November 1, 2025 Market Update

Market Recap. An “Amazing” Week

The U.S. stock market rallied at the start of the week, boosted by better-than-expected inflation data and strong corporate earnings reports from the week before.  The S&P 500 hit a new record high of about 6,890 on Tuesday.  Much of those gains were surrendered mid-week following the Federal Reserve’s latest rate decision, announced on Wednesday.  Mixed earnings from several mega-cap technology companies also added volatility.

The Fed delivered the expected 25-basis-point rate cut, but comments from Chairman Powell after the meeting raised doubts about the likelihood of another cut in December.  Bond yields rose following Wednesday’s announcement, and bond prices fell in response.  Vanguard’s Total Bond Market ETF (BND) was down 0.59% percent for the week.

Perhaps more surprising was Mr. Market’s muted reaction to President Trump’s “amazing meeting” with China’s President Xi Jinping.  The meeting, which investors had hoped might ease trade tensions and bolster confidence in the global growth outlook, had only a modest impact on trading, as agreements to agree are no longer enough to move the needle.

Market Performance

Market Commentary - The Housing Market Takes a Breather

According to a Piper Sandler Case-Shiller report released this past Wednesday, national home prices rose just 0.2% month-over-month (seasonally adjusted) in August, while unadjusted prices fell 0.3%, marking the second consecutive monthly decline.  Year-over-year growth was only 1.5%, a sharp slowdown from the double-digit increases seen during the pandemic years.  Midwest and Northeast cities such as New York and Chicago are still climbing, but the Sun Belt and West Coast have cooled.

Renters are finding better deals too.  A recent Wall Street Journal article noted that rental vacancies are climbing and landlords are offering more concessions, giving tenants leverage in lease negotiations.  The shift hints at a rental market slowly finding balance; one that isn’t cold, but no longer on the boil.

With mortgage rates edging lower, rents easing, and home prices flattening, the urgency that defined house hunting the past few years has faded.  Waiting through the winter in hopes that mortgage rates fall further and demand remains soft could be rewarded, though a well-priced opportunity on a dream home may still be too good to pass up. 

In Case You Missed It - Nvidia Hits $5 Trillion Mark 

Chip-maker Nvidia made history last week by becoming the first public company with a market value of $5 trillion.  That makes the company worth more than the entire annual economic output of Japan