Stocks Rise as Inflation Cools and Earnings Impress
Week Ending October 24, 2025
Markets ended the week on a high note, boosted by better-than-expected inflation data and strong third-quarter corporate earnings—particularly from large U.S. banks and tech firms. These positive drivers helped ease worries about trade tensions with China and supported broad gains across asset classes.
The S&P 500 rose 1.92%, the Nasdaq Composite climbed 2.31%, and the Dow Jones Industrial Average advanced 2.20%. The MSCI EAFE Index (tracking developed overseas markets) added 1.24%.
On the Canadian front, the S&P/TSX Composite Index rose approximately 0.60%, as materials, metals and technology names helped offset softness in energy.
Market Overview
Weekly Market Performance (October 20 – 24, 2025)
- S&P 500: +1.92%
- Nasdaq Composite: +2.31%
- Dow Jones Industrial Average: +2.20%
- MSCI EAFE (International Developed Markets): +1.24%
- S&P/TSX Composite Index (Canada): +0.60%
U.S. Markets: Records Set on Friday, Backed by Inflation Relief & Earnings
Stocks opened the week with momentum as markets looked past the recent U.S. government shutdown fears and focused instead on earnings strength and inflation trends. Tech and financial sectors led early in the week as sentiment improved.
Mid-week brought a brief wobble: some large tech companies reported weaker-than-expected results, and there was renewed talk of software export restrictions to China, which weighed on investor sentiment. But by Friday, the tone flipped firmly positive. A cooler-than-expected inflation print (CPI ~3.0% in September) helped reinforce hopes that interest rates may soon come down, and that prompted a broad rally. The Dow closed above 47,000 for the first time, and all three major U.S. indexes posted fresh highs.
Canada & the TSX
The S&P/TSX Composite Index rose 0.63% last week, as continued strength in precious metals and technology stocks offset declines in energy and industrials.
- Energy (−1.7%): Oil prices eased after a strong start to October, with investors locking in profits as global supply headlines stabilized.
- Materials (+3.6%): Gold extended its rally, trading above US $4,250 per ounce before settling at $4,111 per ounce, lifting mining and precious-metal producers.
- Financials (+0.5%): Canadian banks edged higher, mirroring the solid earnings trends seen among major U.S. lenders.
- Industrials (−0.4%): Transportation and infrastructure stocks pulled back slightly after several weeks of steady gains.
- Technology (+2.1%): Tech names benefited from strength in global chipmakers and renewed optimism around software earnings.
Economic data in Canada was limited, but investor focus remains on the Bank of Canada’s upcoming policy meeting. With inflation moderating and growth showing signs of cooling, markets are evenly divided on whether the central bank will move toward a rate cut before year-end. The Canadian dollar traded in a narrow range near C$1.36 per U.S. dollar, holding steady for the third consecutive week.
Economic Snapshot
Inflation & Rate Outlook:
The latest U.S. Consumer Price Index (CPI) came in slightly cooler than expected, 3.0% versus 3.1% forecast, helping to reinforce expectations for an eventual Federal Reserve rate cut. Softer price pressures have strengthened confidence that inflation is gradually returning toward the Fed’s 2% target.
Earnings Beat:
Third-quarter corporate earnings continued to exceed expectations, with the S&P 500’s blended earnings growth rate rising to roughly 9.2%, up from earlier projections. Strong results from large-cap technology, healthcare, and financial firms supported broader market gains.
Trade & Geopolitics:
U.S.-China tensions resurfaced midweek after reports of potential new software export restrictions, briefly weighing on sentiment. However, optimism returned as both sides reaffirmed plans for continued dialogue, and markets shifted focus back to strong earnings and improving inflation data.
Key Economic Reports: Week Ahead (October 27 – 31, 2025)
Monday, October 27
- Durable Goods Orders
Tuesday, October 28
- Case-Shiller Home Price Index
- Consumer Confidence
Wednesday, October 29
- U.S. Trade Balance in Goods
- Retail & Wholesale Inventories
- Pending Home Sales
- FOMC Rate Decision (Day 2)
- Fed Chair Press Conference
Thursday, October 30
- Gross Domestic Product (GDP, Q3 estimate)
- Weekly Jobless Claims
- Remarks by Fed Governor Michelle Bowman
Friday, October 31
- Personal Consumption & Expenditures (PCE) Index
- Speeches by Fed Presidents Logan, Hammack, and Bostic
Corporate Earnings: This Week
Monday, October 27
- Welltower Inc. (WELL)
- Cadence Design Systems, Inc. (CDNS)
- Waste Management, Inc. (WM)
Tuesday, October 28
- Visa Inc. (V)
- UnitedHealth Group (UNH)
- NextEra Energy (NEE)
- Booking Holdings (BKNG)
- Southern Copper Corporation (SCCO)
- American Tower Corporation (AMT)
Wednesday, October 29
- Microsoft Corporation (MSFT)
- Alphabet Inc. (GOOG/GOOGL)
- Meta Platforms (META)
- Caterpillar Inc. (CAT)
- ServiceNow, Inc. (NOW)
- Verizon Communications (VZ)
- The Boeing Company (BA)
- KLA Corporation (KLAC)
- Automatic Data Processing (ADP)
- CVS Health (CVS)
- Starbucks Corporation (SBUX)
Thursday, October 30
- Apple Inc. (AAPL)
- Amazon.com, Inc. (AMZN)
- Eli Lilly and Company (LLY)
- Mastercard Incorporated (MA)
- Merck & Co., Inc. (MRK)
- Gilead Sciences Inc. (GILD)
- Stryker Corporation (SYK)
- S&P Global Inc. (SPGI)
- Comcast Corporation (CMCSA)
- Altria Group, Inc. (MO)
- The Southern Company (SO)
Friday, October 31
- Exxon Mobil Corporation (XOM)
- AbbVie Inc. (ABBV)
- Chevron Corporation (CVX)
“Fact creates norms, and truth illumination.”
– Werner Herzog
If used in an emergency, I can help the hero – yet when you multiply all the numbers on my face, all you get is zero. What am I?
Last Week's Riddle: Fill in the blank: if Ruby’s mom is Patricia, then Patricia is the ____ of Ruby’s mother.
Answer: Name.
Our Qualicum Beach Team having way too much fun taking photos for our upcoming magazine ad.
Footnotes and Sources
1. WSJ.com, October 24, 2025
2. Investing.com, October 24, 2025
3. CNBC.com, October 20, 2025
4. CNBC.com, October 21, 2025
5. CNBC.com, October 22, 2025
6. WSJ.com, October 24, 2025
7. WSJ.com, October 24, 2025
8. IRS.gov, May 16, 2025
9. Medical News Today, June 11, 2025
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