Weekly Market Update (Week Ended October 31, 2025)

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Olori Uwem

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Mar 18, 2024
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️ Weekly Market Update (Week Ended October 31, 2025)

Headline: Stocks gained 0.59% overall as technology shares rallied, while defensive sectors struggled.

Market Overview

The Morningstar US Market Index rose 0.59% this week, marking a modest gain for investors. The momentum came mainly from technology and consumer cyclical stocks, while defensive and real estate sectors dragged on performance.
• Technology: +2.54%
• Consumer Cyclicals: +2.12%
• Consumer Defensives: -3.91%
• Real Estate: -3.48%

This pattern shows investors rotated toward growth and innovation, stepping away from typically stable, defensive names.

Market by Size and Style
• Large-cap stocks rose 1.2%, showing institutional strength and confidence in established companies.

• Mid-cap stocks fell 1.1%, while small-caps dropped 1.51%, reflecting continued caution toward riskier equities.

• Growth stocks dipped slightly (-0.1%), blend stocks fell 0.13%, and value stocks lost 0.97%.

This suggests that while enthusiasm remains for certain large-cap growth names, the broader market still faces headwinds.

Major Index Performance
• S&P 500: +0.71%
• Nasdaq Composite: +2.24%

The Nasdaq’s strong rise underscores tech dominance this week, driven by companies benefiting from AI optimism and renewed consumer demand in digital platforms.

Stock Performance Summary

Out of 848 U.S.-listed companies covered by Morningstar:
• 278 (33%) gained,
• 2 were unchanged,
• 568 (67%) declined.

So while the overall index was positive, most individual stocks actually fell, meaning the week’s gains were concentrated in a few big names.

Other Markets
• 10-Year U.S. Treasury yield: up to 4.11% (from 4.02%)
• 2-Year U.S. Treasury yield: up to 3.60% (from 3.48%)
• WTI Crude Oil: fell 0.86% to $60.91/barrel
• Gold (Comex): dropped 2.82% to $3,996.20

Higher Treasury yields show continued caution in bond markets, while the drop in gold and oil suggests easing inflationary fears or reduced safe-haven demand.

Top Gainers of the Week
1. Guardant Health (GH) — +28.9%
• Up over 104% in three months and 300% in 12 months.
• Currently trading 55% above fair value, closing at $92.98.
• Investors are bullish on its diagnostic growth potential despite its “no-moat” status.

2. Lumen Technologies (LUMN) — +27.1%
• Up 131.8% in three months and 54.6% in a year.
• Trading at a 71% premium to fair value at $10.28.
• Momentum likely tied to restructuring optimism and debt management progress.

3. Teradyne (TER) — +26.0%
• A wide-moat semiconductor tester company.
• Up 64% in three months, trading at $181.76 (30% above fair value).

4. Wayfair (W) — +24.6%
• Up 140% in 12 months, closing at $103.40.
• Strong online retail recovery and improved margins likely driving performance.

5. Illumina (ILMN) — +23.5%
• Despite long-term weakness (-33% in 12 months), bounced this week to $123.64.
• Now trading near its fair value as investors reassess its genomics outlook.

Top Losers of the Week
1. Intellia Therapeutics (NTLA) — -50.7%
• A 5-star stock trading at $12.62, 53% below fair value.
• The steep drop reflects clinical or funding setbacks in biotech sentiment.

2. FMC Corp (FMC) — -50.2%
• Now trading at $15.17, 75% below fair value.
• Continued weakness in the agricultural chemicals market.

3. Fiserv (FI) — -46.7%
• At $66.69, down 67% over 12 months.
• Payment sector volatility and competition are pressuring valuations.

4. Varonis Systems (VRNS) — -43.5%
• At $35.22, trading 25% below fair value.
• Market rotation out of smaller tech names weighing on sentiment.

5. Chipotle (CMG) — -23.1%
• Down 41.6% in 12 months, now $31.69/share.
• The decline reflects valuation concerns after a prolonged rally.

️ Upcoming Market Events

Monday, Nov 3: ISM Manufacturing Report; Palantir (PLTR) earnings
Tuesday, Nov 4: Uber (UBER) and Pfizer (PFE) earnings

Wednesday, Nov 5: ADP Employment Survey, ISM Services PMI; Energy Transfer (ET) and Snap (SNAP) earnings

Thursday, Nov 6: Albemarle (ALB) earnings

Friday, Nov 7: University of Michigan Consumer Sentiment, Consumer Credit Report

Takeaway for Investors

This week’s performance reflects a rotation-driven market — tech and cyclicals are regaining leadership while defensive plays take a breather.
High Treasury yields signal that markets are pricing in persistent economic resilience rather than rate cuts.

For investors:
✅ Stay focused on quality growth names with earnings strength.

✅ Avoid overpaying for hype-driven rallies.

✅ Keep diversification — as seen this week, sector shifts can be abrupt.