Global Stocks Rally Despite US Shutdown Concerns
Market Overview
Global equities closed higher on October 2, 2025, with US and European benchmarks hitting fresh record highs as investors looked past the ongoing US government shutdown. Optimism over potential US rate cuts and resilience in industrials and tech-related shares supported overall sentiment, while Asia tracked the positive momentum.
US: Records Amid Shutdown
Wall Street extended its rally, with the Dow Jones $DJIA(.DJI)$
Europe: Chip and Industrial Rally
European stocks hit record highs for the second straight session, led by industrials and semiconductor-related shares. The DAX surged 1.3%, the CAC 40 gained 1.1%, while the FTSE 100 slipped 0.2% on profit-taking. Hopes of imminent US rate cuts added fuel to European optimism.
Asia: Rate-Cut Hopes Lift Markets
Asian equities advanced as weak US private-sector jobs data boosted expectations for more rate cuts. Japan’s Nikkei rose 0.9%, Hong Kong’s Hang Seng $HSI(HSI)$
Outlook and Insights
Despite political noise from Washington, markets remain driven by central bank policy expectations. Signs of labor market softening reinforce the case for rate cuts, keeping risk appetite elevated. However, sustained rallies may hinge on earnings season and geopolitical stability. Investors should balance optimism with caution, as volatility could return quickly.
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