Last week brought a marked uptick in volatility across equity markets, with sentiment challenged by a convergence of factors.

Markets wrapped up a volatile week with a mixed tone, as investors digested hawkish Federal Reserve commentary, lingering uncertainty from the recent government shutdown, and the tail end of earnings season.

Markets ended the week on a cautious note amid valuation concerns in technology, economic uncertainty, and the prolonged government shutdown.

The equity rally that has dominated much of 2025 showed resilience in the week ending Oct. 31: major U.S. indices finished the week modestly higher (S&P 500 and Nasdaq advancing while the Dow was essentially flat on Friday), leaving the S&P about +16% year-to-date as investors balance strong corporate earnings against macro risks.

U.S. equity markets posted strong gains last week, with all major indices closing at record highs. The S&P 500 rose 1.92%, the Nasdaq gained 2.31%, the Dow added 2.20%, and the Russell 2000 climbed 2.50%.