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Markets & Economy

The Economy: October 2015

Market Comments: As of October 2015

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After a September swoon, global stock markets rallied strongly in October. The S&P 500 gained 8.44% during the month, and the small-cap Russell 2000 was up 5.63%. International and emerging markets participated as well, increasing 7.82% and 7.13%, respectively. As expected, the Federal Reserve did not make any changes to monetary policy after this month’s meeting, but did signal a December move is still a possibility. Bond interest rates moved marginally higher post-Fed announcement, with the 10 Year Treasury now yielding 2.15%. The U.S. government reached a 2 year budget agreement, so the near term risk of self-inflicted economic wounds due to politics has been removed. Overseas, the Bank of Japan and European Central Bank have hinted at further monetary easing, which has slightly weakened their currencies versus the U.S. dollar.