Key takeaways
- U.S. markets showed resilience despite a government shutdown, with investors expecting further Fed easing.
- Trump escalated pressure on “Democrat Agencies” while the G7 pledged tighter sanctions on Russia and Italy cut its deficit to EU limits.
- Alternative labor data underscored a cooling U.S. jobs market as gold steadied near record highs.
- Bitcoin surged above $120K, while gold stayed near $3,850 as traders balanced risk against safe-haven demand.
Geopolitics & Market Sentiment
On October 3, 2025, markets showed cautious strength as investors balanced the risk of a U.S. government shutdown against rising expectations of further Federal Reserve easing, while safe-haven demand kept gold near record highs even as equities climbed to fresh peaks.
On the diplomatic front, President Donald Trump said he will meet budget officials to target cuts at “Democrat Agencies,” signaling a tougher stance during the second day of the shutdown and adding to policy uncertainty in Washington.
Additionally, the U.S Supreme Court’s use of its emergency docket drew scrutiny after rulings that advanced parts of the administration’s agenda, while justices declined to act on removing a Federal Reserve governor.
In Europe, the G7 pledged tighter enforcement of sanctions on Russia and signaled steps to phase out remaining Russian imports, as U.S. officials indicated Kyiv could receive intelligence support for long-range strikes.
On the economic front, investors leaned on alternative labor indicators as the shutdown delayed key U.S. data releases, with a softer private-sector jobs reinforcing bets on additional rate cuts this year.
North of the border, the Bank of Canada flagged a review of its core-inflation metrics as volatility from external shocks complicates policy assessment.
In Japan, a Bank of Japan deputy governor pointed to improving business sentiment and resilient profits, keeping the door open to further gradual rate increases if conditions align.
Separately, France’s central bank governor urged the bloc to accelerate reforms to bolster the euro’s international role amid tariff-driven fragmentation, and Italy said it would narrow its deficit to the EU’s 3% ceiling this year.
Meanwhile, U.S. bank shares steadied as industry executives signaled optimism that pending capital rules could be eased, while U.S. and European indices hovered at or near record highs.
In crypto, Bitcoin pushed past $120,000 over the past 24 hours as traders looked past the shutdown toward the Fed cut expectations, with Ethereum posting strong gains near $4,400, and Solana extending its rally above $230.
Price movements
Global Indices
- S&P 500 Index (SPX): 6,715.3 (+0.06%)
- Dow Jones Industrial Average (DJI): 46,519.72 (+0.17%)
- Nasdaq Composite (IXIC): 22,844.05 (+0.39%)
- Nikkei 225 Futures (NK2251D): 45,090.0 (+0.04%)
- FTSE 100 (FTSE): 9,426.1 (−0.23%)
Cryptocurrencies
- Bitcoin (BTCUSD): 120,580 (+1.61%)
- Ethereum (ETHUSDT): 4,475.90 (+2.94%)
- Binance Coin (BNBUSDT): 1,082.69 (+5.47%)
- Solana (SOLUSDT): 231.27 (+4.16%)
- BTC Dominance (BTC.D): 58.81% (−0.44%)
Major Stocks
- Nvidia (NVDA): 188.89 (+0.88%)
- Tesla (TSLA): 436.00 (−5.11%)
- Microsoft (MSFT): 515.74 (−0.76%)
- Meta Platforms (META): 727.05 (+1.35%)
- Apple (AAPL): 257.13 (+0.66%)
- Amazon (AMZN): 222.41 (+0.81%)
Commodities
- Silver (XAGUSD): 46.9499 (−0.78%)
- Gold (XAUUSD): 3,856.510 (−0.22%)
- WTI Crude Oil (USOIL): 60.77 (−1.65%)
- Brent Crude Oil (BRENT3!): 68.160 (−3.68%)
Forex
- U.S. Dollar Index (DXY): 97.163 (+0.13%)
- EUR/USD: 1.17203 (−0.08%)
- GBP/USD: 1.34430 (−0.24%)
- USD/JPY: 147.21 (+0.12%)
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