For the week ending October 24, 2025.

Investors latched onto the bright spots last week, lifting stocks even as the data sent mixed signals. Softer inflation stoked hopes for a Fed rate cut, while other reports showed business activity gaining momentum. Growth names rallied on the news, but traditional “safe” havens like gold and defensive stocks lost ground.

U.S. Stock Markets

U.S. stocks logged a strong week, led by small and mid-caps. Small Cap Value rose 3.64%, Mid Cap Growth gained 2.82%, and Large Cap Core added 1.94%. Friday’s softer-than-expected September inflation report boosted confidence in a Fed rate cut at the next meeting. That optimism was tempered by earlier-week PMIs showing business activity picking up—signaling a still-resilient economy and supportive earnings backdrop. Investors piled into small and mid-sized names on the view they’ll benefit most from lower borrowing costs.

U.S. Market Sectors

Sectors were split as investors chased growth. Technology jumped 3.01%, boosted by strong semiconductor and cloud computing performance. Industrials gained 2.1%, driven by machinery and aerospace strength. Energy rose 2.43%, lifted by oil and gas exploration as crude prices climbed. Meanwhile, defensive sectors lagged: Utilities dipped 0.2%, Consumer Staples fell 0.8% due to weak packaged food results, and Telecommunications dropped 1.46%, reflecting a pivot from safe dividends to growth bets.

International Markets

International markets caught a lift from Wall Street’s optimism, driven by hopes of Fed rate cuts and easing trade tensions. Latin America’s emerging markets led with a 1.42% gain, boosted by Brazil’s 2.8% surge on commodity strength, though Mexico dropped 1.2%. Europe climbed 0.56%, with Germany up 1.9% and the UK gaining 0.7%. The Pacific region rose 1.29%, with Japan jumping 2.5%, Hong Kong advancing 1.8%, and South Korea gaining 1.1%, while China stayed flat.

Bonds and Currencies

The bond market was stuck in a tug-of-war. Softer inflation data, with September’s CPI rising just 0.3% month-over-month, hinted at lower yields, but strong economic signals like a jump in home sales and upbeat manufacturing kept things in check. The 10-year Treasury yield wobbled between 3.95% and 4.02%, and the Bloomberg U.S. Aggregate Bond Index barely budged, up 0.18%. Junk bonds took a breather last week, slipping about 0.3% as credit spreads widened. International bonds, though, were up 0.2%, thanks to a softer dollar and steady yields across Europe and Japan.

Meanwhile, the U.S. dollar climbed 0.58%.

Commodities and Gold

Commodities were all over the place, with the Bloomberg Commodity Index climbing 3.33%, largely thanks to energy. Crude oil surged to $62.74 a barrel, boosted by a surprise 1 million-barrel drop in U.S. inventories, signaling robust demand. Copper also shone, rising about 2.1%, driven by optimism over global manufacturing and easing U.S.-China trade tensions. Gold took a hit, dropping 2.95%, and silver followed suit, falling 3.2%, both stung by a stronger U.S. dollar (up 0.58%) and profit-taking after their big year-to-date runs.

Crypto Currency

Bitcoin held firm around $115,000 this week, recovering from October’s chaotic $19 billion flash crash, buoyed by the unexpected pardon of Binance founder Changpeng Zhao. The news sparked buzz about Zhao’s potential return, while JPMorgan’s plan to use Bitcoin and Ethereum as loan collateral by year-end signaled crypto’s growing mainstream clout. Ethereum stayed strong above $3,800. Whispers of new regulatory clarity from Washington kept investors hopeful, even as global trade tensions lingered.

The Week Ahead

The biggest news from last week wasn't just the data; it was the setup for this week. The Federal Reserve (FOMC) has its big two-day meeting starting on Tuesday. Following last week's soft inflation report, the market is now widely expecting the Fed to announce another quarter-point (0.25%) interest rate cut on Wednesday. But with this Fed, it's anyone's guess