Weekly Market Commentary - Nov. 3, 2025
Week In Review
A Federal Reserve rate cut, impressive technology earnings reports and a promising trade deal with
China were tailwinds for market sentiment and drove major U.S. stock market indices to another week of new heights. The FOMC lowered the federal funds rate by 25 basis points for the second time this year, bringing the benchmark interest rate to a range of 3.75% - 4.00%. While the move was widely expected, investor optimism was tempered at the post-meeting presser when Fed Chairman Jerome Powell acknowledged differing views and stated that “a further reduction in the policy rate at the December meeting is not a foregone conclusion.” Corporate earnings boosted market momentum as well. As of last week, 96% of S&P 500 technology companies that had reported results posted an earnings beat. 3 In particular, Apple, Amazon, Alphabet, and Microsoft had incredible numbers and reaffirmed the potential of the AI value chain. U.S. President
Donald Trump reached a one-year trade agreement with China that suspends export controls on rare earth elements, implements measures to halt the flow of fentanyl into the U.S. and resumes purchases of U.S. soybeans. In return, the U.S. will reduce tariffs on Chinese imports. The S&P 500 closed the week at an all-time high of 6,840, climbing +0.7%.
This Week
The government shutdown will continue to delay the release of economic data, but there are several
Federal Reserve officials scheduled to speak. The third quarter earnings season ramps up with 136 S&P 500 companies providing results, including AMD, Pfizer, McDonalds, and Realty Income. 4
Portfolio Themes
Despite some doubt regarding the odds of a Fed rate cut in December, the current Fed dot plot suggests further dovish monetary policy in 2026. That rate environment may favor dividend growth stocks. Simplicity offers dividend-paying stock portfolios that give attractive total return potential.
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Data: Unless otherwise noted, data for charts, graphs, and tables is sourced from YCharts. Portfolio Themes idea sourced from Columbia Threadneedle Investments.
1 Style box returns use various Russell indices tied to specific areas of the market cap (vertical) and style (horizontal) spectrums. Indices are not typically available for direct investment, are unmanaged, and do not incur fees or expenses.
2 Index Statistics: P/E Ratio – Displays the forecasted P/E ratio of the representative index ETF. Yield - Dividend-per-share divided by current share price. Table statistics are updated weekly. MSCI indices represent broad global and international equity markets. Indices are represented by iShares ETF proxies (IVW, IVV, IVE, ACWI, and ACWX).
3 FactSet.
4 FactSet. Past performance does not guarantee future results.
Weekly commentary and investment advisory services are provided by Simplicity Wealth, LLC a SEC Registered Investment Adviser. Registration does not imply a certain level of skill or training. The information provided is for informational purposes only and does not constitute any form of advice or recommendation. The information contained within has been obtained from various sources and is believed to be accurate at the time of publication.
