This Weekly Financial Markets Update reviews the top market headlines: Rising Layoffs and Slow Hiring Dim Job Market, Mixed Results in the Latest ISM Report, U.S. Home Prices Continue Softening
  • Planned layoffs rose by 16% in the 3rd quarter versus last year
  • The ISM Services Index registered 50.0% in September
  • The S&P Cotality Case-Shiller 20-City Composite Home Price Index fell for the 5th straight month in July

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Top Three Market Headlines

Rising Layoffs and Slow Hiring Dim Job Market: A report issued last week by outplacement services firm Challenger, Gray & Christmas indicated that announced layoffs by U.S. companies totaled 202,118 in the third quarter. This was the highest third quarter total since 2020 and was up 16% from the same period last year. On a year-to-date basis, employers have announced nearly one million cuts, the fastest pace in five years, led by government, technology, and retail firms. At the same time, hiring plans have hit their lowest levels since 2009, totaling 204,939 jobs year-to-date through September.

Mixed Results in the Latest ISM Report: The Institute for Supply Management (ISM) reported last week that its Manufacturing PMI Report, based on surveys of business executives, registered 49.1% in September. While this was slightly better than the prior month's reading of 48.7%, it remained below the 50% threshold distinguishing expansion of activity from contraction for the seventh straight month. Meanwhile, the ISM Services PMI Report indicated that business activity was flat across the services sector during the month, with a reading of 50.0%, the lowest level in four months. According to the report, employment conditions have contracted across the services sector for fourth months in a row.

U.S. Home Prices Continue Softening: U.S. home prices showed further signs of cooling in July, with the S&P Cotality (fka CoreLogic) Case-Shiller 20-City Composite Home Price Index falling 0.1% (seasonally adjusted), the fifth straight monthly decline. Half of the 20 metropolitan areas measured experienced monthly price declines in July, led by Las Vegas (-0.89%) and Phoenix (-0.85%). On a year-over-year basis, prices rose just 1.8% across the 20 markets, the slowest pace in two years. Prices declined versus the prior year in seven cities, with the largest declines seen in Tampa (-2.81%), San Francisco (-1.92%) and Miami (-1.30%).

As of October 3, 2025 Week Quarter-To-Date Year-To-Date One-Year
MSCI All Country World 1.72% 0.87% 19.47% 19.61%
S&P 500 1.11% 0.43% 15.32% 19.38%
Russell 2000 1.78% 1.64% 12.20% 15.14%
MSCI EAFE 2.70% 1.59% 27.13% 19.15%
MSCI Emerging Markets 3.67% 2.07% 30.18% 19.53%
FTSE NAREIT Equity 0.74% 0.04% 4.55% -0.02%
Bloomberg Commodity 0.31% 0.73% 10.17% 7.53%
Bloomberg U.S. Aggregate 0.46% 0.24% 6.39% 3.43%

ISM 9/30/2025 & 10/3/2025, Challenger, Gray & Christmas 10/2/25, S&P Global 9/30/2025, Thomson Reuters 10/2/25. 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.