Dear Investor,
In October 2025, the US stock market showed resilience amid a mix of strong corporate earnings and macroeconomic developments. Key drivers included robust corporate earnings growth, with S&P 500 earnings expected to rise 10% year-on-year in the third quarter. This was supported by optimism about AI developments and favorable interest rate expectations from the Federal Reserve, which cut interest rates by 25 basis points. Economic indicators remained mixed: unemployment remained low at 4.3%, but job growth slowed, which may prompt the Fed to provide further support. The next Fed meeting is in December.
The Russell 2000 index rose by 1.8% in October. The ES Small Cap system recorded a gain of 1.07%, bringing the total gain for the year to 17.39%.
Viasat Inc shares performed best in the ESSC system last month. Peabody Energy Corporation, on the other hand, had a negative impact on performance.
November is generally a strong month for the stock markets. Hopefully this will be the case again this year.
Sincerely,
Henry van Ginkel