Key Takeaways
- Political instability in France and Washington weighed on sentiment, pushing gold to hit record highs above $4,000.
- The U.S. government shutdown entered a second week, leaving markets without key data.
- Japan’s long-term yields reached historic highs and the yen weakened further.
- Bitcoin slipped to $122K while investors rotated into gold and the dollar.
On October 8, 2025, markets eased from recent record highs as investors took profits and turned cautious amid political turmoil in the United States and France. The U.S. dollar strengthened to a six-week high while gold futures crossed the landmark $4,000 level for the first time, underscoring renewed demand for safe havens and persistent uncertainty over monetary and fiscal policy.
On the diplomatic front, France’s deepening crisis weighed heavily on European sentiment after Prime Minister Sébastien Lecornu’s resignation left President Emmanuel Macron struggling to form a stable government. The political paralysis, described by local media as “a mess,” raised fresh concerns over France’s budget deficit and Eurozone stability.
In Washington, President Donald Trump escalated tensions with state leaders by suggesting he may invoke the Insurrection Act to deploy National Guard troops in Democratic-led cities. A federal judge temporarily blocked deployment to Portland, while another allowed it in Chicago. Trump said the move was necessary to restore order, further polarizing debate over the limits of presidential power.
At the White House, Trump promised to treat Canada “fairly” in tariff negotiations but gave little clarity on the future of the USMCA trade deal. In the Middle East, U.S. envoys joined new ceasefire talks in Egypt as Gaza signaled conditional readiness to reach a Gaza peace deal.
Meanwhile, a U.S. congressional report revealed that Chinese chipmakers purchased nearly $40 billion worth of advanced semiconductor equipment last year through loopholes in allied export controls, fueling bipartisan calls for stricter restrictions.
On the economic front, the seventh day of the U.S. government shutdown left investors reliant on regional surveys showing weaker consumer expectations and firmer inflation projections. Traders continued to bet on another Fed rate cut this month to counter labor market softness, even as critics warned that easy policy risked fueling asset bubbles.
Meanwhile, bank reserves at the Federal Reserve fell below $3 trillion for the first time since January, renewing questions about liquidity and the pace of balance-sheet reduction, while Bond markets remained strained, though U.S. Treasuries saw light buying.
Gold extended its extraordinary rally, closing at $3,985 an ounce after briefly topping $4,000 as inflows into gold ETFs surged, while oil prices were mixed, with WTI crude edging higher and Brent slipping.
The World Bank said Trump’s 50% tariffs on Indian exports would slow South Asian growth in 2026, while the Reserve Bank of India proposed easing credit-risk rules for lenders to align with global standards.
Meanwhile, Japan’s 30-year yield touched a record 3.345%, as the yen weakened past 152 to the dollar.
In Crypto, Bitcoin retreated about 2% to trade near $122,000 as risk sentiment cooled and the stronger dollar weighed on digital assets. Ethereum fell over 4%, while Solana lost nearly 4% as traders reduced exposure ahead of the Fed meeting.
Price Movements
Global Indices
- S&P 500 Index (SPX): 6,714.58 (−0.38%)
- Dow Jones Industrial Average (DJI): 46,602.98 (−0.20%)
- Nasdaq Composite (IXIC): 22,788.36 (−0.67%)
- Nikkei 225 Futures (NK2251!D): 48,080.00 (+0.29%)
- FTSE 100 (FTSE): 9,491.80 (+0.18%)
Major Stocks
- Nvidia (NVDA): 185.04 (−0.27%)
- Tesla (TSLA): 433.09 (−4.45%)
- Microsoft (MSFT): 523.98 (−0.87%)
- Meta Platforms (META): 713.08 (−0.36%)
- Apple (AAPL): 256.48 (−0.08%)
- Amazon (AMZN): 221.78 (+0.40%)
Commodities
- Silver (XAGUSD): 47.75 (−1.59%)
- Gold (XAUUSD): 3,984.60 (+0.64%)
- WTI Crude Oil (USOIL): 62.03 (+0.52%)
- Brent Crude Oil (BRENT3!): 68.17 (−3.68%)
Cryptocurrencies
- Bitcoin (BTCUSD): 121,921 (−2.25%)
- Ethereum (ETHUSDT): 4,493.43 (−4.07%)
- Binance Coin (BNBUSDT): 1,322.71 (+8.14%)
- Solana (SOLUSDT): 223.20 (−3.94%)
- BTC Dominance (BTC.D): 58.92%
Forex
- U.S. Dollar Index (DXY): 98.21 (+0.55%)
- EUR/USD: 1.1656 (+0.02%)
- GBP/USD: 1.3427 (+0.09%)
- USD/JPY: 151.87 (−0.01%)
Read More: Rezolve AI Buys Smartpay After $1B in Processed Payments; RZLV Stock Falls to $6.20
