U.S. equities hit record highs in October, with the S&P 500 and Dow Jones up. Market breadth narrowed, value indices lagged. Fed delivered a rate cut and plans to end QT. Q3 earnings saw 10.7% growth for S&P 500. Trade tensions eased, tech sector thrived. Sector performance varied, with semiconductors leading.

At the small-cap level, Healthcare surged, Nasdaq Biotech had best return. Staples and Discretionary declined. 5 sectors down 10%+. Corporate earnings strong, with 83% positive earnings surprise. Forward P/E ratio high. Market outlook bullish, seasonality favors equities. Historical trends suggest potential gains ahead.

Fed rate cut and strong earnings boost market sentiment. Trade tensions ease, tech sector thrives. Sector performance varied, semiconductors lead. Earnings show positive surprise, strong growth. Market outlook bullish, seasonality favors equities. Historical trends suggest potential gains ahead.

Read more at Nasdaq: October 2025 Review and Outlook