Greetings,

The longest shutdown in US history put a major damper on what was shaping up to be a significant swell of IPOs. With the government reopened, analysts do not expect a major resurgence to close out the year. There's a short window remaining in 2025, and firms with advanced paperwork may still debut before Christmas. However, if the recent pullback in stocks continues, some companies may put their plans on ice until better conditions arise.  

Also in this edition:

• Investors shed assets ahead of key economic, tech tests 👋
• Finance leaders eye business plan shifts amid uncertainty 👀
• S&P 500 shows strong Q3 earnings, record profit margins 💪
• Trust in audit tech rises, but governance lags 🤝
• Mass layoff notices rise sharply in Oct. 📈

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US IPOs have lagged behind the broader market in 2025, with newly listed companies returning an average of 9.7% compared to a 15% gain for the S&P 500. High-profile debuts like CoreWeave, Circle Internet Group and Figma have suffered recent losses, while other IPOs have dropped below their offering prices. This underperformance is adding to the challenges for firms considering going public this year.

Financial markets experienced a broad sell-off Monday, with the Dow Jones Industrial Average having its worst three-day stretch since 2018. The sell-off was driven by investor concerns ahead of key events, including Nvidia's earnings report and delayed jobs data. Tech stocks, cryptocurrencies and gold all declined, with notable drops in companies such as Apple and Meta.

White House economic adviser Kevin Hassett noted that the job market is currently sending mixed signals. While he highlighted strong performance in output markets, Hassett pointed out that indicators from the labor market are less clear, suggesting uncertainty about future employment trends. "I think that there could be a little bit of almost quiet time in the labor market because firms are finding the AI is making their workers so productive that they don't necessarily have to hire the new kids out of college," Hassett said.

Federal Reserve Vice Chair Philip Jefferson noted downside risks to the labor market while emphasizing the need to "proceed slowly" as the central bank adjusts interest-rate policy. Separately, Federal Reserve Governor Christopher Waller cited concerns about the job market and indicated support for another rate cut.

Finance leaders are planning significant changes in response to a volatile economy, including cutting spending, freezing hiring and increasing cash reserves, according to a survey by AvidXchange. Nearly all respondents report being asked to "do more with less," and 29% anticipate workforce reductions next year. Half of the respondents plan to increase investment in AI and machine learning, while 39% will focus on non-AI technology and automation.

More than 90% of S&P 500 companies have reported third-quarter earnings, with over 80% beating earnings-per-share expectations and more than 75% surpassing revenue projections, according to FactSet. Firms are on track to record the highest net profit margins in at least 15 years, despite concerns about tariffs and higher costs. Additionally, there has been a notable decrease in tariff discussions during earnings calls.

CFOs are moving from traditional cost-cutting to intelligent cost management, which emphasizes ongoing, strategic actions over arbitrary budget slashing. ICM involves scrutinizing the company's product and service portfolio to eliminate waste, reallocating resources to high-ROI projects and leveraging technology like AI and automation to optimize processes. This approach ensures efficiency gains directly fund profitable growth, making cost control a proactive and dynamic tool for long-term financial health.

Judge Christopher Lopez of the US Bankruptcy Court in Houston says he intends to appoint an examiner to investigate financial irregularities at First Brands, including fabricated invoices and double-pledged collateral. First Brands has sued founder Patrick James, alleging asset transfers for personal gain, which James denies. Onset Financial, a major lender, opposes the examiner, citing resource drainage and governance issues.

The cryptocurrency market has lost $1.2 trillion in value over the past six weeks amid concerns about tech valuations and US interest rates. The value of more than 18,000 coins tracked by CoinGecko is down 25% since Oct. 6, with Bitcoin down more than 28%.

The Securities and Exchange Commission has removed crypto asset-related services as a primary focus in its 2026 examination priorities, shifting to fiduciary duty, standards of conduct and customer data privacy. "Examinations are an important component to accomplishing the agency's mission, but they should not be a 'gotcha' exercise," SEC Chair Paul Atkins says. "Today's release of examination priorities should enable firms to prepare to have a constructive dialogue with SEC examiners and provide transparency into the priorities of the agency's most public-facing division."

The Securities and Exchange Commission has announced changes to the process by which companies can seek to exclude votes on shareholder resolutions, potentially making it more difficult for investors to force votes on certain topics. The SEC will no longer rule on common proxy objections until at least June 2026, citing administrative burden and resource allocation.

Trust in audit technology is on the rise among finance leaders, according to BDO USA's latest audit innovation survey. Four in five leaders now express greater confidence in audit firms utilizing advanced tools such as AI and predictive analytics, marking an 18% increase from the previous year. The majority are also willing to pay more for tech-enabled audits, citing benefits such as improved accuracy, efficiency and cost reductions. This growing trust reflects a shift in expectations, as finance leaders now assume their audit partners will leverage sophisticated technology as part of standard practice.

US companies issued 39,006 advance layoff notices in October, one of the highest monthly totals since 2006, according to the Federal Reserve Bank of Cleveland. The data show a worsening labor market, with job losses rising alongside reduced hiring. The Federal Reserve is considering the extent of this slowdown as it debates future interest rate cuts.

Be assertive in your leadership by being directive, speaking with conviction and leading with both authority and empathy to increase your chances of a promotion over leaders who are quiet, conflict-averse and reluctant to make tough calls, writes executive coach Joel Garfinkle. Improve your presence as a leader by being more enthusiastic, asserting yourself with respect and letting senior leaders see you engaging in difficult conversations and addressing issues head-on, Garfinkle advises.