Wednesday Afternoon Coffee - Markets Update - 1 Oct 2025 - Stocks Mixed as Gold Hits Record High Amid U.S. Government Shutdown

The Trade Academy Team
Oct 1
2 min read

Markets Update: U.S. markets seesawed Wednesday as investors weighed a government shutdown that stalled key economic data releases, while gold surged to fresh records and European equities outperformed on strength in healthcare stocks.

Global Markets Roundup: 1 Oct 2025

The shutdown, which forced the furlough of 750,000 federal workers at a cost of roughly $400 million per day, has delayed the Labor Department’s September jobs report, complicating the Federal Reserve’s assessment of the economy as it considers further rate cuts.

Wall Street Edges Higher Despite Uncertainty

Private payrolls data showed U.S. employment fell by 32,000 last month, well below forecasts for a 50,000 increase, intensifying concerns about labor market weakness. Still, major U.S. indexes recovered from early losses:

S&P 500: +0.2%
Nasdaq Composite: +0.3%
Dow Jones Industrial Average: flat

The MSCI All-World index gained 0.3%, supported by Wall Street’s rebound.

Treasuries saw modest buying, with the 10-year yield falling 4 basis points to 4.1116%.

Gold Breaks Records, Dollar Weakens

Amid political gridlock and rate cut bets, gold extended its rally to $3,895 an ounce, its third consecutive record high. Futures markets now imply a 95% chance of an October rate cut, up from 90% a day earlier, with about a 75% probability of another reduction in December.

The dollar extended its decline for a fourth straight day:

Dollar Index DXY -0.1% to 97.78
Euro EURUSD: -0.1% to $1.1724
Sterling (GBPUSD): +0.2% to $1.3475
Dollar/Yen USDJPY: -0.5% to 147.16

A Bank of Japan survey showing improved sentiment among manufacturers fueled speculation of a near-term rate hike in Tokyo.

Europe Outperforms, Healthcare Leads

European equities bucked global caution, with the STOXX 600 rising 1.2% to near record highs. Britain’s FTSE 100 and Switzerland’s SMI led gains, powered by healthcare stocks after President Donald Trump reached a deal with Pfizer on drug pricing, easing fears of steep U.S. import tariffs.

Asia Mixed, Commodities Under Pressure

In Asia, Japan’s Nikkei 225 fell 0.9% after a sharp rally last quarter, while South Korea’s KOSPI rose 0.9% as exports posted their strongest growth in over a year.

Oil prices slipped for a third straight day as traders weighed the prospect of larger OPEC+ output hikes:

WTI Crude: -1% to $61.71/barrel
Brent Crude: -1% to $65.35/barrel

Grain prices stabilized after recent weakness:

Soybeans: +11¼ cents to $10.13/bushel
Corn: +1 cent to $4.16½/bushel
Wheat: +1¼ cents to $5.09¼/bushel

Outlook

With the shutdown halting the release of Friday’s nonfarm payrolls report and potentially delaying September inflation data, markets face a murkier outlook.

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