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Federal Reserve Cuts Interest Rates
The Federal Open Market Committee (FOMC) cut interest rates by 25 basis points to a range of 3.75-4.00% on October 29, 2025, marking the first cut in three years. Major U.S. stock indexes were affected, with the small-cap Russell 2000 declining further, while the Nasdaq and S&P 500 saw some recovery.
Fed Chair Jerome Powell stated that a rate cut in December is “not a foregone conclusion,” emphasizing that decisions will be data-driven, despite the government shutdown affecting data availability. Additionally, starting December 1, the Fed will halt balance sheet runoffs and reinvest expiring mortgage-backed securities into T-bills.
Earnings Reports Highlight Key Performers
Microsoft reported earnings of $4.13 per share on $77.67 billion in revenues, surpassing estimates of $3.65 and $74.96 billion, respectively. Alphabet’s earnings hit $2.87 per share, including a one-time charge, with revenues of $87.47 billion. Meta Platforms reported earnings of $7.25 per share, exceeding expectations of $6.61, while Starbucks missed bottom-line estimates with earnings of 52 cents per share.
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