As we head into the final stretch of October, the U.S. economy is balancing on a tightrope—caught between inflationary pressures, a cooling labor market, and a government shutdown that’s clouding visibility for policymakers and investors alike.

Markets are moving fast, driven by tech optimism and macro uncertainty. With the government shutdown delaying key data, investors are relying on momentum and speculation. Whether this rally holds will depend on Fed signals and ETF decisions later this week.

As we step into the second week of October, the U.S. economy continues to navigate a complex landscape shaped by policy shifts, labor market dynamics, and global uncertainty. Here's a look back at the key developments from the past week and what to watch for in the days ahead.

After months of elevated borrowing costs, September 2025 brought a welcome shift for homebuyers and homeowners alike: mortgage rates are finally heading lower. The average 30-year fixed rate dropped to around 6.13%, marking its lowest point in three years.

This decline is more than just a number—it’s reshaping affordability and reigniting interest in both home purchases and refinancing.

This week has brought a wave of optimism for homebuyers and real estate investors, as mortgage rates continue their downward trend ahead of a highly anticipated Federal Reserve interest rate decision. The average 30-year fixed mortgage rate dropped to 6.13%—its lowest level since late 2022.

‘Making Money’ host Charles Payne discusses 401(k) savings with Walser Wealth Management president Rebecca Walser and what it says about Americans’ retirement

A series of substantial reports and meetings are occuring this week. This clip reviews this week’s agenda and how each event could potentially effect the economy.

A rally in big tech stocks led the broader market to a higher close yesterday, lifting the Nasdaq to an all-time high and helping the market regain most of its losses from earlier in the week.

The market ended mixed to lower yesterday as the Trump administration pressed its campaign to win more favorable trade deals with nations around the globe by leaning into tariffs on goods coming into the U.S.

How many times did I warn that the low level of the VIX on last Thursday’s record close put stocks into danger of getting sold off and this is exactly what happened yesterday to start the new week. In addition, we also got the President stepping up pressure on major trading partners to make deals before punishing tariffs imposed by the U.S. take effect.

U.S. stocks climbed further into records on Thursday after a report showed the U.S. job market looks stronger than expected.

The White House press release on the One Big Beautiful bill.

Happy 4th of July!

Sweeping legislation reshapes U.S. fiscal policy with major tax relief, healthcare reforms, and immigration enforcement investments. With a party-line vote, the bill has received strong criticism and high praise. How will it effect you? Read more here.

We saw the first half of the year end with the following items – a trade war, a real war with bombs dropped in the Middle East, plus a barrage of insults hurled by the president of the United States at the head of the Federal Reserve.

The first day of trading for the second half of the year looked like a return to the 1980’s as the old-time stocks that have done the worst this year – pharmaceuticals, retailers, casinos, builders and the rest of the weak items – all of a sudden caught fire and did well with the result that the Dow ended a strong day with a 400 point advance to 44,495 which left it within 1% of its all-time high. This was due to gains in AMGN, AXP, HD, HON, MCD, MRK, NKE, UNH and even AAPL which is starting to show pulse from low levels. It has now been higher for four straight days and seven out of the last eight.

Despite an afternoon dip into negative territory, the higher market then resumed its upside run to get the S&P and Nasdaq to new record high closes on Friday. This was another milestone in the market’s remarkable recovery from a springtime plunge caused by fears that the Trump administration’s trade policies could harm the economy.

After two powerful upside days, the market took a deep breath after a nominally higher start and ended mixed, but still within range of record highs.

The market did on Friday the same thing that it did the previous trading day which was on Wednesday, namely start very higher and then ended mostly lower, such as the Dow getting to an early 260 point gain but slipped to a final 35 point close to 42,206 led by AAPL of all things in addition to financials such as AXP, GS and JPM.

The highly anticipated, but no surprise at the results, finished with the market selling off from its best earlier levels and ending narrowly mixed. The Federal Reserve eventually said that it may cut interest rates twice this year, though it is far from certain about that.