
Written by Curation
US equities powered through political noise this week, with the S&P 500 posting three straight record closes despite the ongoing federal government shutdown.
Source: Connect Weekly | Week ending 4 October 2025
US equities powered through political noise this week, with the S&P 500 posting three straight record closes despite the ongoing federal government shutdown. A surprise dip in private payrolls and resilient sector leadership helped offset macro uncertainty, while record call-option activity on Friday signalled bullish positioning into Q4. The Russell 2000 joined the rally with fresh all-time highs, even as the Nasdaq 100 lagged slightly into the weekend.
Monday’s early strength faded as shutdown fears capped gains, though the S&P 500 still closed higher. Cannabis stocks surged after President Trump reposted a video touting CBD products as a key senior health initiative. On Tuesday, equities finished the quarter strong, with the S&P 500 up 3.5% for September, its best in 15 years, and 7.8% for Q3. By Wednesday, investors brushed aside the shutdown entirely as weaker private payrolls boosted expectations for two more rate cuts in 2025. Healthcare led after the White House confirmed no new pharma tariffs, propelling Eli Lilly, Amgen, Roche, and GSK higher.
Thursday and Friday brought a rare trifecta: three consecutive all-time highs for the S&P 500, the longest winning streak since July. The Russell 2000 also hit new highs, underscoring broader participation beyond the megacaps. Friday’s session saw record-breaking call-option volume, over 52 million contracts traded, as traders bet the rally would continue into earnings season. Crypto joined the risk-on momentum, with Bitcoin breaking to new all-time highs alongside equities and crypto-linked stocks extending gains.
The immediate focus now shifts to the unfolding US government shutdown, which is delaying key economic data including the non-farm payrolls report. With fresh inflation readings also at risk of postponement, investors will have to navigate without clear macro signals. The key question for the coming week: can markets sustain their record-breaking optimism without hard data to back it up?
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