The Dividend Cafe Tuesday - October 28, 2025
Oct 28, 2025
The market saw positive movements with the Dow, S&P, and Nasdaq all up. Key drivers included anticipation of a US-China trade deal and a potential rate cut by the Federal Reserve. A discussion on how government shutdowns historically affect markets revealed a pattern of positivity in the long term. Strong earnings from major tech companies are fueling momentum, alongside recent stimulus effects boosting economic growth. The host also addressed lessons learned from investment mistakes, emphasizing continuous improvement in decision-making.
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Tech-Led Rally With Falling Yields
- Markets moved higher across indices with tech leading the gains. 10-year yields fell below 4% to 3.97%, supporting equity performance.
Five Catalysts Driving Positive Sentiment
- Multiple catalysts are pushing sentiment higher, including a potential U.S.-China trade deal and an imminent Fed cut. The Fed may also stop quantitative tightening given softer inflation and labor data.
Shutdowns Historically Notably Benign
- Historical data shows government shutdowns often precede positive market performance six months later. Brian expects the shutdown to end and views that outcome as a market positive.