The Markets (as of market close October 3, 2025)
Stock trader optimism over AI stocks and expectations of a Federal Reserve rate cut helped propel equities to record highs last week. The S&P 500, Dow, and NASDAQ all reached new peaks despite the ongoing government shutdown, which delayed several key data releases. Tech and chipmakers led the rally, while energy lagged due to falling oil prices. Ten-year Treasury yields edged lower, and gold prices climbed nearly 3% for the week.
Last Week’s Economic News
- The Bureau of Labor Statistics did not release September employment data due to the government shutdown.
- Job openings held steady at 7.2 million in August, with hires and separations unchanged at 5.1 million. Quits and layoffs remained stable.
- U.S. manufacturing expanded for a ninth straight month, though growth slowed slightly. The September PMI fell to 52.0 from 53.0, as tariffs weighed on exports.
- The services sector continued to grow modestly in September, with the PMI slipping to 54.2 from 54.5. Rising input costs and wages contributed to price pressures.
- Gasoline prices declined to a national average of $3.12 per gallon on September 29, down from a year ago. All major regions saw price decreases.
Eye on the Week Ahead
With limited data expected, attention will turn to next week’s Consumer Price Index report for fresh insight into inflation trends and potential monetary policy direction.
Have a nice week!
Sincerely,
Robert G. Carpenter
President & CEO
Baltimore-Washington Financial Advisors