Engineering The Trade - November 7, 2025 - Market Rebounds Sharply in Volatile Session
Update: 2025-11-07
Description
The S&P 500 staged a dramatic intraday reversal Friday, erasing early losses to trade near flat after falling significantly earlier in the session. The index recorded a 116-point range, the widest since mid-October.
Gus Downing joins Jermal Chandler to discuss how market sentiment shifted rapidly during the session, potentially influenced by optimism about an earlier government shutdown resolution. Both traders had been reducing long delta positions throughout the week but maintained some bullish exposure.
The discussion highlighted how earnings season has punished companies making large investments, particularly in AI and tech sectors. Meta, Microsoft, and Palantir all declined post-earnings, while Netflix and Tesla provided early warning signs of market sentiment.
Gus Downing joins Jermal Chandler to discuss how market sentiment shifted rapidly during the session, potentially influenced by optimism about an earlier government shutdown resolution. Both traders had been reducing long delta positions throughout the week but maintained some bullish exposure.
The discussion highlighted how earnings season has punished companies making large investments, particularly in AI and tech sectors. Meta, Microsoft, and Palantir all declined post-earnings, while Netflix and Tesla provided early warning signs of market sentiment.
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