Monthly Market Summary
Wall Street experienced notable volatility in October. Several major tech firms posted favorable corporate earnings data for the third quarter, and overall, the percentage of S&P 500 companies reporting positive earnings surprises, at 83.2% through the third quarter, was above the long-term average. Among the market sectors, information technology, health care, and consumer discretionary moved higher, while financials and consumer staples were among the sectors that underperformed.
October saw the U.S. economy face slowing job growth, elevated inflation, and a significant monetary policy pivot by the Federal Reserve, which cut interest rates in October for a second time this year. The government shutdown has hampered the release of important information, making it difficult to gauge the state of the economy.
International Markets
October was a good month for European stock markets, with some indexes reaching record highs during the month. The key drivers in the European stock market centered around AI stocks, positive economic signals, and the strong corporate earnings. While eurozone GDP rose 0.2% in the third quarter from the second, Germany and Italy saw little to no growth in the quarter. Stock markets in Asian countries experienced significant volatility, often reacting to developments in the U.S.-China trade talks and key economic data. In October, the STOXX Europe 600 Index rose 0.3%; the United Kingdom's FTSE advanced 2.4%; Japan's Nikkei 225 Index jumped 14.5%; and China's Shanghai Composite Index rose 1.9%.
On A Personal Note
Jeff and Peggy went to Keeneland racetrack for the fall meet. Jeff had a beautiful day for taking photographs. Peggy picked more winners. In October, Drew and his family visited his daughter for the Auburn Georgia football game and witnessed the officiating travesty that led to the referee's indefinite suspension. He would have preferred to see a win! Chris's daughters finished up their fall activity seasons, and now they are on to the start of gymnastics season for his oldest daughter. Lisa and David took a couple of long weekend trips this past month. The first was to Bardstown, Kentucky for a concert. The second trip was to Jupiter, Florida for some sunshine and relaxation. Sam finished up the golf season with a win at Wildwood's last tournament of the year. Proof that miracles do happen! October was full of "firsts" for Taylor's little family; first family zoo trip, Charlotte's first word (Dada!), and the first time MISSING Halloween. Charlotte was pretty sick that day – good thing she won't even remember she missed out!
