ADDX GO Market Morning Wrap - 2nd Oct

Stock Market

On Wednesday (October 1), U.S. stocks opened lower but rallied, with the three major indices rising for the fourth consecutive day, and the Dow and S&P 500 hitting all-time highs.  

 

At the close, the Dow Jones Industrial Average rose 0.09% to 46,441.10 points, setting a new record for the second day in a row; the S&P 500 gained 0.34% to 6,711.20 points, surpassing its September 22 record; the Nasdaq Composite climbed 0.42% to 22,755.16 points.  

 

Nvidia rose 0.35% to $187.24, hitting another record high with a market cap of $4.558 trillion. The Philadelphia Semiconductor Index also reached a new high, up 2.05%. Micron Technology surged 8.86%, and Intel jumped 7.12%.  

 

 

The previous day, the U.S. federal government entered its first shutdown in nearly seven years.

 

During trading, the Senate voted on a Democratic temporary funding bill but failed to pass it. Due to Democratic insistence on healthcare provisions, a Republican short-term funding bill, which passed the House on September 30 with some Democratic support, also failed in the Senate.  

 

Historically, stocks have remained stable during government shutdowns, but this time the risks are higher due to multiple economic factors. Investors are concerned about a slowing labor market, inflation risks, and elevated U.S. stock valuations and market concentration.  

 

The Congressional Budget Office estimates that approximately 750,000 federal workers face daily furloughs during the shutdown. The Bureau of Labor Statistics’ September nonfarm payrolls data, due Friday, may be delayed.  

 

Berenberg U.S. economist Atakan Bakiskan said: “We believe that even if the September nonfarm data isn’t available before the Fed’s meeting, officials will have enough labor market information to justify another 25-basis-point ‘insurance’ rate cut in October.”  

 

Louis Navellier, founder of Navellier & Associates, commented: “The market doesn’t seem worried, and buyers hoping to buy the dip will have to keep waiting. U.S. stock market momentum remains optimistic.”

Global Hotspots

U.S. Senate Rejects Both Parties’ Temporary Funding Bills  

 

On the morning of October 1, the U.S. Senate voted 47-53 against a Democratic temporary funding bill, failing to advance it. Later, a Republican short-term funding bill, which passed the House on September 30 with some Democratic support, also failed in the Senate due to Democratic demands on healthcare. The government shutdown remains unresolved.

 

U.S. Senate to Pause Funding Bill Votes on October 2  

 

The U.S. Senate will pause voting on Republican and Democratic funding bills on October 2. If no agreement breaks the deadlock, votes are scheduled for October 3 and 4, with specific times unclear.

 

New York State Refuses to Fund Statue of Liberty, Torch May ‘Go Dark’  

 

On October 1, New York Governor Kathy Hochul’s office stated that the state will not cover operating costs for the Statue of Liberty during the shutdown, unlike in previous instances. Hochul noted that the statue’s torch may “go completely dark.”

 

Over 100,000 federal workers in New York face furloughs, including dozens at the statue. It remains unclear if or when the statue will close.

 

S&P: Shutdown Could Reduce GDP by 0.1-0.2 Points Per Week  

 

S&P Global Ratings stated that the recent federal government shutdown may only slightly impact GDP growth, but reduced discretionary spending and low market sentiment are increasing economic uncertainty. Each week of the shutdown could lower economic growth by 0.1-0.2 percentage points.

 

Supreme Court Blocks Trump’s Attempt to Fire Fed Governor Cook  

 

The U.S. Supreme Court temporarily upheld Fed Governor Lisa Cook’s position, scheduling oral arguments for January 2026. Cook will remain in her role until the court hears the case.

 

UK Plans Stamp Duty Exemption for New Listings  

 

Reports indicate that the UK will exempt stock purchases of newly listed companies on the London Stock Exchange from a 0.5% tax, potentially for two to three years after listing.

 

Germany Plans to Build World’s First Fusion Power Plant  

 

On October 1, Germany’s federal cabinet approved a plan titled “Germany Toward a Fusion Power Plant” to construct the world’s first nuclear fusion power station. By 2029, Germany will invest over €2 billion in research, infrastructure, and demonstration facilities.

 

Netherlands Calls for EU to Designate Yemen’s Houthis as Terrorists  

 

Following an attack on a Dutch-flagged cargo ship in the Gulf of Aden, the Netherlands on October 1 urged the EU to list Yemen’s Houthis as a terrorist organization and impose sanctions.

 

The Dutch Foreign Ministry stated that the Houthis pose a “serious threat to maritime navigation freedom.” The EU’s terrorist list includes 13 individuals and 22 organizations; designation would freeze Houthi assets and funds.

Company News

Microsoft Integrates AI Services into Office to Compete with ChatGPT  

 

Microsoft will integrate its AI subscription service into Office software to better compete with OpenAI’s ChatGPT.

 

The company announced a premium Microsoft 365 version, priced at $19.99 per month, which includes an integrated chatbot, AI research assistant, and enhanced image generation capabilities.

 

Google Cloud Cuts Over 100 Design-Related Jobs  

 

Reports indicate that Google laid off over 100 employees in its cloud division, including roles in the “quantitative user experience research” and “platform and services experience” teams, as well as adjacent teams.

 

These roles typically focused on using data, surveys, and other tools to understand and implement user behavior for product development and design.

 

Intel in Preliminary Talks to Include AMD as Foundry Client  

 

Intel is in early discussions to add AMD as a foundry customer. Sources say it’s unclear how much of AMD’s manufacturing would shift to Intel, whether AMD would invest directly, or if a deal will be reached.

 

General Mills Plans to Close Facilities, Incurs $82M Restructuring Costs  

 

General Mills approved a multi-year restructuring plan, including closing some production facilities, expected to incur approximately $82 million in restructuring costs.

Forex & Commodities  

WTI crude futures fell 0.95%, closing at $61.78 per barrel. Brent crude futures fell 1.03%, closing at $65.35 per barrel.  

 

COMEX gold futures rose 0.5%, closing at $3,892.6 per ounce; COMEX silver futures rose 1.67%, closing at $47.42 per ounce.  

 

At the New York close, the dollar index fell 0.09% to 97.74, with most non-U.S. currencies rising.

Key Events

Dollar’s Share in Global Reserves Hits 30-Year Low Due to Depreciation  

 

The International Monetary Fund (IMF) stated on Wednesday that the dollar’s share in international reserves dropped to 56.3% in April-June, down nearly 1.5 percentage points from Q1, marking a 30-year low. This change is primarily due to the dollar’s significant depreciation.

Cryptocurrency  

Bitcoin rose 3.81% in 24 hours, reaching $118,734.38.  

 

Ethereum (ETH-USD) rose 4.74% to $4,349.59.  

 

XRP (XRP-USD) rose 4.78%, BNB (BNB-USD) rose 1.22%, and Solana (SOL-USD) rose 6.15%.  

 

Dogecoin (DOGE-USD) rose 6.75%, and Cardano (ADA-USD) rose 5.34%.

Key Events

Bitcoin Breaks $119,000, Liquidating Nearly 130,000 Traders Overnight

 

On October 2, Bitcoin surged past $119,000, hitting a one-month high, while Ethereum topped $4,300. The rally led to heavy losses for Bitcoin short sellers, with $575 million in liquidations over 24 hours, including $450 million in short positions, affecting over 129,000 traders.

 

Unlike traditional retail-driven rallies, this surge was driven by institutional inflows. CoinGecko reports that since U.S. spot Bitcoin ETFs were approved in 2024, these products have accumulated over 1.29 million BTC, approximately 6% of total supply.

 

BlackRock’s IBIT has become the largest ETF by assets under management. Crypto-related stocks, such as Strategy and MARA Holdings, also recorded significant gains.