ADDX GO Market Morning Wrap - 4th Oct

Stock Market

On Friday (October 3), the three major U.S. stock indices had mixed performance, with the Dow and S&P closing at new highs.  

 

At the close, the Dow Jones Industrial Average rose 0.51% to 46,758.28 points; the S&P 500 edged up 0.01% to 6,715.79 points, both surpassing the previous day’s record closes; the Nasdaq Composite fell 0.28% to 22,780.51 points.  

 

Among the 30 Dow components, 22 rose and 8 fell. UnitedHealth, Travelers, Caterpillar, Johnson & Johnson, Goldman Sachs, and Visa gained over 1%, driving the Dow to outperform the other two indices.  

 

Although the Nasdaq closed lower on Friday, it gained 1.32% for the week, outperforming the Dow (+1.1%) and S&P (+1.09%). The small-cap Russell 2000 rose 0.72% on Friday, also hitting a new record, with a weekly gain of 1.72%.  

 

Despite the overall strength in U.S. stocks this week, Friday’s intraday rally showed signs of weakening. Star tech stock Palantir fell 7.47%, and Nvidia retreated 0.7% from its highs, with analysts noting some investors are using put options to hedge against potential future declines.  

 

Just before this report, the U.S. Senate again rejected temporary funding bills proposed by both parties, ensuring the federal government will remain in “shutdown.” Due to the Labor Department suspending nearly all economic activities, the September nonfarm payrolls report could not be released pre-market on Friday.  

 

While this removed a potential pressure point for stocks, it also reduced economic data available for the Fed’s October meeting. The CME’s “FedWatch” tool shows a nearly 95% probability of a 25-basis-point rate cut this month.  

 

Jennifer Timmerman, senior investment strategy analyst at Wells Fargo Investment Institute, commented, “The prospect of further Fed rate cuts, combined with earlier employment data signaling economic warnings, has solidified the stock market’s rally.”  

 

The previous day, Trump said in an interview that a prolonged government shutdown could lead to layoffs and project cuts. However, he added that, in another sense, Democrats have given him an “unprecedented opportunity” to streamline federal agencies.  

 

Brian Mulberry, senior client portfolio manager at Zacks Investment Management, previously said, “The market can tolerate a government shutdown for a few days. While it brings short-term chaos, successful streamlining of federal departments could be seen as a long-term positive.”

UN Secretary-General Calls for Seizing Opportunity to End Gaza Conflict  

 

On October 3, UN Secretary-General Guterres, through a spokesperson, issued a statement welcoming Hamas’s readiness to release hostages and engage based on President Trump’s recent proposal. Guterres called on all parties to seize this opportunity to end the tragic Gaza conflict.

 

He thanked Qatar and Egypt for their key mediation roles, reiterating the need for an immediate permanent ceasefire, unconditional release of all hostages, and unhindered humanitarian aid access to Gaza.

 

Trump: Believes Hamas Ready for Lasting Peace  

 

On October 3, President Trump posted on Truth Social that, based on Hamas’s recent statement, he believes they are ready for lasting peace. Trump urged Israel to immediately halt Gaza bombings to safely and quickly rescue hostages, noting the situation is too dangerous and discussions on details have begun.

 

He emphasized this concerns not only Gaza but also the long-sought peace in the Middle East. On the evening of October 3, Hamas announced it submitted a response to Trump’s “20-point plan” to mediators and is willing to negotiate its implementation through them.

 

U.S. Supreme Court Allows Government to Cancel Temporary Status for 300,000+ Venezuelan Immigrants  

 

On October 3, the U.S. Supreme Court ruled to allow the Trump administration to cancel Temporary Protected Status (TPS) for over 300,000 Venezuelan immigrants, overturning a California federal judge’s ruling that the decision was unlawful.

 

The Trump administration has begun revoking immigration protections, including TPS for ~600,000 Venezuelans and 500,000 Haitians from the Biden era. TPS, typically granted in 18-month cycles, allows legal residency and work in the U.S.

 

Cuba Foreign Ministry Condemns U.S. for Creating Pretexts for Military Action Against Venezuela  

 

On October 3, Cuba’s Foreign Ministry issued a statement strongly condemning the U.S. government’s ongoing military threats against Venezuela, accusing it of creating pretexts for military aggression.

 

The statement noted recent U.S. military buildup in the South Caribbean, illegal warplane incursions into Venezuela’s flight information region, and attacks destroying civilian vessels, causing casualties. The U.S. also announced expanding military operations to land-based actions.

 

Cuba criticized these as attempts to legitimize larger-scale military actions, violating the UN Charter and international law, warning that direct military action against Venezuela could trigger an incalculable armed conflict, undermining peace, security, and stability in Latin America and the Caribbean.

 

U.S. Senate Rejects Bipartisan Temporary Funding Bills, Shutdown Continues  

 

On October 3, the U.S. Senate voted on a Democratic temporary funding bill, which failed with 46 votes in favor and 52 against.

 

A Republican-proposed bill also failed to gain enough votes. The federal government will remain in “shutdown.” At 12:01 a.m. on October 1, the federal government shut down due to depleted funds, the first such occurrence in nearly seven years.

 

U.S. Government Shutdown Continues, Nuclear Security Agency Funds to Last ~8 Days  

 

U.S. Energy Secretary Chris Wright said that due to the ongoing shutdown, the National Nuclear Security Administration (NNSA) under the Energy Department has funds to sustain full operations for only ~8 days before entering “emergency shutdown procedures.”

 

Wright noted that if funds run out, the NNSA will retain only a small staff to ensure nuclear weapon safety, severely disrupting operations.

 

The NNSA oversees critical tasks like nuclear arsenal maintenance, nonproliferation, and naval nuclear propulsion, involving 65,000 employees and contractors. The Energy Department’s shutdown plan indicates ~60% of employees may be furloughed, with only 1,575 retained for “life and property protection.”

Company News

Berkshire Hathaway Amends Bylaws to Separate Chairman and CEO Roles  

 

According to an SEC filing, Berkshire Hathaway amended its bylaws to separate the roles of chairman and CEO.

 

Tesla Begins Selling Cybertruck in Qatar  

 

On Friday, Tesla said it has started selling its Cybertruck in Qatar, following its earlier expansion into Saudi Arabia this year.

 

Chevron Refinery in California Explodes and Catches Fire, Accounts for Over 16% of State’s Refining Capacity  

 

In El Segundo, near Los Angeles, California, a Chevron oil refinery exploded and caught fire. Flames lit up the night sky, visible kilometers away. Multiple emergency response teams rushed to the scene to extinguish the fire. The cause remains unclear, with no immediate reports of casualties.

 

Typically, the refinery employs one to two thousand workers and has its own fire brigade. The facility spans over 5 square kilometers, processes 269,000 barrels of crude daily, accounts for over 16% of California’s refining capacity, and supplies over 40% of Southern California’s aviation fuel and over 20% of vehicle fuel.

Forex & Commodities  

COMEX gold futures rose 1.14% to $3,912.1 per ounce, up 3.23% for the week; COMEX silver futures rose 3.45% to $47.97 per ounce, up 3.46% for the week.  

 

WTI crude futures rose 0.66% to $60.88 per barrel, down 7.4% for the week. Brent crude futures rose 0.66% to $64.53 per barrel, down 6.8% for the week.  

 

At the New York close, the dollar index fell 0.17% to 97.72, with most non-U.S. currencies rising.

Key Events

European Parliament Seeks to Accelerate Phase-Out of Russian Oil and Gas  

 

The European Parliament is considering speeding up the phase-out of Russian oil and gas imports to eliminate dependence on Russia, once the EU’s largest energy supplier.

 

Sources say the parliament’s industry committee will vote on amendments to the RePowerEU regulation, including halting Russian oil and petroleum imports from early 2026 and banning gas imports a year later, aligning pipeline gas bans with proposed maritime import sanctions. While sanctions are temporary, RePowerEU is a long-term plan to end reliance on Moscow.

Cryptocurrency  

Bitcoin rose 1.70% in 24 hours to $122,083.  

 

Ethereum (ETH-USD) fell 0.08% to $4,482.34.  

 

XRP (XRP-USD) rose 0.59%, BNB (BNB-USD) rose 7.71%, and Solana (SOL-USD) fell 0.35%.  

 

Dogecoin (DOGE-USD) fell 0.75%, and Cardano (ADA-USD) fell 0.07%.

Key Events

Investors Flock to “Digital Gold” for Safety, Bitcoin Surges Past $120,000  

 

Bitcoin surged strongly, breaking past $120,000 on Thursday, its first return to this level since setting a record high seven weeks ago. With the U.S. federal government shutting down again on Wednesday for the first time in nearly seven years, Bitcoin, as “digital gold,” has been viewed by investors as a safe-haven tool amid market turmoil, while gold pulled back after hitting a record.  

 

Karim Dandashy, an OTC trader at crypto trading firm Flowdesk, noted: “Macro themes have recently regained dominance in Bitcoin’s movement. Bitcoin ETFs have seen $1.5 billion in inflows this week, with markets seemingly trying to catch up to gold’s stunning gains in recent weeks.”  

 

David Lawant, head of research at FalconX, believes a long-awaited “breakout” in Bitcoin’s market structure may be unfolding: “Spot order books have shown persistent sell pressure for months, yet prices haven’t broken down significantly, indicating stronger buying support than hesitation. This is a classic ‘compressed spring’ pattern—once upside selling pressure is absorbed, the market could see rapid, cascading surges.”