Investment update
Weekly insight into the marketplace.
October 20 to 24, 2025
Equity markets rose despite uncertainty
Stock markets were back within reach of record highs on Monday as investors braced for a busy week of corporate earnings reports. Gold and healthcare stocks helped Canada’s TSX advance 1.02%. The tech-heavy Nasdaq led the Wall Street benchmarks higher with a 1.4% gain. Shares of Apple rallied following reports that sales of the newest iPhone model were off to a strong start. On Tuesday, the Dow climbed 0.47% after the release of positive financial results from blue-chips 3M and Coca-Cola. The S&P 500 was flat while the Nasdaq dipped 0.16%. The TSX took a 1.73% hit as a sharp pullback in prices for precious metals weighed on the resource-heavy index. Oil prices gave the TSX a boost on Wednesday, helping it notch a 0.32% gain with support from the energy sector. The major Wall Street indexes all closed lower: the Nasdaq tumbled 0.93%, the Dow fell 0.71% and the S&P 500 shed 0.53% as disappointing tech-company earnings, the ongoing U.S. government shutdown and U.S.-China trade tensions weighed on sentiment. On Thursday, news that U.S. President Trump and Chinese President Xi Jinping were planning to meet on October 30 helped improve sentiment. All the major U.S. indexes closed higher, with the Nasdaq’s 0.89% return winning the day. Oil prices continued to provide a tailwind to the TSX which advanced 0.55% after the U.S. announced sanctions on Russian producers. The week ended on a positive note, with better-than-expected U.S. inflation data helping the Wall Street benchmarks close at record levels on Friday. The TSX also rose, with support from the tech sector, closing just below its own record level.
Corporate earnings were in focus
With key statistics harder to come by due to the U.S. government shutdown, data-hungry investors leaned heavily on corporate earnings updates for economic insights. Nearly 20% of companies listed on the S&P 500 released financial results last week, along with reports from big-tech companies and some of Canada’s corporate heavyweights. On Tuesday, shares of General Motors rose 15% and powered gains on the S&P 500 after the automaker reported better-than-expected financial results and reduced its forecast for tariff-related costs. Shares of streaming giant Netflix, which were up 40% year-to-date as of Tuesday’s close, fell 7% on Wednesday after its financial results missed expectations. Tesla – the first of the Magnificent Seven to report this quarter – released results after market close on Wednesday that showed profits fell 31% in the most recent quarter despite record sales volumes. In Canada, Rogers Communications beat third-quarter profit estimates as its sports-related ownership interests, including the Toronto Blue Jays, added to media revenue.
Data showed U.S. inflation rose in September
The U.S. Bureau of Labor statistics released its Consumer Price Index (CPI) report for September on Friday, giving officials at the Federal Reserve a final look into inflation trends before its policy decision on October 29. The release was delayed from October 15 due to the government shutdown; however, the Bureau is legally required to produce the report on a one-off basis due to the vital role CPI data plays in adjusting social security payments. The report showed the annual inflation rate increased less than expected last month, rising to 3% from 2.9% in August. While the reading is above the Federal Reserve’s 2% target, the slower-than-expected increase reinforced investor belief that policy-makers will cut interest rates next week.
The stock and bond market*
| Index | Close | Week | YTD |
|---|---|---|---|
| S&P/TSX Composite | 30,353.07 | 0.81% | 22.75% |
| Dow Jones Industrial Avg. | 47,207.12 | 2.20% | 10.96% |
| S&P 500 Index | 6,791.69 | 1.92% | 15.47% |
| Nasdaq Composite | 23,204.87 | 2.31% | 20.17% |
| 10-yr Canadian Bond Yield | 3.08% | -0.01% | -0.15% |
| 10-yr U.S. Treasury Yield | 4.02% | 0.00% | -0.56% |
| WTI Crude Oil (US$/barrel) | 61.50 | 7.61% | -14.25% |
| Canadian Dollar | US$0.71 | 0.15% | 2.68% |
Prime Rate 4.70 % |
|||
*Weekly performance ending October 24, 2025. Sources: Morningstar Direct, Bank of Canada, U.S. Department of the Treasury and CME Group
A professionally managed portfolio provides advantages in an uncertain economic environment. No matter the news headlines or market conditions, a professionally managed portfolio comes with one major benefit: diversification. With a diverse portfolio, you have access to several different asset classes, which lessens your risk if one sector suffers heavy losses. Portfolio managers have the flexibility and knowledge to adjust allocations when market conditions change. If you have questions about your investments, a Co-operators financial representative is always ready to help.
Bank of Canada and U.S. Federal Reserve interest-rate announcements (October 29): In their September policy updates, the Bank of Canada and the Fed each lowered their policy rates by 25 basis points, leaving the Bank of Canada’s rate at 2.5% and the Fed’s target range at 4% to 4.25%. Each central bank is expected to announce further cuts on Wednesday.
Circle these dates
November 27: U.S. markets closed for Thanksgiving Day
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The commentary in this report is based on current market conditions and market media sources available to the public and may change without prior warning at any time. The forecasts provided herein are not guarantees of future performance and include risks, uncertainty and assumptions. While Co-operators Life Insurance Company (“Co-operators”) believes these assumptions are reasonable, there is no guarantee they will be confirmed. This report is not a guarantee of future investment performance, nor should undue reliance be placed on this report. This report is provided as a general source of information for a specific point in time and should not be considered solicitation to buy or sell any investment. Nothing contained in this report constitutes investment, legal, tax or other advice. The content in this report should not be relied upon in making an investment or other decision, and individuals should obtain relevant and specific professional advice and read the terms and conditions contained in the relevant offering documents carefully before any investment decision is made. Co-operators is not responsible for any loss or damage as a result of reliance on the information contained in this report. Co-operators makes no representations or warranties as to the information contained herein and does not guarantee its accuracy, timeliness, completeness or usefulness. Co-operators is committed to protecting the privacy, confidentiality, accuracy and security of the personal information it collects, uses, retains and discloses in the course of conducting business. Please visit cooperators.ca/privacy for more information. Co-operators® is a registered trademark of Co-operators Group Limited and is used with permission. Investing in your future. Together.TM is a trademark of Co-operators Group Limited. If you are a client who has received this, and you have questions or want to discuss your investments, please contact your Financial Advisor.
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