Weekly Talking Points for Financial Advisors (10/27/25)

Read the highlights of this week's commentary from Helios:

• Consumer prices rose 3.0% annually in September, slightly below the 3.1% forecast, reinforcing expectations for a Fed rate cut on October 29. Monthly inflation climbed 0.3%, driven by a 4.1% jump in gas prices. Core inflation, which excludes volatile food and energy costs, eased to 3.0% from 3.1%, offering some relief to policymakers amid expectations for further cuts this year.
• President Trump halted negotiations with Canada on October 23 over a tariff-related ad, straining ties ahead of a key China-Canada meeting. Meanwhile, U.S. and Chinese officials convened in Malaysia on October 24 to salvage fragile relations ahead of the Trump-Xi APEC summit. These dual tensions add uncertainty to the broader outlook as the Fed moves toward further rate cuts this year.
• The S&P Global U.S. Composite Purchasing Managers’ Index rose in October, marking the second-fastest pace of growth this year. Both the manufacturing and services sectors exceeded expectations, signaling continued economic momentum. However, business confidence dropped to near three-year lows amid tariff concerns, slowing hiring and leading to a sharp buildup of unsold inventory in manufacturing.

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