The tastylive network Macro Money - November 6, 2025 - Stock Market Rebound Fails: Why, and What's Next?
Nov 6, 2025
Market turbulence takes center stage as analysts dissect today's surprising stock declines. Explore the fading rebound and the impact of the ISM services index on growth expectations. Delve into conflicting signals from employment data and inflation concerns, revealing a complex economic landscape. The Fed's challenge of balancing labor weakness with persistent service inflation creates additional uncertainty. Hear strategies traders are adopting in response to shifting market conditions and the current sentiment unraveling.
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Rebound Quickly Reversed
- US stocks resumed selling after a one-day rebound, signaling renewed risk aversion across markets.
- Markets moved decisively lower today despite yesterday's rebound, so price action drives immediate trading decisions.
ISM Services Surprise Drove Yesterday's Bounce
- Strong ISM services (54.2 vs 50.8 expected) pushed yields higher and briefly supported risk assets.
- That upside surprise contrasted with today's risk-off move, highlighting mixed signals from growth data.
Yields, FX, And Policy Expectations Shifted
- Yields and the dollar pulled back today while the yen and euro strengthened, reflecting a cyclical sentiment shift.
- Policy expectations for December eased modestly as markets priced a higher chance of cuts versus yesterday.