John Hancock: Weekly Market Recap Week Ended October 31
Weekly Market Recap – Week Ended October 31
Market Momentum Carries into November
October closed on a positive note as U.S. markets advanced for another month, supported by strong corporate earnings, improving trade relations, and measured action from the Federal Reserve.
Earnings Strength Fuels Optimism
Corporate performance continued to exceed expectations, prompting analysts to raise their outlook for S&P 500 third-quarter earnings growth to 10.7%, up from an earlier forecast of 8%. The upward revisions reflect broad strength across multiple sectors and a resilient business climate.
Indexes Extend Gains
The S&P 500 and Dow each climbed more than 2% in October, marking six consecutive months of gains. The NASDAQ led with a 4.7% increase—its seventh straight monthly advance—underscoring ongoing investor confidence in technology and growth sectors.
Trade Progress Offers Relief
The United States and China reached a partial trade agreement that rolls back tariffs and addresses key issues such as rare earth exports and agricultural trade. The total tariff rate on Chinese imports will drop from 57% to 47%, offering modest relief to global supply chains and exporters.
The Fed’s Balancing Act
The Federal Reserve cut interest rates by a quarter point for the second consecutive meeting, aligning with expectations. However, Chair Jerome Powell signaled a cautious tone, noting that further cuts are “not a foregone conclusion.” Diverging opinions among Fed members suggest a data-dependent path forward as inflation and growth trends evolve.
Looking Ahead
October’s performance underscores steady market confidence amid mixed economic signals. Investors now turn their attention to the Fed’s December meeting and the durability of earnings strength heading into year-end.
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