3 Things That Will Move the Markets Today – 10/03/2025
Global stocks rally despite U.S. shutdown, Japan’s BOJ signals caution, and equity fund inflows hit 11-month high.
10/3/20251 min read
1. U.S. Stock Indexes Hit Records Amid Government Shutdown
Major U.S. stock indexes managed to post record closing highs even as the federal government shutdown entered its third day. The Dow rose 0.5% while the S&P 500 edged up 0.01%, and the Nasdaq slipped 0.3% despite the broader rally. Investors appeared to shrug off the shutdown’s impact, focusing instead on the outlook for rate cuts from the Federal Reserve and strong earnings from tech firms. The missing jobs report due to the shutdown clouded the data pipeline, increasing uncertainty around economic conditions.
2. Japan’s Central Bank Signals Caution and Global Risks
The Bank of Japan (BOJ) Governor Kazuo Ueda warned that while inflation is on track, global uncertainties such as U.S. labor weakness and elevated tariffs on Japanese firms could delay the next policy move. His remarks caused the yen to weaken and raised questions about the timing of further rate hikes.
3. Equity Fund Inflows Reach 11-Month High on Rate-Cut Hopes
Global equity funds attracted a net $49.19 billion in the week ending October 1, the largest inflow in nearly 11 months. U.S. funds alone accounted for $36.41 billion of that, boosted by expectations that the Fed may begin cutting rates soon. Technology and financial‐sector funds led the inflows, while short‐term bond funds saw outflows.
🐝 Quick Take (Buzz Summary)
Stocks rally even with U.S. shutdown, BOJ stays cautious, and global equity funds see biggest inflows in nearly a year.