After touching all-time highs, US Equity Markets sold off following an escalation of trade and tariff rhetoric between the US and China and as the government shutdown continues. The S&P 500 declined 2.4% for the week and is now up 11.4% for the year. The Nasdaq fell 2.5% for the week to bring its gains for the year to 15.0%, while the Russell 2000 (small cap stocks) was down 3.3% for the week and is now up 7.3% for the year.
Global Equity Markets were also hit last week, as the increased tariff rhetoric offset a potential peace deal in the Middle East. Developed Markets dropped 2.0% for the week and are now up 22.1% for the year. Emerging Markets fell 0.6% for the week to bring its gains for the year to 27.0%.
Gold Prices set a record last week. The price of gold crossed $4,000/ozt for the first time in history last week, buoyed by geopolitical concerns and lower demand for the US Dollar among global investors. It also could be a signal that inflation may accelerate in the months ahead. Gold closed the week at $4,035.70/ozt, up 53% for the year.
Of Interest to Us
Earnings estimates for Q3 2025 have increased since July 1st. Earnings growth estimates have moved up to 8.8% for Q3 vs. 8.0% to start the quarter. Historically, this is unusual...since 2003, there have only been 5 other instances when estimates for Q3 have increased from the beginning of the quarter. Typically, they decline by ~3%. This could be a positive sign as we prepare for corporate reports.
Market Data
for the week ending 10/10/2025
If you have questions about the markets or would like to talk about your investments, please contact me at bfontana@invtrust.com or via phone at 704.940.3544.
Investors Trust Company helps its clients make sound financial decisions by providing strategic advice and asset management services with a high level of personalized attention. If we may help you or your clients with their investment management needs, please contact one of our Relationship Team members at trust@invtrust.com.
