Daily Market Recap (November 25th 2025)

The combined sources paint a picture of global financial markets operating under severe macroeconomic uncertainty, particularly due to a "data vacuum" created by a recent U.S. government shutdown which has undermined informed decision-making by investors and the Federal Reserve. Despite this instability, U.S. corporations demonstrated remarkable resilience during the Q3 earnings season, with S&P 500 growth exceeding expectations, largely driven by investments in artificial intelligence and the sustained strength of "Mag Seven" technology stocks. This bullish equity environment contrasts sharply with slowing consumer activity, as evidenced by a forecast showing a significant decline in November U.S. new-vehicle sales following the expiration of key electric vehicle subsidies. Simultaneously, central banks are signaling easing policies, as the Bank of England is expected to continue a gradual downward path for the Bank Rate if disinflation persists, while the European Central Bank maintains a data-dependent stance on its path to its 2% inflation target. This general trend toward monetary easing is supported by poor consumer confidence figures and weak economic data, which have prompted surging expectations for a Federal Reserve rate cut in December, even as the U.S. Dollar Index holds steady above the 100 mark.

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