MRKT Matrix Stocks Rally On Mild Inflation Report
Oct 24, 2025
Markets soar as mild inflation data sends the Dow to record highs. Goldman Sachs raises concerns about potential pullbacks amid rising valuations. Fund managers pivot to safer AI strategies, looking at indirect investments to circumvent bubble risks. AMD’s stock jumps 7% with news of IBM's use of its chips in quantum computing. Trade tensions escalate as the U.S. halts talks with Canada over a Reagan ad. Get ready for earnings season as major tech companies prepare to report impressive gains!
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Mild Inflation Spurs Market Rally
- Cooler-than-expected CPI pushed stocks to record highs as markets priced in easier Fed policy.
- The Dow surged ~481 points and the S&P 500 briefly topped 6,800 on hopes for growth and lower rates.
Earnings Beat And Revenue Acceleration
- Q3 earnings are beating estimates with 87% topping EPS and 83% beating revenue, above historical norms.
- Revenues are growing at the fastest pace in three years, driven by tech, financials, and industrial strength.
Goldman Flags Rising Drawdown Risk
- Goldman Sachs warns downside risk is rising as investor risk appetite cools and valuations stay high.
- The bank recommends hedging with S&P 500 options amid a potential near-term pullback despite mild pro-risk stance.