Weekly Market Recap: Earnings Momentum and Easing Trade Tensions Lift Markets Ahead of Fed Decision

Market Overview

U.S. equities logged another weekly gain as investors cheered positive earnings and signs of thawing trade tensions. The S&P 500 rose 1.93%, the Dow gained 2.24%, and the Nasdaq advanced 2.31%, with all major indices posting strong weekly performance. Tech, energy, and industrials led the charge, while defensive sectors like utilities and consumer staples lagged.

Momentum picked up late in the week after the delayed September CPI report showed inflation cooling more than expected, reinforcing bets for a rate cut at the upcoming Federal Open Market Committee (FOMC) meeting.

Earnings also played a key role in driving sentiment. The first of the “Magnificent Seven” companies reported mixed results — Tesla posted record deliveries but missed on profits, Intel beat estimates with strong guidance, and Netflix dipped on softer subscriber growth. Broader market participation improved, suggesting investor confidence beyond the tech-heavy leaders.

Internationally, Europe’s STOXX 600 climbed amid strong financial sector earnings and firmer oil prices following new U.S. sanctions on Russian energy companies. France’s CAC 40 reached its first record high since May despite a credit downgrade, while U.K. equities rose as inflation data surprised to the downside. Across Asia, markets rallied on easing trade tensions and political stability — Japan’s new pro-growth government boosted sentiment, and China’s Fourth Plenum emphasized economic resilience and tech self-reliance.

Fixed income markets rallied as Treasury yields slipped for a fifth straight week, with the 10-year Treasury yield ending at 4.02%. Bond strength reflected tempered growth and inflation expectations alongside improved demand dynamics. In commodities, oil rebounded on sanctions-driven supply concerns, while gold’s nine-week winning streak snapped, marking its sharpest weekly drop in years.

Federal Reserve Insights & Economic Roundup

The September Consumer Price Index confirmed that inflation pressures continue to cool — core prices rose just 0.2%, below expectations, while headline inflation held steady near 3%. Falling housing costs, expanding multifamily supply, and lower immigration-driven demand contributed to easing shelter inflation.

Meanwhile, the Fed’s Beige Book highlighted uneven pricing pressures across industries, with some businesses absorbing tariff costs to maintain market share. Analysts now expect the Fed to continue its easing cycle into 2026, contingent on sustained disinflation and softer consumer spending.

Fiscal and monetary concerns remain in focus as large budget deficits and the ongoing government shutdown pose risks to growth. However, lower yields and improved Treasury market stability have supported near-term investor confidence.

The Week Ahead

A busy week lies ahead with a pivotal FOMC rate decision and key economic reports:

Monday: Durable Goods Orders (Sep), Dallas Fed Manufacturing (Oct)

Tuesday: FHFA House Price Index (Aug), Consumer Confidence (Oct)

Wednesday: Pending Home Sales (Sep), FOMC Rate Decision (Oct 29)

Thursday: Initial Jobless Claims, 3Q GDP (first reading), Core PCE Price Index (3Q)

Friday: Personal Income & Spending (Sep), Employment Cost Index (3Q), Chicago PMI (Oct)

Investors will be watching for confirmation of a rate cut and further signals on the Fed’s growth outlook. Corporate earnings will remain in focus, with results from major tech and industrial names set to guide sentiment into November.