As October 2025 unfolds, global financial markets continue to grapple with a persistent state of volatility, driven by a confluence of economic shifts, evolving monetary policies, and geopolitical uncertainties. In this dynamic environment, investors are increasingly scrutinizing their strategies, with a particular focus on investment style rotation—the tactical shifting
On the second day of the U.S. government shutdown, Wall Street remains largely subdued, with indexes showing only slight midday declines after touching fresh record highs at the open.
Market breadth indicators show continued stabilization with a slight improvement compared to the end of September. While participation across moving averages and advancing stocks remains solid, the lack of stronger follow-through signals points to a market that is steady but not yet showing decisive upward momentum.
The customary weekly jobless claims report is expected to show that the number of individuals claiming unemployment benefits rose to 222,000 in the week ended Sept. 27 from 218,000 in the previous week.
After Monday’s solid uptick, Tuesday’s breadth eased but stayed constructive. Daily advancers remained just over 50%, “above-MA” gauges slipped marginally, and the weekly window is still net-negative though improving. Net takeaway: stabilization continues, but momentum flattened.
On Monday, September 29, breadth metrics showed a slight cooling after Friday’s strong recovery, but overall conditions remain balanced. Short-term momentum softened, while longer-term structural strength is still intact, keeping the trend tilted toward neutral with a positive bias.
In Tuesday’s session, traders are likely to focus on a few speeches by Federal Reserve officials, the August JOLTS data, and the Conference Board’s consumer confidence index for September.
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Wall Street kicked off the week with modest gains in technology and growth names, while small caps and blue chips stalled as investors braced for a flood of economic data, culminating on Friday with the September labor market report.
After Thursday’s sharp deterioration in breadth, Friday delivered a notable rebound across all key indicators. The percentage of advancing stocks surged, and short-term breadth metrics stabilized. However, medium-term participation remains fragile, and confirmation through continued improvement next week is essential to shift the broader bias.
Wall Street moved modestly higher by midday Friday, yet major indexes remain on pace to break a three-week winning streak. At midday, the S&P 500 was up 0.4% to 6,630, while the Nasdaq 100 gained 0.2% to 24,440. The Russell 2000, the benchmark small-cap index, rebounded 0.5%.
The BEA’s personal income and spending report for August is expected to show a 2.7% year-over-year increase in the personal consumption expenditure (PCE) index, up from the 2.6% rate in July.
After a cautious warning sign on Wednesday, Thursday’s breadth numbers confirmed the shift in tone. Decliners overwhelmed advancers, short-term momentum fell back below key thresholds, and new highs nearly vanished. The data now reflects a clear deterioration in market participation.
Wall Street retreated on Thursday, with major indexes heading for a third straight day of losses as stronger-than-expected economic data reduced hopes for near-term Fed rate cuts and lifted the dollar.
