Bulls Stay Strong as Shutdown Continues 06/10/2025

HOT stories for today




 

US market wrap:

• The S&P 500 slipped from its record high on Friday but still managed to post solid weekly gains, even as the U.S. government shutdown dragged into its third day. The broad-market index ended little changed, inching up 0.01%, while the Nasdaq Composite fell 0.28%. The Dow Jones Industrial Average outperformed, climbing 238.56 points, or 0.51%. 
• Equities lost some steam in the afternoon as key technology names, including Palantir Technologies, Tesla, and Nvidia, pulled back. Palantir led the S&P 500’s decline, tumbling 7.5%, while Tesla and Nvidia slipped just over 1% and nearly 1%, respectively. The CBOE Volatility Index (VIX) spiked, indicating that some investors were seeking protection against a potential market downturn through put options. At the same time, the ongoing government shutdown continued to dampen sentiment as Senate funding proposals failed again, prolonging the stalemate. Meanwhile, Bitcoin surged over the weekend, notching a new all-time high (ATH) despite broader market uncertainty.

Private Credit Boom Fuels New Bubble Fears

• An increasing number of analysts are warning that asset bubbles may be forming in parts of the market, a risk that could set the stage for a broader correction. Saxo Bank’s latest note urged investors to “don’t predict, prepare,” highlighting a disconnect between record-high equity indices and historically weak consumer sentiment. The bank recommended diversifying portfolios to guard against volatility.
• Warning signs are also emerging in credit markets. Barnaby Martin of Bank of America said their latest survey showed one of the “largest credit overweights in 20 years,” pointing to rising concerns about speculative excess. Adding to jitters, U.S. auto parts maker First Brands filed for bankruptcy last week, revealing $12 billion in hidden debt. Short-seller Jim Chanos told the Financial Times he expects “more of these cases,” comparing the private credit boom to the pre-2008 subprime bubble.

Stocks on the move:

• Sarepta Therapeutics (SRPT): Shares of the biotech firm jumped 6%, though no clear catalyst was immediately identified. The move extends Sarepta’s gains to more than 20% over the past three months.
• Starbucks (SBUX): The coffee giant’s stock advanced 2.6% after the company announced a modest boost to its dividend payout. Starbucks raised its quarterly cash dividend from $0.61 to $0.62 per share.
• Occidental Petroleum (OXY) and Berkshire Hathaway (BRK.B): Occidental slid 6% even after Berkshire revealed plans to acquire the oil producer’s petrochemical arm, OxyChem, for nearly $10 billion in cash. Berkshire’s Class B shares edged down 0.2%.
• Fair Isaac (FICO): The analytics and credit-scoring firm surged 19% after introducing a new platform granting mortgage lenders direct access to FICO scores. Meanwhile, credit bureaus TransUnion (TRU) and Equifax (EFX) dropped 12% and 9%, respectively.

Today’s action:

• Japan’s Nikkei 225 index surged over 4% to a record high on Monday after the ruling Liberal Democratic Party chose Sanae Takaichi, a staunch conservative, as its new leader, paving the way for her to become Japan’s first female prime minister. Meanwhile, Hong Kong’s Hang Seng Index slipped 0.22%, and the Hang Seng Tech Index fell 0.66%. Chinese and South Korean markets were closed for holidays.
• U.S. stock futures were mostly flat Sunday night as the government shutdown continued, following a week of record Wall Street gains. Dow futures rose 37 points (0.1%), while S&P 500 and Nasdaq-100 futures each added 0.1%. The shutdown has delayed key economic reports, including the September jobs data, originally due Friday. Still, several Federal Reserve officials, including Stephen Miran and Jerome Powell, are scheduled to speak this week.

                                             Watchlist: COIN, MSTR, HOOD, RGTI, OKLO, NVDA, AAPL


Bitcoin:

• Bitcoin (BTC) surged past $125,000 on October 5, 2025, marking a new all-time high and extending its “Uptober” rally with a 2.25% daily gain. The move was fueled by strong institutional inflows into U.S. spot Bitcoin ETFs, which attracted $3.24 billion in just one week.
• BlackRock’s iShares Bitcoin Trust (IBIT) now holds more than 890,000 BTC, while major banks such as Standard Chartered and Citigroup have raised their year-end targets to $ 135,000 and $ 133,000. Shrinking supply and surging demand continue to reinforce Bitcoin’s upward momentum as 2025 heads into its final quarter.
  Watchlist: Bitcoin: 78,000–126,000,  Ethereum: 4,600–5,000,  Solana: 200–215

Forex:

• The EUR/USD hovers near 1.1700, holding losses as bets on a Fed rate cut curb further downside. The U.S. Dollar firmed, with the CME FedWatch Tool pricing in 95% odds of an October cut and 84% for December. The Euro remains supported by expectations of a cautious ECB stance.
• The Japanese Yen tumbled to a two-month low after Sanae Takaichi became leader of Japan’s ruling LDP, while the Nikkei 225 hit a record high on stimulus hopes, weighing on the safe-haven JPY. However, Fed cut expectations, and the U.S. shutdown may cap USD/JPY gains.
  Watchlist: EUR/USD: 1.1600–1.1750, USD/JPY: 148–151

Commodities

• Gold prices climbed to a record high above $3,900 as the U.S. government shutdown drags on. During Monday’s early Asian session, gold extended gains to around $3,920, supported by concerns over a prolonged shutdown and expectations of further Fed rate cuts, with two more reductions anticipated this year.
• Meanwhile, WTI crude advanced to about $61.55 after a smaller-than-expected OPEC+ output increase of 137,000 barrels per day starting in November. Ukraine’s continued strikes on Russian energy infrastructure also added to supply concerns.
  Watchlist: Gold: 3,000–4,000, WTI Crude: 60.00–68.00
  
  
  
  Key Economic Events Today (EST):
  
  No major economic data today
  
  
  Earnings Calendar:
  
  BMO (Before Market Open)
  
  -
  
  AMC (After Market Close): STZ, AEHR
  
  
  
  The TEFS Analyst Team wishes you a successful trading day!