, with higher oil prices contributing to an increase in headline CPI to 3.7%, moving inflation further from the Federal Reserve’s (The Fed) 2% objective.
  • The Fed held rates steady at its October meeting, but markets continue to evaluate the potential for further tightening as policymakers balance resilient economic growth against persistent price pressures.
  • Inflation pressures are not limited to the U.S., as developed-market central banks continue to contend with the effects of higher energy prices and elevated inflation, reinforcing the importance of monetary policy to the global investment outlook.

Fixed income finds renewed support

  • After a challenging start to the year as yields moved higher, fixed income experienced a strong rebound in October as attractive yields helped bring investors back into the bond market.
  • Demand for U.S. Treasuries contributed to falling yields during the month, helping fixed income post its strongest monthly performance of the year and providing greater support to portfolios.
  • Credit markets warrant continued attention, as high-yield spreads widened more significantly than investment-grade spreads during October, suggesting investors have become somewhat more discerning about credit risk.
  • With yields remaining historically attractive, active fixed-income strategies may have greater opportunities to manage interest-rate and credit exposure as market conditions evolve.

Market leadership is shifting

  • October brought a significant change in factor leadership: minimum-volatility strategies gained nearly 6% while momentum declined almost 11%, highlighting the magnitude of the rotation taking place beneath the broader market.
  • That rotation has continued into early November, with investors increasingly favoring value and defensive areas while technology and other growth-oriented segments have come under greater pressure.
  • Recent weakness in AI-related companies has reflected a combination of fundamental questions, changing investor sentiment and technical selling pressures, illustrating how quickly leadership can change following an extended period of concentrated performance.
  • Despite the recent pullback, broader equity returns remain positive year to date and the market remains relatively close to previous highs, while underlying economic and earnings fundamentals continue to provide support.

Diversification is always important

  • Stock and bond correlations, which had reached multi-decade highs, have begun to decline as fixed income has strengthened, potentially restoring some of bonds' traditional role as a portfolio diversifier.
  • Alternative strategies may provide another source of diversification during periods of heightened equity volatility, with areas such as energy and managed futures offering differentiated return drivers.
  • Recent market moves reinforce the potential value of combining multiple asset classes, investment styles and sources of return rather than relying too heavily on the areas that previously led the market.

Active management matters as leadership broadens

Economic fundamentals remain constructive, supported by solid growth, healthy employment and resilient corporate earnings. Yet the investment environment is becoming more complex. Persistent inflation, uncertainty surrounding interest rates, elevated volatility and significant rotations across sectors and investment styles are creating a market in which yesterday's leaders may not necessarily remain tomorrow's.

After an extended period in which a relatively narrow group of growth and technology companies drove market performance, recent shifts toward value, lower-volatility strategies, fixed income and other areas of the market demonstrate the importance of remaining diversified and flexible. Greater dispersion may also create opportunities for active managers to distinguish among companies, sectors and asset classes based on valuations, fundamentals and risk rather than simply following recent momentum. With economic fundamentals still supportive but market leadership evolving, we continue to believe that diversification, active management and a disciplined long-term approach remain important tools for navigating changing market conditions.

Insights are as of November 5, 2026, and are subject to change. Not to be used, or interpreted, as investment advice or a recommendation.​

Current as of the date of issuance subject to change without notice. This material is not intended to be an offer, solicitation, or investment advice, nor does it consider individual investor circumstances, objectives, or needs.  While investing in general involves risk, including loss of principal invested, foreign securities involve special additional risks, including, but are not limited to, currency risk, political risk, and risk associated with varying accounting standards. Emerging market investments may accentuate these risks. Investments in large-cap companies may involve the risk that larger more established companies may be unable to respond quickly to new competitive challenges such as changes in technology and consumer tastes, and the securities of mid-cap companies may be more volatile and less liquid than the securities of larger companies. Investments in small companies involve additional risks with a typically higher risk of failure.  Value investing may increase the volatility of the portfolio and may not produce the intended results over short or long time periods. Growth investing is based upon the investor's subjective assessment of fundamentals or the companies he or she believes offer the potential for price appreciation. Regarding high-yield bonds, lower-rated debt securities (commonly referred to as junk bonds) involve additional risks because of the lower credit quality of the securities in the portfolio. The investor should be aware of the possible higher level of volatility, and increased risk of default.

Important Information

Definitions:

S&P 500 Index is a weighted index of common stocks of 500 leading companies in leading industries of the U.S. economy, capturing 75% coverage of U.S. equities. The index is capitalization weighted, thereby giving greater weight to companies with the largest market capitalizations.

Russell 2000® Index is an unmanaged index which measures the performance of approximately 2000 of the smallest companies in the Russell 3000® Index, which represents approximately 10% of the total market capitalization of the Russell 3000® Index. It is market-capitalization weighted.

MSCI Emerging Markets Index is a free float-adjusted market capitalization index that is designed to measure equity market performance of emerging markets. The MSCI Emerging Markets Index consists of the following 24 emerging market country indices: Brazil, Chile, China, Colombia, Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Korea, Kuwait, Malaysia, Mexico, Peru, Philippines, Poland, Qatar, Saudi Arabia, South Africa, Taiwan, Thailand, Turkey and United Arab Emirates.

A basis point (BPS) is a unit of measure used to indicate percentage changes in financial instruments. Basis points are typically expressed with the abbreviations "bp," "bps," or "bips." One basis point is equal to 1/100th of 1%, or 0.01%. In decimal form, one basis point appears as 0.0001 (0.01/100).

Information provided in this newsletter is general in nature, is provided for informational purposes only and should not be construed as investment advice. The views and opinions expressed are those of the author(s) as of the stated date of their contribution and any such views and opinions are subject to change at any time based on market, or other conditions, and are not intended to be a forecast of future events, a guarantee of future results or investment advice. Securities and sectors referenced should not be construed as a solicitation or recommendation, or be used as the sole basis for any investment decision.

All investments contain risk and may lose value. Statements concerning financial market trends or portfolio strategies are based on current market conditions, which will fluctuate. There is no guarantee that any investment strategy opined on will work under all market conditions or is appropriate for all investors and each investor should evaluate their ability to invest for the long term, especially during periods of downturn in the market. Outlook and strategies are subject to change without notice.

Past performance is not a guarantee of future results. Portfolio re-balancing and diversification do not guarantee a profit or protection against loss in a declining market.

No guarantee or representation is made that investment objectives and/or opinions stated will be achieved. The experience of each specific client or investor may vary.

Due to the subjective aspect of these analyses, the effective evolution of the economic variables and values of the financial markets could be significantly different from the projections, forecasts, anticipations and hypotheses, which are communicated in this material.

QuickTake editions feature commentary from managers of investment portfolios that are available through model portfolios, mutual funds, and variable life insurance policies and variable annuity contracts issued by Equitable Financial Life Insurance Company of America (Equitable America) (AZ stock company) with an administrative office located in Charlotte, NC, and Equitable Financial Life Insurance Company (Equitable Financial) (NY, NY). Variable annuities and variable life insurance products are co-distributed through Equitable Advisors, LLC (member FINRA, SIPC) (Equitable Financial Advisors in MI and TN) and Equitable Distributors, LLC.

Equitable Investment Management Group, LLC (EIMG) is a wholly-owned subsidiary of Equitable Financial, which is an indirect, wholly-owned subsidiary of Equitable Holdings, Inc. Equitable Investment Management, LLC (EIM LLC) is an indirect, wholly-owned subsidiary of Equitable Holdings, Inc.  EIMG and EIM LLC are affiliates of Equitable Advisors and AllianceBernstein L.P ("AB"). References to “Equitable Investment Management” include EIMG, and its affiliate, EIM LLC, unless otherwise stated.

1290 Funds is part of the family of mutual funds advised by Equitable Investment Management Group, LLC (EIM). EIM is a wholly owned subsidiary of Equitable Financial Life Insurance Company (Equitable Financial), NY, NY. Equitable Distributors, LLC is the wholesale distributor of the 1290 Funds. Equitable Advisors, LLC (member FINRA, SIPC) (Equitable Financial Advisors in MI and TN) offers 1290 Funds to retail investors. The Funds are distributed by ALPS Distributors, Inc., which is not affiliated with EIM, Equitable Financial Life Insurance Company, Equitable Distributors, LLC, Equitable Advisors, LLC (member FINRA, SIPC) (Equitable Financial Advisors in MI and TN) or the subadvisors. All Equitable-branded companies are affiliated.

Model portfolios are made available to clients of financial intermediaries, including Equitable Advisors, through LPL Financial's Model Wealth Portfolio (MWP) program on a non-discretionary basis by Equitable Investment Management.

An investor should consider investment objectives, risks, charges and expenses carefully before investing. Obtain a copy of the prospectus at 1290funds.com, which contains this and other information, or call (888) 310-0416.

Read the prospectus carefully before investing. Please consider the charges, risks, expenses and investment objectives carefully before purchasing a variable life insurance policy, mutual fund or variable annuity. For a prospectus containing this and other information, please contact a financial professional or visit equitable.com. Please read the prospectus carefully before you invest or send money.

       Variable Life Insurance, Variable Annuities and Mutual Funds: • Are Not Deposits of Any Bank • Are Not FDIC Insured • Are Not Insured by Any Federal Government Agency • Are Not Bank Guaranteed • May Go Down in Value

© 2026 Equitable Holdings, Inc. All rights reserved.

GE-9229020.1 (11/2026) (Exp. 11/2030)