The markets rose further this week, hitting new all-time highs across all four major indexes. This was most likely fueled by a combination of a cooling of U.S.-China trade tensions, strong earnings announcements, expectations of the Fed cutting rates next week, and a favorable CPI inflation report that was released on Friday. This week, President Trump announced that he will meet Chinese President Xi Jinping next week to discuss various trade deals. This meeting has been characterized as a high-risk, high-reward leadership meeting, as President Trump’s 90-day tariff truce with China is set to expire November 10th. Earlier this month, Beijing increased its restrictions on exports of rare earth minerals and technology, prompting President Trump to retaliate with potential 100% tariffs on Chinese goods that would go into effect November 1st. However, President Trump has recently displayed optimism that deals will be reached next week.
In economic data, weekly jobless claims increased to at least 232,000, up from 220,000 last week. Existing home sales increased 1.5% month-over-month in September – a seasonally adjusted annual rate of 4.06 million, meeting estimates. Falling mortgage rates are increasing home sales and improving housing affordability. Most notably this week was the release of the overdue September CPI inflation report. The report showed that prices rose by 0.3% last month, slower than expected, with estimates at 0.4%. However, annual price hikes for a variety of consumer goods have increased at the fastest pace so far this year. The impact of this report further solidifies the case for the Fed to cut rates next week. The odds of cutting rates in December as well are currently at 96%, according to the CME Group’s FedWatch. This CPI report is most likely the last official data report until the government shutdown is lifted.
In corporate news, this week marks the second week of the earnings season. Banks reported last week, and the larger ones posted excellent profits, led by JPMorgan Chase, Citigroup, and Bank of America. The two major companies that reported this week were Tesla and Netflix, both posting mixed results. Target announced on Thursday that it’s cutting 1,800 corporate jobs (8% of its corporate workforce), its first major layoff in a decade. This comes after Target has experienced four consecutive years of stagnant sales and a 65% stock decline since 2021. Compared to competitors such as Walmart, Target’s sales are less dependent on groceries and other necessities, which makes its overall growth more vulnerable. Nike made headlines this week by unveiling an innovation they call Project Amplify —the world’s first powered footwear system. It’s a device with an elastic cuff that attaches to the wearer’s calf, and a mechanical arm that extends downward and attaches to the back and bottom of the wearer’s shoe. The device is intended to augment natural lower leg and ankle movement, allowing everyday athletes to go a little farther and faster. Nike technicians are still developing it, with plans for a 2028 release.
In global news, we turn our attention to the Louvre in Paris. This past Sunday, around 9:30 a.m., four thieves were involved in breaking into the Apollo’s Gallery in the Louvre. The heist's blueprint involved them disguising themselves as construction workers in yellow and orange vests. This allowed them to park a truck with an extendable ladder on the Seine-facing side, giving them access to the second-floor balcony. Conveniently, this area of the building has only one camera, which happened to be facing the wrong way on this day. Upon arriving at the platform, they used a high-tech angle cutter to cut through the window to access the gallery. While this triggered alarms, they quickly smashed two display cases, gathered the prized jewelry, escaped back down the ladder, and sped off on motorcycles. The entire heist only took seven minutes, but perhaps what is just as stunning is the heist’s estimated value of the Napoleonic French Crown jewels: $102 million, making it the largest heist of the decade. Although the thieves have not been found, evidence is mounting against them after they accidentally dropped one jewel and left behind some items, most notably gloves and a helmet.
Ryan Motsinger
