Weekly Market Insights | Trade Concerns Halt Stock Rally

Stocks fell last week amid concerns about trade with China, following an unsteady rally to record highs over the first half of the week.

The Standard & Poor’s 500 Index fell 2.43%, while the Nasdaq Composite Index declined 2.53%. The Dow Jones Industrial Average slid 2.73%. The MSCI EAFE Index, which tracks developed overseas stock markets, slipped 1.64%.^1,2

Stocks Set Highs Before Friday’s Drop

Coming into Friday's session the S&P 500 had been up on the week, having just reached a new intraday high on Thursday of 6,764.58. Gains were erased on Friday after President Donald Trump said he is considering "a massive increase" in tariffs on Chinese products coming into the US. Trump also indicated he might call off a planned meeting set for later this month with Chinese President Xi Jinping.

All but two sectors in the S&P 500 posted weekly declines. The energy sector had the largest weekly drop, falling 4%, followed by declines of 3.3% each in consumer discretionary and real estate. Materials lost 3.1% while financials and industrials shed almost 3% each. Technology and communication services fell more than 2% each while health care was down 1.9%.

The energy sector's drop came as crude oil futures also fell on the week. Every component of the sector fell, led by an 11% loss in shares of APA Corp. (APA) and a 9.6% decline in shares of Halliburton (HAL).

Homebuilder D.R. Horton (DHI) had the hardest-hit stock in consumer discretionary, falling 13%. Evercore ISI downgraded its investment rating on the stock to in line from outperform and reduced its price target to $169 each from $185.

In real estate, Alexandria Real Estate Equities (ARE) and CoStar Group (CSGP) led the declines, shedding 12% and 11%, respectively.

The two sectors that managed to stay in positive weekly territory were utilities, up 1.4%, and consumer staples, up 0.6%.

NextEra Energy (NEE) was the best performer in utilities, rising 4.1%. The stock received price target increases from analysts at Seaport Global and HSBC this week.

The consumer staples sector, meanwhile, was boosted by a 5.7% jump in the shares of PepsiCo (PEP). The beverage company reported better-than-expected fiscal third-quarter results and issued an improved full-year earnings outlook amid easing foreign-exchange headwinds.

This Week: Key Economic Data

Monday: Philadelphia Fed President Anna Paulson speaks.

Tuesday: Small Business (NFIB) Optimism Index. Fed governors Michelle Bowman and Christopher Waller, and Boston Fed President Susan Collins speak.

Wednesday: Atlanta Fed President Raphael Bostic, and Fed governors Stephen Miran and Christopher Waller speak. Fed Beige Book.

Thursday: Retail Sales. Producer Price Index (PPI). Weekly Jobless Claims. Business Inventories. Home Builder Confidence Index. Richmond Fed President Tom Barkin, and Fed governors Michelle Bowman, Stephen Miran, and Christopher Waller speak.

Friday: Housing Starts. Building Permits. Import Prices. Industrial Production. Capacity Utilization.

^{Source: Investors Business Daily - Econoday economic calendar; October 10, 2025. The Econoday economic calendar lists upcoming U.S. economic data releases (including key economic indicators), Federal Reserve policy meetings, and speaking engagements of Federal Reserve officials. The content is developed from sources believed to be providing accurate information. The forecasts or forward-looking statements are based on assumptions and may not materialize. The forecasts also are subject to revision.}

This Week: Companies Reporting Earnings (Ramping-up starting with the Financial Sector / Banks this week)

Tuesday: JPMorgan Chase & Co. (JPM), Johnson & Johnson (JNJ), Wells Fargo & Company (WFC), The Goldman Sachs Group, Inc. (GS), BlackRock (BLK), Citigroup Inc. (C)

Wednesday: Bank of America Corporation (BAC), Morgan Stanley (MS), Abbott Laboratories (ABT), The Progressive Corporation (PGR), Prologis, Inc. (PLD), The PNC Financial Services Group, Inc. (PNC)

Thursday: The Charles Schwab Corporation (SCHW), Intuitive Surgical, Inc. (ISRG), Interactive Brokers Group, Inc. (IBKR), Marsh & McLennan Companies, Inc. (MMC)

Friday: American Express Company (AXP)

^{Source: Zacks, October 10, 2025. Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Companies may reschedule when they report earnings without notice.}

“A pessimist sees the difficulty in every opportunity; an optimist sees the opportunity in every difficulty.”

– Winston Churchill

Is an Offer in Compromise Too Good to be True?

An Offer in Compromise is an agreement between a taxpayer and the IRS that settles a tax debt for less than the total amount owed; this is a genuine service offered by the IRS. The problem arises when "OIC mills" promise things they can't do. 

These OIC mills encourage people to hire their company to file an OIC application, even though the taxpayer may not qualify. They often charge significant fees and waste your time and money.

Taxpayers who qualify for an OIC can get the same deal working directly with the IRS without the extra fees. Before hiring a company to file an OIC on your behalf, check the IRS website to see if you pre-qualify for an OIC. The site also provides resources to help you understand the process.

This information is not a substitute for individualized tax advice. Please discuss your specific tax issues with a qualified tax professional. 

Tip adapted from IRS¹⁰

Create a Morning Routine That You Love

The first hour of your morning can dictate your productivity for the rest of the day, so it's worth investing in a morning routine you love. How do some of the most successful people spend the first few hours of their day? Here are a few tips:

• Don't check your email for the first hour of your workday.
• Take a moment to reflect on the things you're grateful for; this will help set a positive tone for your day. 
• Mark Twain famously said that if you eat a live frog first thing in the morning, you've got it behind you for the rest of your day. Consider doing your most challenging work first thing in the morning.
• Engage in some gentle movement, such as going for a walk, stretching, or practicing yoga.

What are some of your favorite morning rituals?

Tip adapted from Fast Company¹¹

A father tells his young son, “I will pay you $6.00 per hour for the 6 seconds you took to wash your hands before dinner.” So, how much does the boy earn for these 6 seconds of effort?

Last Week's Riddle: It flies, but has no wings. It slips away, but cannot be held in the hand. What is it?
Answer: Time.

Antarctic seals
South Georgia Island, Antarctica

Footnotes and Sources

^{1. WSJ.com, October 10, 2025}

^{2. Investing.com, October 10, 2025}

^{3. CNBC.com, October 6, 2025}

^{4. CNBC.com, October 8, 2025}

^{5. CNBC.com, October 9, 2025}

^{6. WSJ.com, October 10, 2025}

^{7. WSJ.com, October 10, 2025}

^{8. WSJ.com, October 10, 2025}

^{9. WSJ.com, October 9, 2025}

^{10. IRS.gov, May 22, 2025}

^{11. Fast Company, June 11, 2025}

^{12. MT Newswires, YCharts.com Oct 6-13, 2025}