Asset Management Weekly Market Commentary

Market updates for the week ending
November 6, 2026

Key observations

• There were few places to hide during the week as continued sector rotation and a mid-week rally following the midterm elections quickly gave way to a cascading selloff. Indiscriminate selling of information technology stocks was the impetus for a sharp move lower in the S&P 500, but the traditionally defensive consumer staples and health care sectors, along with financials, proved to be relative bright spots as all three sectors posted a modest gain on the week.
• Abroad, developed markets held up quite well, with indices tied to the Eurozone posting gains of more than 1% on the week as energy prices, fell even with the dollar and yields moved higher. Conversely, MSCI Japan index didn’t perform nearly as well as the country’s industrials and information technology tilts brought the index lower by more than 5% on the week.
• While volatility in equities was elevated on the week, Treasury yields and credit spreads were remarkably calm and well contained. Post-midterms, market participants appeared to price-in the prospect of a speedy end to the conflict in the Middle East, which forced energy prices and yields on short-term Treasuries lower in concert. The move lower in energy prices also spurred investors to ratchet downward their expectations for hikes to the Fed funds in the months to come, with the futures market now pricing in less than two 25-basis point hikes by the end of next year.

What we're watching this week

• The National Federation of Independent Business (NFIB) Small Business optimism survey for October is released Tuesday following a 97.9 reading in September.
• The October Consumer Price Index (CPI) is set for release on Tuesday. Headline CPI is expected to rise 0.3% month over month, which would be a notable downshift from a 0.6% reading last month. Core CPI, which is more closely monitored by policymakers, is expected to rise 0.2%, which would fall 0.1% below the September reading.
• The October Producer Price Index (PPI) is slated for release on Friday, with Final Demand PPI expected to rise 0.4% month over month, which would be a notable drop from a 1.3% reading in September. Year over year, Final Demand PPI is expected to come in at 6.6%, which compares to a 6.3% reading last month.