Peakfolio Team
Oct 13, 2025
Between October 6 and October 13, markets surged as softer inflation data boosted hopes that the Federal Reserve may soon pivot toward a more neutral stance.
The latest CPI report showed headline inflation easing more than expected, sparking a wave of buying across equities and bonds alike. The S&P 500 rose over 2% for the week, with growth stocks leading the charge. Technology, consumer discretionary, and communication services all outperformed, while defensive sectors lagged. Treasury yields retreated from multi-month highs, providing additional relief to rate-sensitive assets.
Investor sentiment, which had been cautious entering October, improved meaningfully as the data revived expectations for potential rate cuts early next year. Analysts noted that while challenges remain — including uneven global growth and lingering energy price volatility — the latest reports suggest inflation is moving firmly in the right direction. Markets appear ready to embrace a more optimistic narrative as the fourth quarter gains momentum.