Stock Market Update Tuesday May 6, 2025
- AlgoTradeAlert
- 6 days ago
- 3 min read
Stock Market Update Tuesday May 6, 2025 Equities Drift Lower Ahead of Fed Decision
U.S. equity markets opened under pressure and staged several intraday rebound attempts but ultimately ended the session in the red for a second consecutive day. With investors in a holding pattern ahead of tomorrow’s pivotal FOMC policy announcement, market activity remained relatively restrained. Notably, despite the session's decline, all three major indices closed well off intraday lows, underscoring the absence of conviction behind the selling.
S&P 500 (SPX): -0.8%
Nasdaq-100 (QQQ): -0.9%
Russell 2000 (IWM): -1.1%
Markets appear to be treading water, with participants awaiting clarity from the Fed on the trajectory of interest rates, balance sheet policy, and any shift in tone from Chair Powell.
Rates, Commodities & Crypto: Bull Steepening, Gold Breakout
In fixed income, Treasurys staged a bull steepening move, as yields on both ends of the curve declined:
2-year yield: down 5 basis points to 3.78%
30-year yield: down 2 basis points to 4.81%The move suggests a slight re-pricing of short-term rate expectations ahead of the Fed’s decision, coupled with ongoing demand for duration.
In commodities and digital assets:
WTI crude rebounded to $59/barrel, recovering from recent softness.
Gold surged further, climbing to $3,428/oz, continuing its sharp upward momentum amid geopolitical concerns and falling real yields.
Bitcoin remained firm near $95,000, consolidating recent gains.
The VIX edged higher, approaching 25, reflecting a modest uptick in implied volatility as investors hedge ahead of macro catalysts.
May 7, 2025
2:00 PM: FOMC Decision
Actual: 4.5
Expected: 4.5
May 8, 2025
8:30 AM: 1Q Preliminary Nonfarm Productivity
Actual: -0.8
Expected: 1.5
8:30 AM: 1Q Preliminary Unit Labor Costs
Actual: 5.1
Expected: 2.2
11:00 AM: April NY Fed 1-Year Inflation Expectations
Actual: n/a
Expected: 3.58
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