This Weekly Financial Markets Update reviews the top market headlines: Federal Reserve Holds Rates Steady, Tech Stocks Lead Month-End Sell-off, U.S. Economic Growth Accelerates in the Third Quarter
  • The Fed left rates unchanged at 3.75%-4.00%
  • The S&P 500 Index fell 1.8% on Friday for its worst day since June
  • U.S. GDP grew 3.4% in the third quarter

Top Three Market Headlines

Federal Reserve Holds Rates Steady: The Federal Reserve held interest rates unchanged at its October meeting, maintaining the federal funds target range at 3.75%-4.00% following a 25-basis point increase in September. Policymakers continued to characterize inflation as elevated but indicated that additional information would help determine the appropriate path for monetary policy. The Fed also upgraded its assessment of economic activity, describing the economy as expanding at a "strong pace," supported by resilient consumer spending, strong productivity growth, and robust capital investment. The decision passed by a 10-2 vote, with two policymaker dissents in favor of a 25-basis-point rate increase.

Tech Stocks Lead Month-End Sell-off: On the final trading day of October, tech stocks led the stock market's sell-off. The S&P 500 fell 1.8% for its worst day since June and the index closed out a third straight losing week. Fragility around AI dragged the Nasdaq composite down 2.9% while the blue chip Dow Jones Industrial Average fell 1.1%. Worries about whether the huge investment in AI by some of the world's largest companies will pay off and produce enough profit and productivity to make the investment worth it. High interest rates are also weighing on sentiment around the AI buildout as this could further slow the buildout.

U.S. Economic Growth Accelerates in the Third Quarter: The U.S. economy expanded at a 3.4% annualized rate in the third quarter, accelerating from 2.2% in the second quarter and exceeding expectations. Consumer spending remained a key source of strength, rising 3.8% during the quarter, while nonresidential business investment increased 12.7%, its strongest quarterly gain since the beginning of 2024. Investment, consumer spending, and government expenditures all contributed to overall growth, while a decline in exports partially offset those gains. The latest reading marked the strongest pace of U.S. economic growth since the third quarter of 2025.

As of October 30, 2026 Week Quarter-To-Date Year-To-Date One-Year
MSCI All Country World -0.29% -1.64% 11.18% 12.45%
S&P 500 -0.56% -0.87% 11.77% 12.41%
Russell 2000 1.30% 0.58% 14.37% 15.43%
MSCI EAFE 0.87% -0.74% 9.52% 13.27%
MSCI Emerging Markets -0.72% -8.05% 13.45% 13.24%
FTSE NAREIT Equity 1.21% 3.31% 14.27% 14.74%
Bloomberg Commodity -1.65% -0.08% 32.75% 37.20%
Bloomberg U.S. Aggregate 0.56% 2.44% -0.54% -0.15%

CNBC 10/29/2026, Associated Press — Business News 10/30/2026, Yahoo Finance 10/29/2026. Index returns from Bloomberg. Returns for periods greater than one year are annualized. Investment advisory services are offered by Gallagher Fiduciary Advisors, LLC ("GFA"), an SEC registered investment advisor that provides retirement, investment advisory, discretionary and independent fiduciary services. Registration as an investment adviser does not imply any specific level of skill or training and does not constitute an endorsement of the firm by the SEC. GFA is a limited liability company with Gallagher Benefit Services, Inc. as its single member. GFA may pay referral fees or other remuneration to employees of Arthur J. Gallagher & Co. or its affiliates or to independent contractors; such payments do not change our fee. Neither Arthur J. Gallagher & Co., GFA, their affiliates nor representatives provide accounting, legal or tax advice. GFA does not express an investment opinion regarding any specific commodity, sector or individual security. Unless otherwise expressly noted, the contents of this communication do not constitute securities or investment advice, nor should this communication be construed as an opinion regarding the appropriateness of any investment. The information provided cannot take into account all the various factors that may affect your particular situation, therefore you should consult your GFA consultant before acting upon any information or recommendation contained herein to discuss the ability of the information/recommendation for your specific situation.