ADDX GO Market Morning Wrap - 25th Oct
Stock Market
On Friday Eastern Time, all three major U.S. indices hit record closing highs, driven by mild inflation data that bolstered investor optimism about the Federal Reserve continuing its rate-cut path, supporting economic growth and higher stock valuations.
(Intraday Chart of Major Indices, Source: TradingView)
At the close, the Dow Jones Industrial Average rose 1.01% to 47,207.12 points, the S&P 500 gained 0.79% to 6,791.69 points, and the Nasdaq climbed 1.15% to 23,204.87 points.
(Weekly Chart of Major Indices, Source: FactSet)
Pre-market Friday, data showed U.S. September CPI rose 3.0% YoY, slightly below economists’ expectations of 3.1%, and 0.3% MoM, below the forecast of 0.4%. Core CPI, excluding food and energy, rose 3.0% YoY and 0.2% MoM, both below expected 3.1% and 0.3%.
The September CPI report, originally due October 15, was delayed due to the ongoing U.S. government shutdown. The White House warned Friday that next month’s inflation data may not be released due to the shutdown.
Post-CPI, traders increased bets on Fed rate cuts at the remaining two meetings this year. According to the CME FedWatch tool, the probability of a December cut jumped from ~91% pre-data to 98.5%, while next week’s cut remained above 95%.
Expectations of further cuts stimulating economic activity lifted bank stocks. JPMorgan, Wells Fargo, and Citigroup each rose ~2%, with Goldman Sachs and Bank of America also gaining.
Lindsay Rosner, multi-fixed income portfolio manager at Goldman Sachs Asset Management, said: “Today’s mild CPI report has nothing to unsettle the Fed. We still expect policy easing at next week’s meeting. With data scarcity, the Fed has little reason to deviate from its dot plot, so a December cut remains highly likely.”
Major indices rose for a second straight week, with all three up ~2% weekly. Year-to-date, the S&P 500 is up 15%, and the Nasdaq is up 20%.
Global Hotspots
Bernanke and Yellen Lead Nearly 50 Economists Urging Supreme Court to Overturn Trump’s Tariff Policies
Ben Bernanke, Janet Yellen, and other prominent economists urged the U.S. Supreme Court to overturn most of President Trump’s global tariff measures, arguing they are based on a misunderstanding of the global economy.
In a legal brief filed Friday, nearly 50 economists stated that trade deficits between the U.S. and other nations are a “normal phenomenon,” not the “unusual and extreme” threat cited by the Trump administration to justify broad tariffs under emergency laws. They added that tariffs themselves cannot reduce trade deficits.
U.S. September CPI Comes in Below Expectations
Pre-market Friday, data showed U.S. September CPI rose 3.0% YoY, slightly below economists’ expectations of 3.1%, and 0.3% MoM, below the forecast of 0.4%. Core CPI, excluding food and energy, rose 3.0% YoY and 0.2% MoM, both below expected 3.1% and 0.3%.
The September CPI report, originally due October 15, was delayed due to the ongoing U.S. government shutdown.
Eurozone September Inflation Rises to 2.2%
On October 24, Eurostat reported the Eurozone’s annual inflation rate rose to 2.2% in September 2025, up from 2.0% in August; EU-wide inflation was 2.6%, up slightly from 2.4% last month.
A year ago, Eurozone and EU inflation rates were 1.7% and 2.1%, respectively.
U.S. Government Shutdown Hits Day 24, Over 500,000 Federal Workers Unpaid
On October 24, as the U.S. government shutdown reached its 24th day, over 500,000 federal employees missed full paychecks this week. The Senate is currently in recess, with the shutdown expected to continue until at least Monday.
Russian Presidential Envoy Confirms U.S. Arrival for Continued Dialogue
On October 24, Dmitry Dmitriev, Russia’s Presidential Special Representative for foreign investment and economic cooperation and head of the Russian Direct Investment Fund, confirmed via social media in English and Russian that he arrived in the U.S. for continued U.S.-Russia dialogue at U.S. invitation.
Such talks are vital globally and must proceed with full understanding of Russia’s stance and respect for its interests.
Canadian PM: Committed to Resuming U.S. Trade Talks
On October 24, Canadian Prime Minister Mark Carney said Canada remains “ready to resume trade talks with the U.S. when they are prepared.” Carney added: “When Americans are ready, we’re prepared to advance these discussions and build on progress, as it will benefit both U.S. and Canadian workers.”
Germany’s Bird Flu Spreads Nationwide, Control Measures Tightened
On October 24, Germany’s Friedrich-Loeffler-Institut reported that the H5N1 highly pathogenic avian flu virus has spread to nearly all federal states, with infections detected in dead wild birds across the country except Bremen.
Company News
IBM Quantum Algorithm Runs on AMD Chips, Both Stocks Soar to Record Highs
On Friday Eastern Time, AMD and IBM hit intraday record highs. At the close, AMD rose 7.63%, and IBM gained 7.88%.
Intraday, IBM executives said the company successfully ran a critical quantum computing error-correction algorithm on standard AMD chips, a potential milestone toward commercializing quantum supercomputers.
IBM’s research chief, Jay Gambetta, said in an interview: “This shows our algorithm works in the real world and on off-the-shelf AMD chips that aren’t outrageously expensive.”
Gambetta added: “More importantly, we not only achieved the algorithm but measured performance up to 10x faster than theoretical requirements, which is significant.”
EU Preliminarily Finds Meta Violates Digital Services Act, Faces Hefty Fines
On October 24, the European Commission said it preliminarily found Meta in violation of the EU’s Digital Services Act. If Meta fails to address the violations, it could face fines up to 6% of its global revenue.
The Commission cited Meta’s failure to provide researchers adequate data access, hindering evaluation of its measures to protect users from illegal or harmful content. The EU criticized Meta’s “overly cumbersome procedures,” leading to incomplete or unreliable research data.
It also faulted Meta’s Facebook and Instagram for lacking user-friendly mechanisms to report illegal content and effective appeal channels for content removal or account suspensions. Meta denied the violations, saying it has adjusted reporting options, appeal processes, and data access tools per EU rules.
The investigation, launched last year, is part of the EU’s broader enforcement of the Digital Services Act.
JPMorgan to Allow Institutional Clients to Use Bitcoin, Ethereum as Collateral
JPMorgan plans to allow institutional clients to use Bitcoin and Ethereum as loan collateral by year-end, marking Wall Street’s deeper integration into the crypto ecosystem.
Eli Lilly Bolsters Gene Therapy with Bet on One-Shot Vision Cure
On Friday (October 24), U.S. pharma giant Eli Lilly announced it will acquire biotech firm Adverum Biotechnologies, Inc., adding its experimental product Ixo-vec to its pipeline.
Under the offer, Lilly will acquire all of Adverum’s outstanding common stock at $3.56 per share, plus a non-transferable contingent value right (CVR) of $8.91 per share—potentially up to $12.47 per share if milestones are met.
Per the terms, shareholders will receive up to $1.78 per share in cash if Ixo-vec is approved within seven years of the deal’s close, and up to $7.13 per share if it achieves $1 billion in global annual sales within ten years.
Forex & Commodities
International crude futures settled slightly lower. WTI crude fell 0.47% to $61.5/barrel, up 7.6% weekly. Brent crude dipped 0.08% to $65.94/barrel, up 7.59% weekly.
COMEX gold futures fell 0.65% to $4,118.5/oz, down 2.25% weekly. COMEX silver futures dropped 0.6% to $48.42/oz, down 3.36% weekly.
At the New York close, the dollar index was flat at 98.94, with non-U.S. currencies mixed.
Key Events
Crude: WTI Holds Steady as Traders Weigh Russia Sanctions Impact
Oil prices stabilized near a two-week high as traders assessed whether new U.S. sanctions on Russia’s largest oil producers can offset global oversupply concerns.
WTI was little changed, settling near $61/barrel, up 7% this week, after the U.S. blacklisted Rosneft and Lukoil to cut Moscow’s revenue for the Ukraine conflict. Russia’s crude exports to key buyer India are expected to drop significantly.
Trend-following funds are also increasing long positions, fueling a short-squeeze in oil markets.
“Unless there’s a downside shock, every scenario in coming sessions will trigger massive programmatic buying,” said Dan Ghali, senior commodity strategist at TD Securities.
Cryptocurrency
Bitcoin rose 0.35% in 24 hours to $110,959.
Ethereum (ETH-USD) gained 1.35% to $3,928.
XRP (XRP-USD) surged 5.67%, BNB (BNB-USD) fell 2.80%, and Solana (SOL-USD) rose 0.31%.
Dogecoin (DOGE-USD) gained 1.62%, and Cardano (ADA-USD) rose 1.85%.
Key Events
Once Called a “Pet Rock” by Dimon, Bitcoin Now Set for JPMorgan Loan Collateral
JPMorgan plans to allow institutional clients to use Bitcoin and Ethereum as loan collateral by year-end, marking deeper Wall Street integration into crypto.
The global program will rely on third-party custodians for token storage. Previously, JPMorgan accepted crypto-related ETFs as collateral, and this move expands on that. A JPMorgan spokesperson declined to comment.