DFG Navigator Archives | October 2025
Your Capital Markets Snapshot: Shutdown Begins as Markets Stay Resilient
Beginning October 1, the U.S. government entered a shutdown, halting nonessential operations and delaying key economic data releases (including jobs and inflation reports). Leading up to this, economic growth has bounced back strongly from the negative Q1 result, driven by resilient consumer spending and record investments in artificial intelligence. The labor market has showed some signs of softening, with hiring slowing and Number of unemployed workers exceeding the number of open positions for the first time since 2021. Though, layoffs remain limited outside the government sector. The Federal Reserve recently resumed interest rate cuts and expectations are for another cut in October, in response to weaker labor indicators and continuing its latest decision-making amid data uncertainty. Equity markets remained resilient, with the S&P 500 reaching fresh all-time highs. AI innovation and the prospect of lower rates are fueling recent market strength, while historical precedent suggests shutdowns have minimal long-term impact on equities. Alternative assets like Bitcoin and gold rallied, while oil prices fell sharply due to oversupply concerns. Volatility ticked up modestly, but remained well below year-to-date highs, and earnings expectations for the upcoming season remained robust. Read more … Your Capital Markets Snapshot: Shutdown Begins as Markets Stay Resilient