SFM Observer- October 2025

Glenn Sweeney |

SFM OBSERVER

October 2025 Recap

A CONCISE REVIEW OF THE MONTH IN THE INVESTMENT MARKETS

Issued: November 4, 2025

 

The Dow ended the month of October at 47,562, gaining 1,352 points, or 2.9%, as investors reacted positively to the Federal Reserve’s long-awaited decision to cut interest rates by 0.25%. The move, widely anticipated, marks the second rate cut.  Markets are hopeful that lower borrowing costs will help revive housing and consumer spending, both of which have cooled noticeably since midsummer. AI continues to dominate the investment markets and valuations continue to climb.

Corporate earnings were mixed. Tech leaders such as Microsoft and Amazon exceeded expectations, while traditional industrials and retailers posted softer results as consumers continued to pull back. Inflation is holding at 3%, though insurance and energy costs remain stubbornly high for many households.

Some interesting events from the month just passed:

  • Oil prices declined sharply, with crude slipping below $70 per barrel for the first time in nearly a year. Oversupply from OPEC and weaker global demand have kept downward pressure on energy markets.
  • The housing market picked up steam. Home sales rose after several months of declines.  Mortgage rates hovered a little above 6%, sparking some activity.
  • AI continues to dominate headlines. Alphabet announced a new AI infrastructure initiative aimed at bringing advanced computing power to smaller firms. Analysts expect this to accelerate adoption across a wider swath of industries.
  • The U.S. dollar weakened modestly following the Fed’s rate move, providing a small boost to U.S. exporters and multinational earnings.
  • Corporate stock buybacks remain at record levels. Through October, announced repurchases have topped $950 billion, putting 2025 on pace to surpass last year’s record.
  • Gold surpassed $4,000 an ounce for the first time in history.
  • The New York City office market is recovering, and tenants will sign new leases on more than 23 million square feet this year.  Accounting, media and technology companies are increasing their presence in Manhattan.
  • Social Security benefits will rise 2.8% next year.  Everyone needs a raise.

SFM CARES – Giving Back to Our Communities

This month, SFM CARES made contributions to SHARE OUTREACH, NAMI and NORTH COUNTRY MISSIONS as part of our ongoing commitment to strengthen families and protect residents across the state. Our team continues to support local initiatives that make a positive difference in the lives of those around us. Thank you to our clients and friends whose trust and partnership make these efforts possible.

Thank you for reading this issue of the SFM OBSERVER. If you have any comments or questions, please send us a reply. If you have a friend or associate who might enjoy the SFM OBSERVER, feel free to forward this email.

Until next month,

 

Glenn Sweeney CFA