Market Thoughts October 2025

September was another positive month for markets, as the S&P 500, Dow, and Nasdaq set new record highs. The international story was similar, with developed and emerging markets gaining for the month. Short-term interest rates also fell in September, as the Fed resumed cutting rates at its mid-month meeting. Markets anticipate one or two additional rate cuts by year-end.

Turning to the economy, second-quarter GDP growth was revised up from earlier estimates of 3.3 percent to 3.8 percent, driven by increased personal consumption growth. But there has been a slowdown in hiring over the past few months, and the unemployment rate has ticked up to its highest level since August 2021.

So, what other risks should investors be aware of? Stay tuned to find out.