Weekly Market Sparks – Week of October 27 2025

Talking Points for The Week That Was and The Week Ahead

Executive Summary Sparks
• Last Week: U.S. stocks hit new highs as inflation data came in softer than expected (though still hitting a new 18-month high) and solid earnings from key companies provided support. 
• The Week Ahead: A busy calendar including major tech earnings, a likely Federal Reserve rate-decision, and renewed focus on U.S./China trade talks.
• Market Wisdom: In times of optimism, staying invested doesn’t mean being reckless, but staying diversified and disciplined remains the smarter way forward.

Sparks from the Week That Was
• Market Performance: The S&P 500 climbed to fresh record territory as softer than expected inflation (though headline CPI is still moving higher) boosted hopes for easier policy. 
• Economic Data: September CPI rose about 3.0 % Y/Y, a shade below expectations and fortifying rate‐cut hopes. 
• Sentiment & Confidence: Investor sentiment picked up on earnings and data surprise, despite broader uncertainty from the ongoing government shutdown. 
• Bond & Credit Markets: Yield curves remain under watch as markets are reading the inflation break as a green light for easing, which supports longer duration assets.
• Sector/Style Sparks: Tech continues leading as the “Magnificent 7” and large cap growth remain the epicenter of the rally. Broader market participation remains a key focal point.
• Other Noteworthy Sparks: The U.S. government shutdown is still creating a “data vacuum” for the Fed and markets. 

Sparks for the Week Ahead
• Economic Data: Durable goods, housing price indices, Q3 GDP advance will be must-watch for signs of growth softening or resilience. 
• Fed & Policy: The Fed’s meeting is expected to deliver a rate cut (or set expectations for one) — the key will be the forward guidance, not just the headline cut. 
• Markets & Earnings: Earnings from the biggest tech names (e.g., Apple Inc., Microsoft Corporation, Alphabet Inc., Amazon.com, Inc., Meta Platforms, Inc.) will be scrutinized for breadth beyond the mega-caps. A positive U.S./China trade outcome would add fuel.

Sparks of Market Wisdom
• Valuations are elevated and breadth remains narrow. This is a good time to make sure your portfolio doesn’t rely on one or two big winners.
• When optimism is high (stocks at all-time highs), the impulse is to chase, but discipline and diversification guard against the next setback.
• Remember: staying invested means being in the game; staying diversified means not putting all your chips in one story; staying disciplined means knowing what you own, why you own it, and under what conditions you’ll revisit decisions.

Quote of the week:

“Beware of your own biases; they don’t go away; you just learn to recognize them.” — Daniel Kahneman

Invest Well, Be Well.
Rusty Vanneman | rustysbridge.com