Economic Resilience Amid Market Volatility

Recorded November 6, 2026

Financial markets have recently experienced heightened volatility, as weakness in technology stocks, interest rates, and changing investor sentiment following the midterm elections have influenced market performance. Yet beneath the daily market movements, several underlying economic trends continue to shape the outlook.

In the latest Commerce Trust Market Brief video, Scott Colbert, Chief Economist and Director of Fixed Income Management, examines the broader picture, including the resilience of economic growth and employment, persistent inflation pressures, and changing dynamics across equity and fixed income markets.

Topics discussed include:

• Market performance and sector rotation: How recent market volatility has affected major equity indexes, with a notable shift away from technology and communication services toward more defensive sectors.

• Economic growth and employment trends: What third-quarter gross domestic product (GDP) results and the latest employment data indicate about the economy's continued expansion and the breadth of job growth.
  

• Inflation and interest rate expectations: Persistent inflation and the Federal Reserve’s potential path forward on interest rates.
  

• The role of fixed income in a balanced portfolio: How recent declines in interest rates have supported bond market returns and helped offset some of the equity market weakness.

• Looking ahead to 2027: Key considerations for the economic and market outlook, including consumer affordability, the pace of AI-related investment, and the potential for moderating inflation.
  

Watch the latest economic update for Commerce Trust's perspective on the developments influencing financial markets and the economic outlook.

Read the transcript