Stocks ended October on a high note, with all major indexes advancing despite volatility earlier in the month. The NASDAQ led gains, setting a new record high as enthusiasm for AI and technology stocks continued to fuel investor optimism. Strong third-quarter earnings from major corporations—particularly within the tech sector—further lifted sentiment. The S&P 500 and Dow also closed the month higher, supported by a broad rebound in growth-oriented sectors.
The Federal Reserve’s second rate cut of the year helped sustain market momentum, easing borrowing costs amid signs of slower job growth and steady inflation. Treasury yields fell modestly, crude oil prices declined for a third straight month on oversupply concerns, and gold climbed as investors sought safety amid political and economic uncertainty.
Last Week’s Economic News
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The Federal Reserve reduced the federal funds target range by 25 basis points to 3.75%–4.00%, its lowest level since 2022. Policymakers noted weaker labor market conditions and modest inflation progress.
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The Consumer Price Index rose in September and 3.0% over the past 12 months, while core CPI (excluding food and energy) also rose slightly.
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The ongoing government shutdown continues to delay key reports, including October’s employment and GDP data.
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The national average retail price for regular gasoline was $3.04 per gallon on October 27, much lower than a year ago.
Eye on the Week Ahead
Markets will be watching closely for any signals from the Federal Reserve on future rate policy and updates on the government shutdown’s duration. BWFA will monitor corporate earnings and inflation data for early signs of the economy’s direction heading into year-end.
Have a nice week!
Sincerely,
Robert G. Carpenter