U.S. equities extended their remarkable rally through the week ended October 24, 2025, as a cooler inflation print, encouraging corporate earnings, and optimism surrounding upcoming Federal Reserve rate cuts lifted all major indices to record highs. Wall Street’s advance was broad-based, led by technology and semiconductor names, underscoring renewed investor confidence in the soft-landing narrative. Overall, the final full week of October 2025 reaffirmed market confidence in a gentle landing—a backdrop of easing price pressures, resilient earnings, and an increasingly accommodative Fed pivot setting the tone for a robust year-end rally.
Weekly Index Performance
The S&P 500 gained 1.9% for the week, closing Friday at 6,791.60, after touching an intraday record high near 6,800. The Dow Jones Industrial Average added 1.7%, finishing at a record 47,207.12, marking its first-ever close above the 47,000 threshold. The Nasdaq Composite rose 2.1% to end at 23,160.40, buoyed by gains in NVIDIA, Broadcom, and Apple. The Russell 2000 small-cap index climbed 2.5% to 2,482.66, reflecting improved sentiment toward cyclical sectors. For the year, all four benchmarks sit comfortably in positive territory, propelled by AI-linked enthusiasm and easing inflation expectations.
Macroeconomic Reports and Inflation
The week’s pivotal release was September’s Consumer Price Index, which showed headline inflation slowing to 3.0% year over year, below the 3.1% consensus estimate, while core inflation eased to 3.3%. The data reinforced investor conviction that monetary policy easing is ahead. Regional manufacturing data also surprised positively, with the Empire State Manufacturing Index rebounding to 10.7, while jobless claims remained subdued, pointing to continued labor market resilience. The Treasury Department reported a $198 billion September budget surplus, its best fiscal reading in nearly six months.
Corporate Earnings and Movers
Corporate earnings dominated the week’s narrative:
- NVIDIA (NVDA) rose 5.25% over the last month after unveiling a new AI collaboration with Meta and Oracle.
- Broadcom (AVGO) moved up 4.37% over the last month on reports of a partnership to supply custom AI accelerators for OpenAI’s data centers.
- Intel (INTC) is up +22.61% over the last month following a strong quarterly report that beat revenue and margin estimates.
- Apple (AAPL) advanced 4.17% over the last month amid upbeat analyst commentary.
- Meta Platforms (META) gained 1.3% after reaffirming its AI development strategy.
- Eli Lilly (LLY) rose +11.27% over the last month.
- Tesla (TSLA) closed down 1.27% over the asteroid 5-days , but remains up 7.40% YTD.
- Oracle (ORCL) dropped 8.15% over the last month following concerns over near-term margins despite strong AI cloud commentary.
- Palantir (PLTR) is up 2.82% over the last month strengthened on news of expanded data analytics ties with Big Pharma.
IPO Activity
BillionToOne, Inc. (BLLN) and Grupo Aeroméxico (AERO) filed for November IPOs, signaling a gradual reawakening in the primary market pipeline. BillionToOne seeks to raise roughly $2.6 billion with a Nasdaq listing, while Aeroméxico’s NYSE debut aims to raise about $220 million.
Tariffs and Trade Developments
President Trump signed a proclamation enacting a 25% tariff on heavy-duty trucks and parts and 10% on bus imports, effective November 1. Meanwhile, U.S. and Chinese officials met in Malaysia in an effort to cool trade tensions before next month’s Asia-Pacific Economic Forum meeting. The USTR also launched a Section 301 investigation into China’s adherence to Phase One trade deal commitments.
Rates, Yields, and the Fed
The 10-year Treasury yield moved to 4.023%, while the 2-year settled near 3.501%, flattening the curve as markets priced in a near-certain 25 basis-point rate cut at the October 28–29 FOMC meeting. Officials including Chair Jerome Powell signaled openness to modest easing, stressing that inflation’s downward trajectory supports policy recalibration.
Commodities and Crypto
Commodities were mixed: WTI crude rose 6.82% to $61.44/barrel, while gold pulled back 4.83% $4,126.90/oz and silver fell 5.30% to $48.41/oz. Bitcoin traded just above $110,990.
