Weekly Market Recap: October 13-19, 2025
Global markets rebounded last week after a sharp drop the week before. Strong economic data, calmer central bank messaging, and easing US-China trade tensions helped lift stocks. Oil continued to fall and crypto retraced after last week’s decline.
Equity Markets
- Dow Jones: +1.6% (YTD +8.6%)
- S&P 500: +1.7% (YTD +13.3%)
- NASDAQ: +2.1% (YTD +17.4%)
- MSCI EAFE: +1.6% (YTD +23.9%)
- 10-Year US Treasury Yield: 4.00% (-0.1%)
Markets picked up midweek as US-China trade tensions eased. President Trump said extreme tariffs on Chinese goods were unlikely and announced a meeting with President Xi later this month, which helped improve investor confidence.
Macroeconomics
Key reports showed steady growth:
-
China: Exports grew 8.3% year-over-year and imports rose 7.4%, both beating expectations. Inflation improved slightly, suggesting that demand at home and abroad remains relatively strong despite earlier trade tensions.
-
Australia: The NAB Business Confidence index increased to 7, showing that businesses are cautiously optimistic. The Reserve Bank of Australia maintained its patient approach, keeping interest rates steady and focusing on data before making any changes.
-
UK: Unemployment stayed steady at 4.8%, while GDP rose 0.1% month-over-month, signaling slow but ongoing economic growth. Household and business activity remain stable, giving a picture of steady recovery.
-
Germany: The ZEW Economic Sentiment index came in at 39.3, still positive, indicating that investors and analysts remain generally confident about Germany’s economic outlook despite external pressures.
-
US: Fed Chair Powell delivered remarks suggesting that monetary policy will remain steady. He acknowledged that growth has slowed somewhat but gave no indication of tightening further, aiming to keep markets stable while monitoring inflation and economic trends.
Crypto Markets
- Bitcoin: -5.6% to $108,700
- Ethereum: -4.2% to $3,984
Crypto stayed under pressure as some traders pulled back. However, activity from long-term holders stayed steady, showing the market is holding up despite short-term ups and downs.
Global Overview
Asian and European markets rose early in the week thanks to strong trade numbers and calmer trade talks. Commodities, including oil, fell as supply stayed steady and geopolitical risks eased.
Conclusion
Markets recovered as trade fears eased and economic data looked steady. Equities returned cautiously, bonds gained slightly and crypto retraced from previous highs. While confidence improved, investors remain alert to potential volatility as mid-October unfolds.
Disclaimer: This content is for informational purposes only and is not financial advice.
