ADDX GO Market Morning Wrap - 11th Oct

Stock Market

Overnight into this morning, a sharp plunge in U.S. stocks brought back memories of early April’s rough days.  

 

On Friday, U.S. markets opened higher but nosedived mid-session, with losses widening in the afternoon. The S&P 500 fell 2.71% to 6,552.51 points, its worst single-day drop since April; the Nasdaq Composite slumped 3.56% to 22,204.43 points, also its worst since April; the Dow Jones Industrial Average dropped 1.9% to 45,479.6 points.  

 

Crude oil and nonferrous metals took a beating, with investors flocking to safe-haven assets like Treasuries and gold. WTI crude plummeted over 4%, nearing its yearly low. London copper fell 4.5%. Spot gold reclaimed the $4,000 per ounce mark, while 10-year Treasury yields dropped nearly 8 basis points.  

 

Major tech stocks broadly declined: Broadcom fell nearly 6%, Tesla dropped 5.06%, Amazon slid nearly 5%, Nvidia fell 4.89%, Apple and Meta dropped over 3%, and Microsoft and Google fell over 2%. Refer to the finance card above for price charts of AVGO, TSLA, AMZN, NVDA, AAPL, META, MSFT, and GOOGL.

 

Bitcoin, trading nonstop, saw wild swings, with intraday losses exceeding 10% before this report.  

 

Given the market’s relentless rally since April, a pullback was already expected. Many analysts warn that recent developments could signal a substantial correction.  

 

Interactive Brokers’ chief strategist Steve Sosnick said, “This isn’t the news traders wanted to hear. The market’s reaction reflects both policy impacts and the over-optimism of recent investors.”  

 

Adding to the gloom, Russell Vought, director of the White House Office of Management and Budget, announced on social media that with the government shutdown hitting day 10, federal employee layoffs have officially begun.

Global Hotspots

U.S. Government Shutdown Persists, Funding Votes Paused  

 

On October 9, the Senate made its seventh attempt to pass a temporary funding bill to end the federal government shutdown, but both Republican and Democratic drafts failed.

 

U.S. media reports that the Senate will halt related votes this week, meaning the shutdown will last at least into next week.

 

Fed Chair Selection Narrows from 11 to 5, Wall Street Awaits Power Shift  

 

Sources indicate that after interviews, Treasury Secretary Scott Bessent has narrowed the Fed chair candidate list from 11 to 5, with a nominee expected as early as January for the Fed’s Board of Governors.

 

White House: Federal Layoffs Have Begun  

 

On October 10, Russell Vought, director of the White House Office of Management and Budget, posted on X that as the shutdown enters its 10th day, federal layoffs have started. Vought stated, “The layoffs have begun,” without further details.

 

A Department of Education spokesperson confirmed on October 10 that the department is included in the latest layoffs, with more cuts expected, though specifics remain undisclosed.

 

Fed Governor Waller: Expects More Rate Cuts but Urges Caution  

 

On Friday, Fed Governor Christopher Waller said he supports further rate cuts but stressed caution amid mixed economic signals. In an interview, Waller noted, “I still think we need to cut rates, but we must proceed carefully.”

 

Japan’s “Takaichi Trade” Faces Challenges, Opposition Considers Joint PM Candidate  

 

With “Abenomics” disciple Sanae Takaichi elected LDP president, expectations of fiscal expansion drove Japan’s benchmark index to new highs this week, while the yen weakened to early-year levels. But on Friday, Takaichi’s path to becoming Japan’s next prime minister hit a snag.  

 

Reports say Komeito leader Tetsuo Saito informed Takaichi in a meeting that, due to disappointment over her handling of a “political slush fund” scandal, Komeito is ending its 26-year coalition with the LDP.  

 

The coalition’s collapse clouds Takaichi’s prospects of becoming Japan’s first female prime minister.

Company News

Tesla Launches Low-Cost Model Y in Europe  

 

On Friday, Tesla introduced a budget Model Y Standard SUV in Europe, priced at €39,990 (~$46,304) in Germany—€5,000 cheaper than prior versions—to boost demand in a sluggish region. The model starts at ~$41,700 in Norway and ~$52,500 in Sweden, with deliveries set for November to December.

 

Industry experts note Tesla faces competition from European and Chinese brands with EVs priced below €35,000, and its ability to revive sales remains uncertain.$TSLA 

 

U.S. Fertilizer Giant Hit by Plant Disruptions  

 

U.S. fertilizer producer Mosaic (MOS) fell 9.24% on Friday. The company said mechanical failures and utility disruptions slashed phosphate plant output to ~1.7 million tons in Q3, below expectations, with sales also missing targets. Already pressured by U.S. tariffs and declining farmer spending, Mosaic’s phosphate business lost $8 million in Q2.

 

Analysts say while the production drop was modest, investors are frustrated by another “missed target.”$MOS 

Forex & Commodities  

Oil prices fell on October 10. NYMEX WTI crude futures for the front-month contract dropped $2.61 to $58.90 per barrel (-4.24%); Brent crude futures fell $2.49 to $62.73 per barrel (-3.82%).  

 

COMEX gold futures for the front-month contract rose $27.80 (+0.70%) to $4,000.4 per ounce.  

 

At the New York close, the dollar index fell 0.57% to 98.84, with most non-U.S. currencies rising.

Key Events

Precious Metals CEO Predicts Gold to Break $5,000 Next Year  

 

Wheaton Precious Metals Corp CEO Randy Smallwood said: “I believe gold will break $5,000 next year… At this pace, $10,000 per ounce by 2030 wouldn’t surprise me.” He noted that silver markets have been in a supply deficit, with inventories “nearly depleted.”

 

Wheaton finances miners upfront for discounted future output. Fueled by geopolitical risks and tight physical supply, investors are flocking to precious metals, driving gold’s surge and benefiting Wheaton.

Cryptocurrency  

Bitcoin fell 7.15% in 24 hours to $112,953.  

 

Ethereum (ETH-USD) dropped 11.42% to $3,870.48.  

 

XRP (XRP-USD) fell 14.93%, BNB (BNB-USD) dropped 11.70%, Solana (SOL-USD) fell 14.34%.  

 

Dogecoin (DOGE-USD) dropped 20.83%, Cardano (ADA-USD) fell 20.33%.

Key Events

Goldman Sachs, BofA, and Others Form Stablecoin Alliance  

 

On Friday, ten global banks, including Santander, Bank of America, Barclays, BNP Paribas, Citi, Deutsche Bank, Goldman Sachs, MUFG, TD Bank, and UBS, announced plans to explore issuing a “1:1 reserve-backed digital currency for stable payment assets on public blockchains.”