From the Desk - Economic Commentary
Scott Goedken, Institutional Strategies Director - 11/06/2026
Yesterday’s selloff was one of the sharpest in some time. The Nasdaq fell 5.5%, the S&P 500 lost 4.4% and the DJIA declined 3.4%, with the Nasdaq, S&P 500 and Russell 2000 posting their worst one-day losses since April 2025. Stocks are mixed this morning. The Nasdaq is up roughly 1.5% and the S&P 500 is modestly higher, while the DJIA is down about 1%.
Nonfarm payrolls increased by 165,000 in October, well above expectations for a gain of 59,000, while the unemployment rate declined to 4.1% from 4.2%. August and September payrolls were revised higher by a combined 84,000 jobs. Average hourly earnings rose 0.4% during the month and 3.1% from a year ago.
Treasury yields increased following the employment report, with the 2-year near 4.52% and the 10-year near 4.87%. Futures markets now place roughly a 77% probability on a 25-basis-point rate increase in December, up from about 66% yesterday.
Consumer sentiment improved to 51.0 in the preliminary November University of Michigan Surveys of Consumers reading from 48.0 in October. Year-ahead inflation expectations fell to 4.3% from 4.7%, while long-run expectations edged down to 3.4% from 3.5%. Despite the improvement, cost-of-living concerns remain elevated, with 57% of consumers spontaneously reporting that high prices have eroded their living standards.
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