- Stock indexes closed mixed on Friday, with the S&P 500 and Dow Jones reaching new highs, while the Nasdaq 100 fell. Rising bond yields sparked tech stock sell-off. Chicago and Dallas Fed presidents cautioned against further rate cuts, impacting market sentiment. Expectations of strong Q3 earnings boost stock market outlook.
- US government shutdown delays key reports, including payroll data. Shutdown could impact inflation data and lead to widespread layoffs. Bloomberg Economics estimates 640,000 federal workers could be furloughed, affecting jobless claims and potentially raising unemployment rate to 4.7%.
- Interest rates rose on hawkish Fed comments, with 10-year T-note yield at 4.119%. T-notes initially gained support but turned lower due to Fed caution and price pressure signs in service sector. European bond yields fell. Eurozone PPI declined, while UK PMI hit a 5-month low.
- ECB policymakers confident in interest rate policy calibration. Markets expect minimal rate cut in upcoming ECB meeting. Humana, Centene, and other health care stocks surged, while Macau-linked casino stocks declined. Tech stocks like KLA Corp and Intel fell, impacting overall market performance.
- Earnings reports expected from Aehr Test Systems and Constellation Brands Inc on 10/6/2025. Zillow Group, Freeport-McMoRan, and other stocks saw positive movements. Palantir Technologies and Hecla Mining were among the top losers. Market outlook remains influenced by economic indicators, Fed comments, and corporate earnings.
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