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Stock Market Beats Expectations as Inflation Holds Steady

Picture of Scott Colbert Scott Colbert : October 27, 2025

Economy Economic Insights
Stock Market Beats Expectations as Inflation Holds Steady

Recorded October 27, 2025

Positive reports on trade negotiations, company revenues and earnings, and inflation are boosting stock market returns. In the latest Commerce Trust Market Brief video, Scott Colbert, Chief Economist and Director of Fixed Income Management, provides his latest perspective on the economic trends supporting continuing stock market and fixed income performance.  

  • Consumer Price Index (CPI) data rolls in despite the government shutdown, pointing to a benign CPI report helped along by lower housing and energy prices   

  • The Federal Reserve cut interest rates by 25 basis points after the latest Federal Open Market Committee meeting to put the short-term interest rate in a more neutral posture 

  • High earnings expectations for the Magnificent Seven stocks are expected to further bolster stock market returns, amidst the highest level of companies beating revenue and earnings estimates overall in the last four years  

  • Five of the Magnificent Seven companies report earnings this week, representing approximately 25% of the S&P 500 Index market cap 

 

Read the transcript

 

 

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