Markets moved higher across the board for the second straight month, as the S&P 500 posted a gain of 2.3%. This advance was led by the Nasdaq and emerging markets, which increased by 4.7% and 4.2% respectively. October’s broad-based gains reflect continued investor confidence, as the Fed cut interest rates by 25 basis points for the second consecutive month.

Sector performance was split in October as Technology led the way with another near-7% month. Communication, Real Estate, and Financials were all negative, though none worse than Materials, which slipped 4.4% for the month.

The ongoing government shutdown delayed several key economic releases, limiting visibility into the broader economy. With labor and select inflation reports postponed, the Fed Funds Rate 25 basis point rate cut to a target range of 3.75%–4.00% remains the most significant policy development.

Treasury yields declined across most of the curve in October, with the 1-year serving as the lone outlier to have increased. The largest decline came from the 1-month Treasury, down 14 basis points to 4.06%, followed by the 3-month, which fell slightly less, by 13 basis points to 3.89%.


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