Weekly Market Recap: November 3 – 9, 2025
Last week, global markets and crypto pull back after three weeks of gains. Investors reacted to weaker economic data, poor tech earnings and renewed concerns about China’s growth, leading many to reduce risk heading into the weekend.
Equity Markets
Global equities retreated as investors rotated defensively:
- Dow Jones: -1.2% (YTD +10.4%)
- S&P 500: -1.6% (YTD +14.4%)
- NASDAQ: -3.0% (YTD +19.1%)
- MSCI EAFE: -0.5% (YTD +23.1%)
- 10-Year US Treasury Yield: steady at 4.09%
- Oil: -1.9% to $59.85, continuing its slide on demand concerns
- Bonds: -0.3%, pressured by risk aversion and thin liquidity
Tech stocks led declines, while defensive sectors provided some stability. Overall, this week marked the first meaningful correction after a period of strong gains.
Macroeconomics
In the US, the ISM Manufacturing PMI slipped to 48.7 from 49.1, indicating continued contraction in factory activity, while the ISM Services PMI remained in expansion at 52.4 but stayed below mid-year highs. Michigan Consumer Sentiment fell to 50.3, the weakest reading since May, reflecting fatigue over inflation and political uncertainty.
In China, the Manufacturing PMI softened to 50.6 from 51.2. Trade data showed exports fell 1.1% while imports rose 1.0%, narrowing the trade surplus to $90.1 billion from $90.4 billion. CPI increased by 0.2% year-on-year, signaling only a fragile recovery in domestic demand.
Across Europe, Germany’s trade surplus narrowed to €15.3 billion from €16.9 billion. The Bank of England kept rates steady at 4% but maintained a cautious stance due to ongoing inflation pressures.
In Australia, the Reserve Bank maintained rates at 3.6%, while the trade balance rose to $3.9 billion, supported by strong mining exports.
Overall, the macro data pointed to slowing momentum, with global growth concerns becoming more noticeable.
Crypto Markets
Digital assets mirrored broader equities, posting their steepest weekly drop since late summer:
- Bitcoin (BTC): -5.3% to $104.7K
- Ethereum (ETH): -8.3% to $3,583
The pullback was driven by caution over stretched valuations following remarks from major bank CEOs at a financial services conference. Liquidity tightened across exchanges and futures funding turned negative, suggesting short-term capitulation rather than structural weakness.
Global Overview
Markets continue to adjust in the post-FOMC environment. While central bank policy pauses are holding, growth data are eroding faster than inflation, raising questions about future momentum. China’s soft export figures revived concerns about global demand and European activity remained sluggish.
Conclusion
Last week marked the first meaningful correction in a while. Investors became more cautious as global economic data weakened and there were fewer reasons to take risks. With yields steady but growth momentum fading, markets now face a challenging balance between hopes for a soft landing and the reality of slowing economic activity. Crypto markets followed the same trend, with traders reducing exposure amid macro uncertainty.
Disclaimer: This content is for informational purposes only and is not financial advice.