Weekly Market Recap: October 6-12, 2025
Global markets fell last week as renewed US-China trade tensions and weak investor sentiment erased gains from the prior week. Donald Trump’s announcement of new tariffs on Chinese goods added pressure, pushing stocks, oil and cryptocurrencies lower.
Equity Markets
- Dow Jones: – 2.7% (YTD +6.9%)
- S&P 500: – 2.4% (YTD +11.4%)
- NASDAQ: – 2.5% (YTD +15.0%)
- MSCI EAFE: – 0.7% (YTD +23.4%)
- 10-Year US Treasury Yield: slightly lower at 4.06%
The market drop accelerated on Friday after Donald Trump announced new tariffs on Chinese goods. Stocks, already affected by weak economic data, fell further on concerns over supply chains and company profits. Bonds gained slightly (+0.3%) as investors moved toward safer assets, including US Treasuries, gold and high-quality bonds as market uncertainty increased.
Macroeconomics
Key economic reports were mixed and did little to offset trade concerns:
- Australia: Westpac Consumer Confidence fell -3.5%, below expectations (+3.2%), showing weak household sentiment.
- Canada: Ivey PMI rose to 59.8 from 50.1, indicating stronger business activity than expected.
- Germany: Trade surplus increased to €17.2B from €16.3B, supporting eurozone stability despite weak manufacturing.
- US: FOMC Minutes showed policymakers remain cautious about easing.
- Michigan Consumer Sentiment: rose slightly to 55.0
- US Unemployment Rate: steady at 7.1%, showing a soft but stable labor market.
Crypto Markets
Cryptocurrencies followed the decline in stocks:
- Bitcoin (BTCUSD): –6.8% to $115,100
- Ethereum (ETHUSD): –7.9% to $4,156
The drop came after the tariff news as traders moved out of risk assets. Crypto also moved more in line with stocks late in the week.
Global Markets
US-China trade tensions overshadowed otherwise stable economic data. Asian markets closed lower, and commodity-linked currencies weakened as investors remained cautious.
Conclusion
What started as a quiet week quickly turned risk-off after the tariff news hit. With confidence shaken and volatility returning, traders are approaching mid-October cautiously, keeping a close eye on upcoming earnings and any signals from the Fed.
Disclaimer: This content is for informational purposes only and is not financial advice.
