Higher inflation, election uncertainty, and ongoing tensions in the Middle East caused weaker stock and bond returns for the month of October. Here are 3 things you need to know:

1. The S&P 500 (-0.9%) lost ground for the first time in six months. The index did hit a record high on October 18, but disappointing earnings from big tech pushed it back into negative territory for the month.
2. We saw the biggest monthly jump in the 10 yr. Treasury yield (+50bps) since September 2022.
3. It was another strong month for precious metals, with gold (+4.2%) hitting another all-time high in October and advancing for a 4th consecutive month.

Sources: J.P. Morgan Asset Management – Economic Update; Bureau of Economic Analysis (www.bea.gov); Bureau of Labor Statistics (www.bls.gov); Federal Open Market Committee (www.federalreserve.gov); Bloomberg; Deutsche Bank; FactSet.

Indices:

• The Bloomberg Barclays Aggregate Bond Index is a broad-based index used as a proxy for the U.S. bond market. Total return quoted.
• The S&P 500 is designed to be a leading indicator of U.S. equities and is commonly used as a proxy for the U.S. stock market. Price return quoted.
• The Russell 2000 Index is a small-cap U.S. stock market index that makes up the smallest 2,000 stocks in the Russell Index.
• The MSCI ACWI ex-US Index captures large and mid-cap representation across 22 of 23 developed market countries (excluding the U.S.) and 27 emerging market countries.  The index covers approximately 85% of the global equity opportunity set outside the U.S. Price return quoted.
• The MSCI Emerging Markets Index captures large and mid-cap segments in 26 emerging markets. Price return quoted (USD).

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