ADDX GO Market Morning Wrap - 3rd Oct

Stock Market

On Thursday (October 2), the three major U.S. stock indices rose for the fifth consecutive day, all setting new closing records.  

 

At the close, the Dow Jones Industrial Average gained 0.17% to 46,519.72 points; the S&P 500 rose 0.06% to 6,715.35 points; and the Nasdaq Composite climbed 0.39% to 22,844.05 points, surpassing its September 22 closing record.  

 

Nvidia rose 0.88% to $188.89, hitting another all-time high with a market cap of $4.598 trillion. The Philadelphia Semiconductor Index also reached a new high, up 1.94%. Intel gained 3.78%, and AMD rose 3.49%.

 

Due to the U.S. Senate rejecting temporary funding bills, the federal government entered a “shutdown.” The “shutdown” has forced approximately 750,000 federal employees into unpaid leave, halted multiple public services, and impacted national parks and aviation systems.  

 

Markets worried the “shutdown” would cause direct economic losses, putting pressure on U.S. stocks early in the session. However, investors believe the federal funding disruption won’t last long and is unlikely to severely impact the economy.  

 

Brian Mulberry, senior client portfolio manager at Zacks Investment Management, commented: “The government shutdown seems to be within expectations. Both parties in Congress prefer shouting through microphones rather than negotiating a real budget to fund the government long-term.”  

 

Mulberry added, “The market can tolerate this for a few days. While it brings short-term chaos, a successful streamlining of federal departments could be seen as a long-term positive.”  

 

Krishna Guha, head of global policy and central bank strategy at Evercore ISI, stated in a client note: “The U.S. government shutdown and related data delays make a Fed rate cut in October, which we were already confident about, even more certain.”  

 

During trading, news emerged that OpenAI completed a deal allowing employees to sell shares at a $500 billion valuation, surpassing Elon Musk’s SpaceX to become the world’s most valuable startup.

 

This news boosted optimism around artificial intelligence, driving chip stocks higher and pushing the Philadelphia Semiconductor Index to a new high. Additionally, OpenAI’s Sora app saw “viral spread,” further fueling the trend.

Global Hotspots

Putin: U.S. Supplying “Tomahawk” to Ukraine Would Escalate Tensions but Not Change Battlefield  

 

On October 2, Russian President Putin, speaking at the Valdai International Discussion Club’s annual meeting, said U.S. provision of “Tomahawk” missiles to Ukraine would trigger a major escalation but wouldn’t alter the battlefield.

 

Putin stressed this would further damage U.S.-Russia relations, “undermining the faint light emerging in U.S.-Russia ties.”

 

Putin: If U.S. Doesn’t Extend New START, Russia Doesn’t Need It Either  

 

Putin said if the U.S. doesn’t extend the New START treaty, Russia won’t either. Even if the U.S. agrees to extend it a year later, Russia may not consent. Putin emphasized confidence in Russia’s nuclear shield, noting production of advanced weapons like the “Yars” hypersonic missile and upcoming new systems.

 

He added that, except for Belarus, Russia doesn’t need to deploy tactical nuclear weapons beyond its borders.

 

Ukraine Announces Severing Diplomatic Ties with Nicaragua  

 

On October 2, Ukraine’s Foreign Ministry announced it would cut diplomatic ties with Nicaragua due to Nicaragua recognizing Russia-controlled Ukrainian territories as Russian soil.

 

Venezuela Defense Minister: Over 8 Million Militia Registered, Will Join Defense and Security Operations  

 

On October 2, Venezuela’s Defense Minister Padrino López said at a Defense Ministry briefing that over 8 million militia members are registered, with over 60% receiving years of systematic training. He noted the militia will participate in specific defense and security operations as needed.

 

To build a “peaceful border,” Venezuela increased troop deployment along the Colombian border to ~36,000, up from ~25,000 in early September. The “peaceful border” initiative aims to combat drug trafficking and cross-border armed groups through roadblocks and joint patrols.

 

Israel Intercepts Humanitarian Flotilla, Drawing Condemnation  

 

On October 1, Israel’s Foreign Ministry said its navy intercepted and boarded several vessels attempting to break Israel’s maritime blockade of Gaza in the Mediterranean. Israeli media reported these were part of the “Global Resilience Flotilla,” carrying 500+ volunteers from over 40 countries on ~50 ships to deliver humanitarian aid.

 

Israel’s actions sparked protests, with multiple parties issuing condemnations on October 2.

 

Iran Defense Minister: Armed Forces Always Ready to Counter Threats  

 

Iran’s Defense Minister Nasirzadeh, concluding a visit to Turkey, said he discussed border security, Israel’s regional threats, and Syria with Turkish counterparts.

 

He called the visit highly effective. Addressing concerns about U.S. military deployments in the region, Nasirzadeh stressed Iran’s forces must remain ready to defend national security regardless of such moves.

 

Trump: If Shutdown Persists, Layoffs Possible

 

On October 2, President Trump said in an interview that a prolonged government shutdown could lead to layoffs and project cuts. After the Senate rejected both parties’ funding bills on September 30, the federal government shut down at 12:01 a.m. on October 1, its first in nearly seven years.

 

Vice President Vance warned on October 1 that a prolonged shutdown could trigger layoffs. White House spokesperson Levitt said federal layoffs are “very likely” and could happen “soon.”

 

U.S. Energy Department Terminates $7.56 Billion in Renewable Energy Projects  

 

On October 2, the U.S. Energy Department announced the termination of 223 energy projects worth ~$7.56 billion, mainly in clean and renewable energy. States won by Democrats in last year’s election will be broadly impacted.

 

The department said the projects failed to meet standards for continued federal investment based on economic benefits, national security, and energy security. Recipients can appeal within 30 days.

 

UK Police Identify Manchester Terror Attack Suspect  

 

On the evening of October 2, UK counter-terrorism police identified the Manchester terror attack suspect as Jihad al Shamie, a 35-year-old Syrian-British man, killed by police at the scene.

 

Three others—two men in their 30s and a woman in her 60s—were detained for allegedly planning, executing, or inciting terrorism. Two men died at the scene, and three others with serious injuries remain in hospital.

 

U.S. Treasury Secretary Besant: Fed Chair Candidate Interviews to Conclude Next Week  

 

Treasury Secretary Besant said over half of the Fed candidate interviews are complete, with Fed chair candidate interviews continuing this week. The first round is expected to conclude next week.

 

Bridgewater’s Flagship Macro Hedge Fund Surges 26%, Poised for Best Year Since 2010  

 

Bridgewater’s flagship macro fund rose 26.4% in the first nine months, fueled by tariff-induced market uncertainty, heading for its best year since 2010.

 

A source said the past decade was tough for Bridgewater and other macro funds due to low interest rates reducing market volatility, their profit source. The Pure Alpha II fund’s annualized return from 2012 to 2024 was under 3%.

 

Ghana Illegal Gold Mine Collapse Kills at Least 7  

 

On October 2, Ghana’s National Disaster Management Agency confirmed a small-scale illegal gold mine in the Ashanti region collapsed on the evening of October 1, killing at least 7 and injuring others. The incident occurred around 6 p.m.

 

Rescue operations began overnight, with 5 miners rescued and receiving hospital treatment. Rescue efforts continue.

Company News

Tesla Q3 Deliveries Hit Record High, but U.S. Subsidy Phase-Out May Pressure Next Quarter  

 

Tesla delivered 497,099 vehicles in Q3, up 7.4%, a quarterly record exceeding market expectations. European sales were soft due to Musk’s political stance, but U.S. sales were buoyed by a pre-expiry tax credit rush. Demand is expected to weaken in October.

 

Amazon Launches New Private Label to Compete with Walmart and Costco  

 

On Wednesday, Amazon announced a new grocery private label, “Amazon Grocery,” integrating its Amazon Fresh and Happy Belly lines. The brand will offer over 1,000 grocery items, nearly all priced under $5 with customer ratings of 4 stars or higher.

 

“Amazon Grocery” directly competes with Costco’s Kirkland Signature and Walmart’s Great Value, aiming to strengthen the e-commerce giant’s influence among price-sensitive consumers amid inflation.

 

Boeing 777X Delivery Reportedly Delayed to 2027, Potentially Costing Billions  

 

Sources say Boeing’s 777X jet is now slated for commercial service in early 2027, not next year, marking another setback. Analysts estimate non-cash accounting charges of $2.5 billion to $4 billion, though Boeing hasn’t detailed costs.

 

The jet, delayed six years, is critical for Boeing’s competition with Airbus for the lucrative long-haul market. Executives plan to discuss the delay and costs on October 29 earnings.

 

Delta Air Lines Collision Data Recorder Found, Under Analysis  

 

The NTSB is analyzing a data recorder recovered from a Delta Air Lines collision. On October 2, U.S. media reported two Delta subsidiary Endeavor Air jets collided at low speed while taxiing at LaGuardia Airport, damaging one wing and causing one minor injury.

 

U.S. Financial Regulators Halted by Shutdown, IPO Filings Paused  

 

Due to the federal shutdown, most staff at key U.S. financial regulators began unpaid leave on October 1. Per the shutdown contingency plan, the SEC will furlough over 90% of staff, retaining ~393 for emergency enforcement and market oversight.

 

The CFTC said on September 30 that only 5.7% of its 543 employees will remain to oversee markets and prevent fraud. The SEC will process regular filings but pause IPO applications.

Forex & Commodities  

WTI crude futures fell 2.1%, closing at $60.48 per barrel. Brent crude futures fell 1.9%, closing at $64.10 per barrel.  

 

COMEX gold futures fell 0.43%, closing at $3,880.8 per ounce; COMEX silver futures fell 1.7%, closing at $46.87 per ounce.  

 

At the New York close, the dollar index rose 0.15% to 97.88, with most non-U.S. currencies falling.

Key Events

Top Forex Forecaster: Shutdown Heightens Dollar Risk, Fed Speeches Become Critical  

 

A top forex forecaster said that as the U.S. government shutdown enters its second day, the dollar may weaken further.  

 

The Washington deadlock has delayed Thursday’s weekly initial jobless claims data and may postpone Friday’s monthly nonfarm payrolls report. Jason Schenker, president of Prestige Economics, said in an interview that with economic data absent, policymakers’ remarks will provide traders with clues on the Fed’s rate path.  

 

“The government shutdown increases short-term downside risks for the dollar,” said Schenker, who has topped Bloomberg’s forex forecaster rankings for two consecutive quarters.

Cryptocurrency  

Bitcoin rose 1.35% in 24 hours, reaching $120,224.  

 

Ethereum (ETH-USD) rose 3.09% to $4,473.34.  

 

XRP (XRP-USD) rose 2.63%, BNB (BNB-USD) rose 6.14%, and Solana (SOL-USD) rose 5.60%.  

 

Dogecoin (DOGE-USD) rose 5.25%, and Cardano (ADA-USD) rose 1.63%.

Key Events  

CME Group announced it will offer 24/7 cryptocurrency futures and options trading starting in 2026.