The Bull Market turns Three: What’s next for stocks? 10/10/2025

HOT stories for today

US market wrap:

• The market declined on Thursday, drawing attention toward alternative “safe-haven” assets and the start of a new earnings season. Silver surged to record highs above $51 per ounce. The metal outperformed gold, oil, and Bitcoin, as all three retreated alongside a broader drop in equity prices. The S&P 500 and Nasdaq briefly reached record levels earlier in the day, but mounting warnings about a potential AI-driven bubble had been echoing throughout the week. 
• The federal government shutdown extended into its ninth day on Thursday, following the Senate’s seventh unsuccessful attempt to approve a temporary funding measure. Signs of progress between Republicans and Democrats remain scarce. As the deadlock persists, investors are finding it challenging to identify new catalysts amid a shortage of U.S. government economic data. Corporate earnings released Thursday from Delta Air Lines and PepsiCo were upbeat, hinting at resilient consumer demand. Nevertheless, the positive reports weren’t sufficient to sustain the stock market rally throughout the day.

The Bull Market turns Three: What’s next for stocks?

• The bull market that began in October 2022 celebrates its third anniversary this week, with stocks showing few signs of slowing. What started as a tech-led surge has broadened across sectors, a development analysts say could sustain the rally. After a brief tariff-driven selloff in April, the S&P 500 rebounded at record speed, marking the fastest recovery to new highs after a 15% drop, according to Dow Jones Market Data. Smaller companies, cyclical names, and defensive stocks are now participating.
• “Rotation is the lifeblood of a bull market,” said Carson Group strategist Ryan Detrick. All 11 S&P 500 sectors are in positive territory this year, with industrials and utilities leading gains. Gold has joined the rally, hitting record highs near $4,077 an ounce as doubts persist over the Federal Reserve’s ability to cool inflation. Since 1950, bull markets have lasted an average of 4.6 years, delivering roughly 160% returns. The current one, up 89% since 2022, still looks relatively young. While rich valuations and AI-fueled enthusiasm raise concerns of a short-term pullback, strategists say any dip could offer a buying opportunity. Investors are now turning their attention to third-quarter earnings, with major banks set to kick off their results on October 14.

Stocks on the move:

• Applied Digital ($APLD) rose 12% in after-hours trading after reporting revenue growth to $64 million from $35 million last year, though losses widened during the period.
• Levi Strauss ($LEVI) slipped despite topping estimates on both revenue and earnings per share. The decline may reflect soft forward guidance, with projected EPS capped at $1.32, just one cent above analysts’ consensus.
• Oracle ($ORCL) gained more than 3% after Baird initiated coverage with an “outperform” rating and a $365 price target, citing the company’s strong position in the artificial intelligence sector. The stock has been volatile lately but is still up about 4% for the week.
• MP Materials ($MP) advanced after BMO Capital Markets reinstated coverage with a “market perform” rating, calling it the U.S. “rare earth champion.” The rally followed news of a partnership with the Department of Defense. At the same time, China’s move to tighten rare earth export controls added further momentum ahead of a potential meeting between former President Donald Trump and Chinese leader Xi Jinping.

Watchlist: AMD, DAL, PEP, NVDA, ORCL, MU, AAPL, RGTI

Today’s action

• Asia-Pacific markets traded lower on Friday, mirroring Wall Street’s declines as investors weighed the latest economic signals. Futures for Hong Kong’s Hang Seng Index pointed to a weaker open, while European markets were set for a muted start as traders assessed a Trump-backed Gaza ceasefire proposal. 
• U.S. stock futures were little changed after both the S&P 500 and Nasdaq Composite pulled back from record highs in Thursday’s session. As of early Friday, S&P 500 and Nasdaq 100 futures were up less than 0.1%, while Dow Jones Industrial Average futures gained 40 points, or 0.08%. The corporate earnings season is expected to pick up pace next week, with major banks, including Citigroup ($C) and JPMorgan Chase ($JPM), set to report their third-quarter results. Investors will also be watching for fresh insight into consumer sentiment, with the latest U.S. data due at 10 a.m. ET on Friday.

Bitcoin
 

• The U.K.’s largest retail investment platform, Hargreaves Lansdown, has advised traders to approach cryptocurrencies with caution. “The HL Investment view is that bitcoin is not an asset class, and we do not believe cryptocurrency possesses the characteristics suitable for inclusion in portfolios aimed at growth or income,” the firm stated. 
• The warning comes shortly after the U.K. lifted its longstanding ban on retail investors trading crypto exchange-traded notes (ETNs) on October 8. Bitcoin ($BTC) was last trading around $121,249, giving it a total market capitalization of approximately $2.42 trillion.
  Watchlist: Bitcoin: 98 000-126 500, Ethereum: 4000-4980, Solana: 180-240
   

Forex

• The U.S. Dollar Index (DXY) slipped below 99.50 in early European trading on Friday, easing to around 99.30 as the prolonged U.S. government shutdown weighed on sentiment. The political impasse in Washington showed no signs of resolution, adding to pressure on the greenback. Meanwhile, minutes from the latest FOMC meeting indicated that Federal Reserve officials anticipate two more rate cuts by the end of 2025.
• The Japanese yen initially strengthened after Japanese authorities issued verbal warnings against excessive currency moves, prompting a modest pullback in the U.S. dollar from a two-month high. However, the yen’s gains proved limited as domestic political uncertainty and fiscal challenges continued to undermine confidence, making any sustained appreciation difficult.
  Watchlist: EUR/USD: 1.0700-1.1880, USD/JPY: 148-153

Basic Materials

• Gold traded weaker for a second straight session on Friday, staying depressed below the $4,000 level. The metal continues to attract sellers, though downside momentum remains limited. A slight pullback in the U.S. dollar from a two-month high provided some support, while expectations of Federal Reserve rate cuts, ongoing geopolitical tensions, and the prolonged U.S. government shutdown helped cushion losses.
• Meanwhile, West Texas Intermediate (WTI) crude extended its decline for a second consecutive day, slipping further below $61.00 per barrel. Easing geopolitical risks and concerns that the U.S. government shutdown could dampen energy demand weighed on prices. From a technical perspective, the setup favors the bears, suggesting a risk of additional near-term downside.
  Watchlist: GOLD: 2600-4080, US Oil: 55.60-75.80

Key Economic Events Today:

EST time

09:45 am: USD FOMC Member Goolsbee Speaks
10:00 am: USD Consumer Sentiment, Inflation Expectations


Earnings

BMO (Before Market Open):

No significant earnings today!



The TEFS Analyst team wishes you a successful day!