Friday Afternoon Coffee - Markets Update - 3 Oct 2025 - Dow, S&P 500 Climb as Shutdown Drags; Nasdaq Slips on Tech Weakness

The Trade Academy Team
Oct 3
3 min read

Markets Update: U.S. stocks ended mixed Friday, with the Dow and S&P 500 advancing as expectations for Federal Reserve rate cuts held firm, while the Nasdaq eased on weakness in major technology names.

Global Markets Roundup: 3 October 2025

The Dow Jones Industrial Average gained 352.67 points, or 0.76%, to 46,873.59. The S&P 500 added 11.39 points, or 0.17%, to 6,726.74, while the Nasdaq Composite fell 52.64 points, or 0.23%, to 22,791.41.

Tech Stocks Weigh on Nasdaq

Applied Materials dropped 2.8% after forecasting a $600 million revenue hit in fiscal 2026, citing new U.S. export restrictions that will impact semiconductor demand. Among mega-caps, Nvidia slid 1.6% and Tesla tumbled 3.3%. By contrast, utilities outperformed, with the S&P 500 utilities index gaining more than 1%.

USA Rare Earth surged 13.3% to a record high after CEO Barbara Humpton said the company was in “close communication” with the White House.

Market breadth remained positive: advancing issues outnumbered decliners 1.89-to-1 on the NYSE, with 596 new highs and 45 new lows. On the Nasdaq, gainers topped losers by a 1.6-to-1 ratio, with 2,820 rising stocks versus 1,764 decliners.

Shutdown Clouds Data Outlook

The U.S. government shutdown stretched into its third day, preventing the release of September’s nonfarm payrolls report. Investors instead digested data from the Institute for Supply Management showing the services employment index contracted for the fourth straight month. The ISM’s broader services PMI slipped to 50 in September, down from 52.0 in August, signaling stagnation in the sector that drives over two-thirds of U.S. economic activity.

Chicago Fed President Austan Goolsbee struck a cautious tone, saying he was hesitant to commit to a series of rate cuts while inflation remains above target.

Dollar Retreats, Fed Cuts in Focus

The dollar weakened across major currencies, heading for multi-week losses. The Dollar Index DXY slipped 0.15% to 97.72. The euro EURUSD rose 0.22% to $1.1739, sterling gained 0.34% to $1.3479, and the Swiss franc strengthened 0.21% to 0.7951 per dollar. Against the yen USDJPY , the greenback edged up 0.1% to 147.44 but was still set for its biggest weekly gain versus the yen since May.

Markets are pricing in at least two more Fed cuts this year, with CME FedWatch showing an 84% probability of a December reduction following a near-certain October move. Fed Governor Stephen Miran reiterated his call for a more aggressive easing path, having dissented in favor of a 50-basis-point cut last month.

Crypto

Bitcoin extended its rally for an eighth straight session, climbing 1.5% to $122,530.82, its highest since mid-August.

Commodities

Gold futures surged 2.77% on the week to $3,880.80 an ounce, briefly topping $3,900. Spot gold held near $3,902/oz, while silver rose 3% to $47.77/oz, edging closer to its 1980 all-time high.

Oil rebounded after four straight losses but still logged steep weekly declines. WTI crude settled 0.7% higher at $60.90 per barrel, while Brent rose 0.7% to $64.50. Both contracts fell about 7% for the week.

Grains Mixed

Chicago Board of Trade November soybeans touched $10.28¾ before easing to $10.23½, down ¼ cent on the day. December corn fell 1¾ cents to $4.20 a bushel, while December wheat rose 1 cent to $5.15¾ per bushel.

Looking forward, refer to the economic calendar below to see the upcoming events scheduled for today and the rest of the week.

General news - Information source from multiple newswires.

The article and the data is for general information use only, not advice!

The Trade Academy Team