MARKETS
- Most markets continued to hit new highs in October, led by the U.S. due to strong earnings results. The global equity index (MSCI ACWI IMI) was positive at +2.24% in October and is up +21.09% YTD. The S&P 500, which tracks large cap U.S. stocks, increased by +2.34% in October and is up +17.52% YTD. The Russell 2000 Index, which tracks domestic small cap stocks increased by +1.81% in October and is up +12.39% YTD. The International developed equity index (MSCI EAFE) increased by +1.18% in October and is up +26.61% YTD. The emerging markets index (MSCI EM) increased by +4.18% in October and is up +32.86% YTD.
- In October, bond yields were mixed across maturities; the 30-year U.S. Treasury bond yield decreased by 6 bps to 4.67%, the 10-year yield decreased by 5 bps to 4.11%, and the 2-year yield stayed flat at 3.60%.
- The Barclays U.S. Aggregate Index, which is a measure of U.S. Bond prices, increased by +0.62% in October and is up +6.80% YTD.
ECONOMIC AND GEOPOLITICAL HEADLINES
- U.S. gross domestic product (GDP) in the second quarter of 2025 increased by 3.8%, according to the “3rd” estimate released by the Bureau of Economic Analysis. In the first quarter of 2025 GDP decreased by -0.6%. This was last updated September 25, 2025.
- The October Services PMI (formerly Non-Manufacturing Purchasing Managers Index) increased to 52.40% from 50.00% in September. The October Manufacturing PMI decreased to 48.70% from 49.10% in September.
- October non-farm employment was not reported due to the government shutdown. The Dow Jones estimate is for a loss of 60,000 jobs with the unemployment rate increasing to 4.5%, while ADP reported that private employers added 42,000 jobs.
PERFORMANCE UPDATES
- The Equity Fund increased by +1.72% in October and is up +15.83% YTD. The Bond Fund increased by +0.64% in October and is up +6.04% YTD. The Stable Value Fund was up +0.22% for October and is up +2.04% YTD. The Northern Trust World Selection Index Fund increased by +2.64% in October and is up +19.13% YTD.
- The Balanced Fund increased by +1.88% in October and is up +13.89% YTD. The Target Annuitization Date TAD 2025; TAD 2030; TAD 2035; TAD 2040 TAD 2045 and TAD 2050 returns were +0.61%, +0.98%, +1.22%, +1.33%, +1.42% and +1.50% respectively for October and +5.62%, +9.19%, +11.35%, +12.29%, +13.05% and +13.79% YTD.
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