It’s time to review last month’s key events and look ahead to what’s coming in the market and economic landscape. Download the latest edition of the Month-in-Review, developed by the Prime Capital Financial Team!
Quick Takes
- Stocks Continue Higher. U.S. stocks rose in October as earnings season kicked off with the S&P 500 rising 2.3%, the Nasdaq 100 rising 4.8%, and the Dow rising 2.6% on the month as earnings, continued AI deals, and a Fed rate cut overshadowed the government shutdown and trade tensions.
- Inflation and Interest Rates. The 10Y treasury yield was down in October ending the month at just under 4.1%. CPI inflation for September came in below expectations at 3.0% while PCE inflation was delayed because of the government shutdown.
- Government Shutdown. The U.S. government shutdown, which started in early October, has resulted in 750,000 furloughed federal employees, cutoffs in SNAP benefits, and delays in economic data releases. The CBO estimates that the shutdown has already cost the U.S. economy $18 billion.
- Earnings Season. 317 companies in the S&P 500 reported earnings for Q3. 64% of the companies reported above-consensus EPS, but the median stock posing a positive earnings surprise only outperformed the S&P 500 index by 32 bps on the day following their report versus 98 bps historically.
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This article is not to be construed as financial advice. It is provided for informational purposes only and it should not be relied upon. It is recommended that you check with your financial advisor, tax professional and legal professionals when making any investment or any change to your retirement plan. Your investments, insurance and savings vehicles should match your risk tolerance and be suitable as well as what’s best for your personal financial situation.
