Stock Market Weekend Update Saturday October 4, 2025

Stock Market Weekend Update Saturday October 4, 2025 Despite limited economic data due to the government shutdown, market volatility can benefit investors. Underinvested portfolio managers and individual investors may view market dips as opportunities to buy stocks at lower prices.

The S&P 500 is currently at 669.21 and has reached record highs this week. We think it could reach at least 688 which is our next target price by the end of the year, Historically, the stock market tends to do well from October to December. Investors shouldn't worry too much about the shutdown and should take advantage of any temporary drops in the market to buy stocks at a lower price.

The fact that we aren't getting BLS data, like the September jobs report, might make the Federal Reserve keep its current policies at the next FOMC meeting. This is good for stocks and cryptocurrencies because it means that monetary policy is likely to remain supportive.

In conclusion, the government shutdown is a temporary problem. Investors should concentrate on the strength of the stock market, as the S&P 500 is likely to keep increasing. Investing in gold and Bitcoin can be a good addition to a portfolio focused on growth, using both traditional and digital safe investments.

Sector Performance

This week's standout sectors included: Healthcare: Life sciences, biotechnology, and pharmaceuticals exhibited robust short-term momentum, signaling a potential breakout. However, the sector continues to lag the broader S&P 500 on a longer-term basis, suggesting selective exposure is warranted. Semiconductors: Continued strength reflects sustained demand for technology infrastructure. Consumer Electronics: Resilient consumer spending supports upside potential.

Equity Market Outlook

The S&P 500 achieved fresh all-time highs this week, as highlighted in the accompanying finance card. Technical analysis suggests the index could advance an additional 30-80 points, despite potential resistance in mid-October. Momentum indicators imply the rally retains sufficient fuel for further gains, barring unforeseen shocks.

Investor Activity and Sentiment

MSTR Recovery: MicroStrategy (MSTR) is rebounding, reflecting renewed investor confidence in growth-oriented assets. Bitcoin ETFs: Strong inflows into Bitcoin exchange-traded funds signal rising institutional and retail interest in digital assets. Crypto Trading Volumes: Elevated trading activity in Bitcoin (BTC) and Ethereum (ETH) underscores growing market participation, potentially driven by portfolio reallocation. More money is being invested in Bitcoin ETFs, and more investors are trading Bitcoin and Ethereum. This shows that investors are becoming more interested in digital currency.

Gold-to-Bitcoin Rotation

Gold prices appear overbought, with crowded positioning indicating a potential peak. Historical patterns suggest capital may rotate from traditional safe-haven assets like gold into Bitcoin, which could catalyze further upside for BTC in the near term.

Macroeconomic Context

The ongoing government shutdown has disrupted key economic data releases, notably the Bureau of Labor Statistics' September jobs report. This absence of updated labor market data is likely to reinforce the Federal Reserve's dovish posture at the upcoming FOMC meeting. While ADP payrolls slightly underperformed expectations, the miss is insufficient to raise significant growth concerns, providing a supportive backdrop for risk assets, including cryptocurrencies.

Government Shutdown Update

The government shutdown is now in its fourth day, causing ongoing disruptions to federal operations. The Senate will vote on Friday afternoon. Due to Senate rules, budget bills can be filibustered, meaning Republican leaders need 60 votes to move the legislation forward. Upcoming Deadline: Congress plans to approve the 12 remaining spending bills in the next few weeks. To avoid another shutdown, they must meet a critical deadline of November 21.

S&P500 SPY ETF Weekly Chart