Markets In Focus: The Week That Was and What’s On Tap Week-Ending 10/24/2025
The Week That Was
U.S. equities closed the week on a resurgent note as investors welcomed renewed signs of disinflation and a potential Fed pivot. The S&P 500 climbed 2.1% and the Nasdaq Composite advanced 2.5% over the five sessions ending October 24, 2025, capping a volatile but ultimately upbeat stretch for risk assets.
Markets rallied sharply into Friday’s close following a cooler-than-expected September CPI report, which grew expectations for an additional 25-basis-point rate cut as early as next week. The S&P 500 vaulted above 6,800 while the Nasdaq notched fresh record highs, buoyed by optimism that inflation’s grip is easing and monetary policy could soon turn more accommodative.
Midweek volatility surfaced as AI-related names sold off amid profit-taking and cautious earnings commentary suggesting a “normalization” in infrastructure spending after a torrid first half. Algorithmic trading briefly amplified the drawdown before sentiment stabilized.
Earnings ultimately provided a firm tailwind. Intel, Netflix, and several major banks delivered better-than-expected results, underscoring the resilience of corporate profits even as growth moderates. Intel’s upbeat foundry progress and improving AI hardware visibility helped the semiconductor complex rebound late in the week, reversing much of Wednesday’s weakness.
With inflation cooling, yields retreating, and earnings holding up, investors rotated back toward growth and technology leadership—pushing both major indexes to new record territory and reaffirming confidence in the year’s dominant AI-driven bull market.
Next week’s deluge of mega-cap earnings and the pivotal FOMC meeting will determine whether this latest surge marks a sustainable breakout—or just the calm before another policy-driven test of conviction.
The Week Ahead
The week of October 27 is shaping up to be one of the busiest of the year for global markets. Roughly 44% of S&P 500 companies are set to report third-quarter results, with mega-caps Apple, Microsoft, Alphabet, Amazon, Meta, Visa, and ExxonMobil anchoring the lineup. Corporate earnings will offer a critical gauge of margin resilience amid cooling inflation and uneven demand.
Meanwhile, all eyes will turn to the Federal Reserve’s FOMC meeting on October 28–29, where policymakers are widely expected to deliver a 25-basis-point rate cut, bringing the federal funds range down to approximately 3.75%–4.00%. The move would mark a decisive step toward policy normalization as the Fed seeks to cushion a slowing labor market without reigniting price pressures.
The ongoing U.S. government shutdown threatens to delay some economic data releases, though key indicators such as the Case-Shiller Home Price Index, Chicago PMI, and University of Michigan Consumer Sentiment should still provide valuable insight into housing, manufacturing, and household confidence.
Bottom line: With earnings season peaking and the Fed poised to pivot, the coming week may set the tone for markets into year-end—expect volatility, but also opportunity for those positioned ahead of the curve.
DISCLOSURES
The information presented is the opinion of Legacy Bridge, LLC., and does not reflect the view of any other person or entity. The information provided is believed to be from reliable sources, but no liability is accepted for any inaccuracies. This is for information purposes and should not be construed as an investment recommendation. The opinions expressed are subject to change without notice. Reliance upon information in this material is at the sole discretion of the reader. This information is not intended to be complete or exhaustive and no representations or warranties, either express or implied, are made regarding the accuracy or completeness of the information contained herein. This material may contain estimates and forward-looking statements, which may include forecasts and do not represent a guarantee of future performance. Past performance is no guarantee of future performance. Investing involves risks. Legacy Bridge LLC., is an investment adviser registered with the U.S. Securities and Exchange Commission.
The S&P 500 generally represents performance of 500 large companies listed on exchanges in the U. S. It is one of the most commonly followed equity indices. The Nasdaq Composite Index is a market-weighted index that measures the performance of more than 3,000 common equities listed on the Nasdaq Composite Market. The Russell 2,000 Index is a market-cap weighted index that measures the performance of approximately 2,000 of the smallest companies in the Russell 3,000 Index. The MSCI ACWI captures Large and Mid-Cap representation across 23 Developed Markets (DM) and 24 Emerging Markets (EM) countries. With 2,921 constituents, the index covers approximately 85% of the global investable equity opportunity set. FactSet Research System is a financial data and software company that provides research for Wall Street professionals and individual investors.
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