This Weekly Financial Markets Update reviews the top market headlines: Fed Cuts KEY Policy Rate Again, U.S. Home Prices Rise Modestly in August, U.S. and China Strike a Trade Truce
  • The Federal Reserve cut the federal funds rate target range to 3.75% - 4.00%
  • The S&P Cotality Case-Shiller 20-City Composite Home Price Index rose 0.2% in August
  • U.S. tariffs on Chinese products currently stand at 47%

Top Three Market Headlines

Fed Cuts Key Policy Rate Again: The Federal Reserve last week reduced the target range for its policy interest rate, the federal funds rate, by a quarter-percentage point. This was the second cut of this magnitude by the central bank in the last six weeks, leaving the target range at 3.75% - 4.00%, its lowest level since late 2022. Federal Reserve Chair Jerome Powell noted that the decision reflects an increase in downside risks to employment in recent months. In a related move, the Fed also announced it will cease its effort to reduce the securities holdings on its balance sheet — referred to as quantitative tightening — due to tightening liquidity in financial markets.

U.S. Home Prices Rise Modestly in August: U.S. home prices in ticked up in August for the first time in six months, as the S&P Cotality Case-Shiller 20-City Composite Home Price Index rose 0.2% (seasonally-adjusted) from the prior month. Despite the monthly gain, the year-over year growth rate decelerated to 1.6%, down from 1.8% in July and the lowest rate in two years. On an annual basis, New York City led the top 20 cities with a gain of 6.1%, followed by Chicago and Cleveland with gains of 5.9% and 4.7%, respectively. On the other hand, Sunbelt regions saw continued weakness, with prices in Tampa falling 3.3%, followed by Phoenix and Miami, which both saw a decrease of 1.7%.

U.S. and China Strike a Trade Truce: In a move to de-escalate recent trade tensions, President Trump and Chinese leader Xi Jinping agreed at a summit in South Korea last week to postpone various restrictive trade measures their respective countries had previously announced. China accepted a one-year delay on applying export restrictions on rare earth minerals, while the U.S. suspended rules that would have expanded U.S. export controls. Additionally, the U.S. cut fentanyl-related tariffs and delayed planned 100% tariffs on Chinese goods as China agreed to resume purchases of U.S. soybeans. The moves left the level of tariffs the U.S. has applied on Chinese goods at 47% overall.

As of October 31, 2025 Week Quarter-To-Date Year-To-Date One-Year
MSCI All Country World 0.50% 2.24% 21.09% 22.64%
S&P 500 0.72% 2.34% 17.52% 21.45%
Russell 2000 -1.35% 1.81% 12.39% 14.41%
MSCI EAFE -0.45% 1.18% 26.61% 23.03%
MSCI Emerging Markets 0.89% 4.18% 32.86% 27.91%
FTSE NAREIT Equity -2.84% -1.61% 2.82% -0.68%
Bloomberg Commodity 0.00% 2.89% 12.54% 14.15%
Bloomberg U.S. Aggregate -0.57% 0.62% 6.80% 6.16%

Federal Reserve Board 10/29/25, S&P Global 10/28/2025. Financial Times 10/29/25, Barron's 11/3/2025. Data from Morningstar Direct. 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 suitability of the information/recommendation for your specific situation.