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CPI, earnings, and trade optimism drive markets to record highs

The stock market built on last week’s rebound with another broad advance, as investors rotated back into equities following the prior pullback. 

The S&P 500 (+1.9%), Nasdaq Composite (+2.3%), and Dow Jones Industrial Average (+2.2%) all posted solid weekly gains, while the Russell 2000 (+2.5%) and S&P MidCap 400 (+2.3%) outperformed slightly, reflecting renewed appetite for cyclicals and smaller-cap exposure. Softer September CPI readings (0.3%; Briefing.com consensus: 0.4%) reinforced expectations for additional Fed rate cuts, pushing the major averages to record intraday and closing highs on Friday.

Leadership was broad but tilted toward growth-oriented and economically sensitive groups. The information technology sector (+2.8% WTD) paced the advance, supported by another strong week for semiconductor names. The energy sector (+2.4%) also outperformed alongside higher oil prices after Trump sanctioned several of Russia's largest oil companies, while the industrials  sector (+2.1%) joined in on earnings strength across its defense names.

Earnings updates added to the positive sentiment, with several large-cap companies delivering better-than-expected results and guidance that reinforced confidence in corporate profitability heading into year-end. Meanwhile, trade-related headlines contributed to some midweek volatility after mixed signals from U.S. and Chinese officials regarding tariff policy, though markets ultimately looked past the uncertainty by week’s end.

Defensive sectors lagged, with consumer staples (-0.6%) and materials (-0.2%) sectors finishing the week lower, suggesting a modest risk-on tone. 


Overall, the week’s gains reflected a continuation of post-pullback recovery momentum, with improving earnings sentiment and tempered trade concerns helping to sustain the market’s upward bias ahead of next week's mega-cap earnings. 

  • Russell 2000: +2.5% WTD
  • Nasdaq Composite: +2.3% WTD
  • S&P Mid Cap 400: +2.3% WTD
  • DJIA: +2.2% WTD
  • S&P 500: +1.9% WTD

 

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Past performance is not a guarantee of future results. Indices are unmanaged and one cannot invest directly in an index. Diversification does not guarantee investment returns and does not eliminate the risk of loss.

Data and rates used were indicative of market conditions as of the date shown and compiled by Briefing.com. Opinions, estimates, forecasts, and statements of financial market trends are based on current market conditions and are subject to change without notice. References to specific securities, asset classes and financial markets are for illustrative purposes only and do not constitute a solicitation, offer, or recommendation to purchase or sell a security. S&P 500 Index is a market index generally considered representative of the stock market as a whole. The index focuses on the large-cap segment of the U.S. equities market. Each company’s security affects the index in proportion to its market value. NASDAQ Composite Index is a market value-weighted index that measures all NASDAQ domestic and non-U.S. based common stocks listed on the NASDAQ stock market. Dow Jones Industrial Average is a widely used indicator of the overall condition of the stock market, a price-weighted average of 30 actively traded blue chip stocks, primarily industrials, but also includes financial, leisure and other service-oriented firms. Russell 2000 Index measures the performance of the smallest 2,000 companies in the Russell 3000 Index of the 3,000 largest U.S. companies in terms of market capitalization. MSCI Emerging Markets Index is a free float-adjusted market capitalization index that is designed to measure equity market performance of emerging markets.

Park Avenue Securities LLC (PAS) is a wholly owned subsidiary of The Guardian Life Insurance Company of America (Guardian). PAS is a registered broker/dealer offering competitive investment products, as well as a registered investment advisor offering financial planning and investment advisory services. PAS is a member of FINRA and SIPC.

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8076115.19 (Exp. 1/26)

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