October in review

October was another strong market for global equities. The S&P 500 delivered its sixth straight monthly gain, posting its 36th all-time high of 2025 in the process. The Nasdaq went one better, with its seven consecutive gains the longest streak since 2018. Much of this was underpinned by a broadly positive earnings season – especially from big tech – strong economic data and a one-year deal between China and the US to pause export controls on rare earths and chips. In Japan, the Nikkei had its strongest month since October 1990 as the new government led by Sanae Takaichi came to office.

However, there were wobbles along the way, notably in private credit and regional banks around the middle of the month, which filtered through into the banking sector and broader equity market. Wall Street’s Vix “fear index” briefly touched a six-month high on the back of the heavy sell-off in US regional bank shares, however this reduced sharply after remarks by Trump that suggested that Washington would overcome trade tensions with China. On the macroeconomic front, the Federal Reserve delivered a widely expected 25-basis-point rate cut following lower-than-expected inflation numbers but struck a cautious tone. Chair Powell said further easing was “not a foregone conclusion,” tempering expectations for another cut in December.

Source: Bloomberg as at 31 October 2025.