Daily Market Recap - May 6, 2025: Volatility, Gold Strength & Rate Cut Hopes Fading

The S&P 500 gave bulls a brief moment in the sun, popping green early, but couldn’t hold it, finishing the day lower.

Daily Recap – May 6, 2025: Volatility, Gold Strength & Rate Cut Hopes Fading

Today’s market was a classic reminder that short-term noise and long-term trends don’t always play nice.

• Invesco QQQ Trust QQQ : Closed at $485.93, -0.63%
• iShares Russell 2000 ETF IWM : Closed at $198.94, -0.80%
• SPDR S&P 500 ETF Trust SPY : Closed at $563.51, -0.59%

The S&P 500 gave bulls a brief moment in the sun, popping green early, but couldn’t hold it — finishing the day lower. Meanwhile, gold continued its breakout, ripping through the $3,300 level like it had unfinished business. Big move.

🧠 The Bigger Picture

• PMIs came in mixed, but the market zeroed in on ISM data, which pointed to strength — especially in Prices Paid, which is a sticky inflation input. That’s important because it’s starting to chip away at rate cut expectations. Fed won’t be in a rush to pivot if price pressure reaccelerates.
• The Taiwan Dollar continued to flex against the greenback, extending its recent strength. Meanwhile, the US Dollar remained soft, which helped gold and commodities catch a bid.
• CTAs (Commodity Trading Advisors) are reportedly eyeing $10–$20B in fresh inflows into U.S. equities. That’s fuel waiting to be deployed — and if volatility spikes again, it might be what snaps us back into a momentum-driven push higher.
• On the flip side, oil took a hit after OPEC+ announced an output increase. Supply concerns faded fast, and prices adjusted lower across the board.

📊 Context Matters

• The market has already corrected more than 50% of its near-bear market drawdown, and historically, when that happens, we don’t often revisit fresh lows. Not impossible — but unlikely without a new catalyst.
• Volatility is not the enemy. It’s a feature of markets — not a bug. If you know what you own, you lean into these moments. If you don’t, these pullbacks shake you out.
• Remember: The stock market has doubled roughly every 9 years, historically. That growth is powered by long-term corporate earnings — not headlines.

📉 Reality Check for Investors

• The market drops 10% or more every 2 years, and 25% or more every 6 years. It’s part of the game.
• Out of 50 drops of 10%+, around 15 were 25% or more. If you can’t stomach those swings, you shouldn’t be in stocks to begin with.
• Key takeaway: If you’re not prepared for drawdowns, you’re not prepared to be an investor. Know your risk, know your plan, and keep perspective.

Final Word: We’re in a market that wants to go higher - but it won’t be a straight line. Stay focused, stay patient, and most importantly: know what you own and why. That’s how you win when things get bumpy.

Options had a banger of a trade today with HIMS ! Check it out: