October 2025 Market Recap
October 2025 – Market Commentary
This October, Markets extended their gains once again, led by continued strength in the technology sector. The Federal Reserve delivered another 25 basis point rate cut, while the ongoing government shutdown delayed several key economic reports. Treasury yields moved lower across most of the curve, while cryptocurrencies struggled to maintain momentum.
Markets moved higher across the board for the second straight month, as the S&P 500 posted a gain of 2.3%. This advance was led by the Nasdaq and emerging markets, which increased by 4.7% and 4.2% respectively. October’s broad-based gains reflect continued investor confidence, as the Fed cut interest rates by 25 basis points for the second consecutive month.
Treasury yields declined across most of the curve in October, helping the major bond indices post positive returns on the month. However, comments from the Federal Reserve press conference cast doubt on a December rate cut creating volatility in bond markets. The Bloomberg US Aggregate bond index was up .62%, followed by the
The ongoing government shutdown delayed several key economic releases, limiting visibility into the broader economy. With labor and select inflation reports postponed, the Fed Funds Rate 25 basis point rate cut to a target range of 3.75%–4.00% remains the most significant policy development.