CPI Report Spurs Broad Market Rally
Markets continued to rally last week as inflation data surprised to the downside. The Consumer Price Index (CPI) showed no monthly increase in October, while core CPI, which excludes food and energy, rose only 0.2%. Both measures came in below expectations.
The S&P 500 gained 2.2%, the NASDAQ advanced 2.4%, and the Dow rose 1.9%. Investor sentiment improved as inflation data reinforced the idea that the Federal Reserve may not need to raise rates further.
Treasury Yields Move Lower Again
The 10-year Treasury yield continued its retreat, ending the week at 4.44%. This trend has supported both equities and interest-sensitive sectors like real estate, which rebounded after lagging earlier in the year.
As the yield curve flattens and volatility eases, markets are reassessing valuations in light of lower rate expectations.
Sector Rotation Highlights Changing Market Tone
Financials and real estate were among the week’s top performers. Small caps and technology also maintained momentum, while energy stocks declined as oil prices fell to their lowest level since early summer.
International developed markets posted moderate gains, while emerging markets were mixed amid currency and commodity pressures.
Alphastar CIO Tony Parish noted:
“This week’s CPI print supported growing sentiment that the Fed may stay on hold, which helped drive risk appetite,” noted Tony Parish, CIO at Alphastar.
Here are three timely considerations for investors:
-
Easing Inflation May Reshape Policy Path
The softer CPI reading supports the view that the Fed may remain on hold. Future data will be key to shaping expectations for 2026.
-
Falling Yields Provide Breathing Room for Equities
As long-term yields decline, rate-sensitive sectors such as real estate and financials may benefit. This environment may favor rebalancing toward underperformers.
-
Energy and Commodities Face Near-Term Headwinds
Weaker oil prices and mixed global demand may weigh on commodity-linked sectors. Investors should monitor these dynamics as year-end approaches.
Final Thoughts
Last week’s CPI data and bond market movement gave equities a boost as investors weighed the implications for future monetary policy. As inflation continues to moderate, market participants appear more willing to take on risk.
As Tony Parish summarized:
“Inflation’s cooling trend has helped ease policy pressure, and markets are responding to the shift in tone.”
READ THE FULL REPORT
Disclosure:
This blog post is for informational purposes only and should not be considered investment advice. Past performance does not guarantee future results. All data is as of November 17, 2025. Please consult with a qualified financial professional for personalized advice.
Inflation Cools, Markets Climb: Week of November 17, 2025
CPI Report Spurs Broad Market Rally
Markets continued to rally last week as inflation data surprised to the downside. The Consumer Price Index (CPI) showed no monthly increase in October, while core CPI, which excludes food and energy, rose only 0.2%. Both measures came in below expectations.
The S&P 500 gained 2.2%, the NASDAQ advanced 2.4%, and the Dow rose 1.9%. Investor sentiment improved as inflation data reinforced the idea that the Federal Reserve may not need to raise rates further.
Treasury Yields Move Lower Again
The 10-year Treasury yield continued its retreat, ending the week at 4.44%. This trend has supported both equities and interest-sensitive sectors like real estate, which rebounded after lagging earlier in the year.
As the yield curve flattens and volatility eases, markets are reassessing valuations in light of lower rate expectations.
Sector Rotation Highlights Changing Market Tone
Financials and real estate were among the week’s top performers. Small caps and technology also maintained momentum, while energy stocks declined as oil prices fell to their lowest level since early summer.
International developed markets posted moderate gains, while emerging markets were mixed amid currency and commodity pressures.
Alphastar CIO Tony Parish noted:
Here are three timely considerations for investors:
Easing Inflation May Reshape Policy Path
The softer CPI reading supports the view that the Fed may remain on hold. Future data will be key to shaping expectations for 2026.
Falling Yields Provide Breathing Room for Equities
As long-term yields decline, rate-sensitive sectors such as real estate and financials may benefit. This environment may favor rebalancing toward underperformers.
Energy and Commodities Face Near-Term Headwinds
Weaker oil prices and mixed global demand may weigh on commodity-linked sectors. Investors should monitor these dynamics as year-end approaches.
Final Thoughts
Last week’s CPI data and bond market movement gave equities a boost as investors weighed the implications for future monetary policy. As inflation continues to moderate, market participants appear more willing to take on risk.
As Tony Parish summarized:
READ THE FULL REPORT
Disclosure:
This blog post is for informational purposes only and should not be considered investment advice. Past performance does not guarantee future results. All data is as of November 17, 2025. Please consult with a qualified financial professional for personalized advice.