Last Week’s Market Jumble
At the start of the week, U.S. stocks were in a mood swing – a little high, then a little low, all fueled by the buzz around earnings, jobs, and the rest of the world’s economic gossip.
Nasdaq’s Roller‑Coaster
- The Nakdaq Composite hit a record high midweek – a sweet spot for the tech‑heavy index.
- By Thursday, that glory had shivered and the peaks dropped hard, as investors felt the weight of new earnings from Meta and Microsoft.
- Overall, value stocks did better than growth guys, leaving the latter looking a bit “dry” in the sunshine.
Who’s Sprinkling Cash in the Wall Street Garden?
- About 42% of the S&P 500 companies pulled the curtain on their third‑quarter results.
- Tech kings – Meta, Microsoft, Alphabet, Apple, Amazon – got their moment in the spotlight.
- FactSet expected a 5.1% YoY jump for the S&P 500 earnings – a nice bump over the prior 4.3% forecast.
Job Talk: A Mixed Message Board
- September’s job openings slipped to 7.44 million, the lowest since early 2021.
- But the voluntary quit rate stayed steady – people still find what they’re looking for.
- October brought a bizarre clash: ADP’s 233,000 new private‑sector jobs versus the Labor Department’s 12,000 nonfarm hires.
- Despite the confusion, average hourly wages nudged up by 0.4%.
Manufacturing’s Marching Bananas
- The Institute for Supply Management reported a seventh straight month of decline, a 15‑month low at 46.5.
- Resulting in a 10‑year Treasury yield punchlined at 4.37%.
- Corporate bonds leaned more flexibly as demand for new issues stayed strong.
Europe’s Takeaway: Calm, Calm, Keep Calm
- The STOXX Europe 600 Index slid 1.52% as Middle‑East tensions simmered.
- France’s CAC 40, Germany’s DAX, and Italy’s FTSE MIB gave up 1.18%, 1.07%, and 1.42% respectively.
- UK’s FTSE 100 dipped a modest 0.29%.
GDP & Inflation Snapshot
- Eurozone GDP grew 0.4% in Q3 – double the last quarter and best bet for the rest of 2025.
- Germany pulled a 0.2% bump, dancing away from recession.
- Italy? Stagnated, a bit like your battery on low power mode.
- Headline inflation nudged to 2% in October; core inflation sat at 2.7%.
UK Budget: 70 Billion + Tax Hike = Bond Sell‑Off
- Labour’s new spend plan – 70 billion over five years – had bonds tremblè.
- Chancellor Rachel Reeves vowed “no nid for our economy,” but the markets whispered “we’ll see.”
- Economist T. Rowe Price predicted four more BoE cuts – minds blown.
Japan’s Quiet Gambit
- Nikkei 225 ticked up 0.4%, TOPIX nudged 1.0%, a small win.
- Bank of Japan stayed flat on rates, all while political drama rattles the yen.
- Yen leaned against the dollar, hovering around JPY 152, and could swing ups for rate hikes if the economy feels cozy.
China: A Tale of Two Trends
- Shanghai Composite fell 0.84%, CSI 300 slipped 1.68%, Hang Seng down 0.41%.
- Yet manufacturing PMI surged > 50 for the first time since April.
- Non‑manufacturing PMI also eased up a bit.
- Property market shined – new home sales jumped 7.1% YoY after September’s slump.
- Economic stimulus breathed new life into 2025 outlook; valuations may lean more on fundamentals.
Wrap‑Up: A World in Balance
Last week’s landscape was a delicate tightrope walk: investors kept their feet on the ground, but the winds of earnings, policy, and geopolitics still sway the market’s movements. Growth milk vs. value stock drips – the circus continues, folks!
