Market Update: October 1, 2025

Markets paused last week as the government shutdown added to an already noisy backdrop. When uncertainty rises, it rarely stays contained. It spreads across prices, sectors, and investor psychology.

Weekly Market Brief
Economic data showed stronger growth and steady housing, but sentiment remained muted. U.S. equities slipped, with growth and small caps reversing prior gains. Energy led on higher oil prices, while Europe advanced and emerging markets weakened. Bonds fell as yields moved higher, and commodities rose despite a stronger dollar.

Theme of the Week
Nvidia’s large investment in OpenAI shows the circular relationship between AI firms and hyperscalers. The question is whether trillions in capital spending will translate into lasting revenue. Momentum is powerful, but reversals come when valuations stretch and expectations overheat.

Notes from the Optimizer
Momentum is costly to resist, but reversal is costly to ignore. Incorporating momentum controls can limit drawdowns and allow portfolios to benefit when trends shift.

The information above has been obtained from sources considered reliable, but no representation is made as to its completeness, accuracy or timeliness. All information and opinions expressed are subject to change without notice. Information provided in this report is not intended to be, and should not be construed as, investment, legal or tax advice; and does not constitute an offer, or a solicitation of any offer, to buy or sell any security, investment or other product.