Trump dismisses market fears 10/03/2025

HOT stories for today

US market wrap:
 

• On Friday, stocks rebounded from early losses after Federal Reserve Chair Jerome Powell reassured investors, stating in a speech that the U.S. economy remains on solid footing and that the central bank plans to keep interest rates unchanged until there’s more clarity on economic conditions. Despite this late-session recovery, the Dow slipped 2.4% for the week, while the S&P 500 tumbled 3.1%, briefly dipping below its 200-day moving average. Meanwhile, the Nasdaq Composite dropped 3.5%, momentarily entering and exiting correction territory. It marked the worst week for the markets since last September.
• Adding to investor frustration, the White House’s highly anticipated Crypto Summit wrapped up in a mere 21 minutes, leaving many underwhelmed. Meanwhile, the S&P indexes revealed their latest quarterly reshuffling. With earnings season winding down, traders are left grasping for direction, navigating the daily turbulence of global politics and shifting economic policies.

Trump dismisses market fears 

• Trump appears unfazed by Wall Street’s jitters, downplaying concerns over the uncertainty stemming from his tariff policies and the risk of rising costs. Despite the markets reaching a critical juncture—with the Nasdaq sliding into correction territory and the S&P 500 testing its 200-day exponential moving average—he seems relatively indifferent to the turbulence. If these key technical levels break, a wave of panic selling could ensue.
• Yet, the former president remains resolute, brushing off warnings from the business community and refusing to rule out the possibility of a recession this year. When asked about the Atlanta Fed’s cautionary note on a potential economic contraction in the first quarter, Trump appeared to acknowledge that his policies might weigh on U.S. growth. Nevertheless, he insisted the long-term impact would be “great for us.” Pressed on whether he anticipates a recession in 2025, Trump offered a characteristically vague response: “I hate to predict things like that. There is a period of transition because what we’re doing is very big. We’re bringing wealth back to America. That’s a big thing.” He then reiterated, “It takes a little time. It takes a little time.”

 
Stocks on the move: 
      

• Intuitive Machines ($LUNR -27%): The company revealed that its IM-2 lunar lander, Athena, touched down on its side, roughly 250 meters off target in the Mons Mouton region near the lunar south pole. Despite the setback, Stocktwits sentiment remained optimistic.
• Blackstone ($BX +1%): Secured $8 billion for its latest real estate debt fund, set to operate across North America, Europe, and Australia. The move aligns with investor interest in direct plays on an office space rebound.
• Mobileye Global ($MBLY +2%): The autonomous driving tech firm's stock gained over 2% after a regulatory filing revealed that Steve Cohen’s hedge fund, Point72, has acquired a 5% stake. Despite his bullish stance on AI, Cohen has stepped back from active trading.
• Walgreens Boots Alliance ($WBA +7%): Shares surged 7% after the drugstore giant announced it will be acquired by private equity firm Sycamore Partners for $11.45 per share in cash, offering an 8% premium over Thursday’s closing price.
• Wolfspeed ($WOLF +17%): The semiconductor firm announced workforce reductions to fast-track its transition to positive free cash flow. Plans include cutting 20% of its workforce while scaling back select manufacturing operations.

Today’s action

• Asian markets showed a mixed performance Monday after a turbulent global trading week. Japan’s Nikkei 225 led regional gains, edging up 0.24% in volatile trade, while the broader Topix reversed early advances to fall 0.26%. In China, Hong Kong’s Hang Seng Index dropped 2.11%, and the mainland CSI 300 slid 0.83% as deflationary pressures pushed consumer inflation below zero for the first time in over a year.
• Meanwhile, U.S. stock futures dipped ahead of a busy economic calendar. S&P 500 futures declined 0.42%, Nasdaq 100 futures fell 0.53%, and Dow futures slipped 144 points (-0.34%). Markets are bracing for a crucial week of data, including Monday’s New York Fed consumer expectations survey, Friday’s University of Michigan sentiment report, and key inflation readings—CPI on Wednesday and PPI on Thursday—that could shape the Fed’s next policy moves.

Wahtclist: AVGO, WBA, MBLY, COIN, ORCL, MARA, TQQQ 

Bitcoin

• Bitcoin tumbled over 5% on Monday, trading at $81,712 as volatility gripped the world’s largest cryptocurrency. The drop follows an executive order by President Donald Trump to establish a U.S. strategic bitcoin reserve, funded by seized assets from criminal and civil forfeiture cases.
• The government has no plans to buy additional bitcoin, disappointing investors who had hoped for a more aggressive accumulation strategy. Other cryptocurrencies also declined, though some analysts see the reserve move as a long-term bullish signal for the market.
  Watchlist: Bitcoin: 80 000-100 000, Ethereum:2000-2600, Solana: 120-176

Forex

• The Japanese Yen (JPY) continues to gain traction, buoyed by expectations of further Bank of Japan (BoJ) rate hikes and a narrowing U.S.-Japan rate differential. The USD/JPY pair remains near its lowest level since October after Friday’s weak U.S. jobs report. Japan’s base pay surged to a 32-year high in January, reinforcing confidence in sustained wage growth and bolstering rate hike speculation, keeping the JPY supported.
• Meanwhile, EUR/USD weakens to 1.0830, down 0.15%, as concerns over a global trade war weigh on risk sentiment. The pair holds a bullish bias above the 100-day EMA, but an overbought RSI may limit upside movement. Key resistance stands at 1.0900, while the next downside target is 1.0712. Investors now await German Industrial Production data and the Eurozone Sentix Investor Confidence report for further direction.
  Watchlist: EUR/USD: 1.0700-1.0900, USD/JPY: 148.7-150

Basic Materials

• Gold (XAU/USD) remains range-bound in Asian trading Monday, struggling to gain momentum. However, downside risks are limited as global trade war fears and expectations of Federal Reserve rate cuts provide support. The USD hovering near multi-month lows also acts as a tailwind for the precious metal, reinforcing its safe-haven appeal.
• Meanwhile, West Texas Intermediate (WTI) crude oil edges lower, trading just below $66.50, down 0.60%. Concerns over Trump’s trade tariffs potentially denting fuel demand weigh on prices, while OPEC+ plans to hike production from April add further pressure. However, Trump’s threats of new sanctions on Russia and a weaker USD offer some support, preventing a deeper slide.
  Watchlist: GOLD 2600-2945, US Oil: 66.00-79.00

Key Economic Events Today:

EST time
Enjoy your trading day!

Earnings

BMO (Before the US Market opens)
FNV            Franco-Nevada Corp.
BNTX          BioNTech SE
AMC (After the US Market closes): ORCL, MTN, ASAN


The TEFS Analyst team wishes you a successful day!