Weekly Market Commentary -  Nov. 17, 2025

Week In Review

Market sentiment was restrained by cautious remarks from Fed officials and new concerns that major technology companies may be overstating profits by extending the depreciable life of artificial intelligence assets, causing a rotation from growth to value stocks and mixed equity results. Despite the uncertainty, the S&P 500 managed to eke out a +0.1% gain.

This Week

The U.S. government reopened on November 13th and reports are being prioritized. The September nonfarm payrolls update arrives on Thursday. The third quarter earnings season resumes with 13 S&P 500 companies reporting results, including the highly anticipated performance of Nvidia. 3

Portfolio Themes

Back in September, we discussed how municipal bonds may provide an opportunity for high-income

earners to lock in compelling current yields and decrease the risk of holding too much cash in non-qualified accounts. It’s worth noting, municipal bonds are issued by state government authorities to finance long-term public projects and interest income is generally exempt from federal taxation. Labor market fatigue suggests further dovish monetary policy in 2026, and municipal bond yields are starting to reflect the odds of further rate cuts and increasing tax rates. Just two months ago, 20-year maturity bonds with a AAA credit rating offered a tax-equivalent yield of 7.31% that was about 48% above the comparable U.S. Treasury note yield.4 Today, the same AAA municipal TEY is attractive but the yield advantage has been compressed to 37%.5 Active managers may be able to use the full yield curve and investment grade credit stack to deliver the best relative value and improve yield. Simplicity offers actively managed municipal bond portfolios that may provide enhanced income generation and also give investors a sense of civic pride by supporting projects that may benefit their local community.

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Data: Unless otherwise noted, data for charts, graphs, and tables is sourced from YCharts.

1 Style box returns use various Russell indices tied to specific areas of the market cap (vertical) and style (horizontal) spectrums. Indices are not typically available for direct investment, are unmanaged, and do not incur fees or expenses.

2 Index Statistics: P/E Ratio – Displays the forecasted P/E ratio of the representative index ETF. Yield - Dividend-per-share divided by current share price. Table statistics are updated weekly. MSCI indices represent broad global and international equity markets. Indices are represented by iShares ETF proxies (IVW, IVV, IVE, ACWI, and ACWX).

3 FactSet.

4 Invesco.

5 YCharts.

Past performance does not guarantee future results. Weekly commentary and investment advisory services are provided by Simplicity Wealth, LLC a SEC Registered Investment Adviser. Registration does not imply a certain level of skill or training. The information provided is for informational purposes only and does not constitute any form of advice or recommendation. The information contained within has been obtained from various sources and is believed to be accurate at the time of publication.