Key Takeaways

• On 2 October 2025, the market press review highlights investor caution as the US stock market prepares for a decisive earnings season amid economic uncertainty and changing policy signals.
• Top story: US equities brace for a pivotal earnings season in the face of persistent economic challenges and increased investor scrutiny.
• The Federal Reserve is monitoring labor market dynamics, with wage inflation influencing future rate decisions.
• The Eurozone manufacturing PMI indicates a slowdown, raising concerns about regional growth forecasts.
• Gold prices rise as investors look for safety during global market volatility.
• Ongoing attention on how economic indicators may affect policy and investment sentiment.

Introduction

On 2 October 2025, the US stock market approaches a critical earnings season against a backdrop of economic uncertainty. The Federal Reserve is closely tracking labor market trends and wage inflation as factors guiding policy. Today’s market press review also examines global manufacturing shifts and renewed investor interest in safe haven assets.

Top Story

Fed Meeting Minutes Show Growing Rate Cut Consensus

Federal Reserve officials increasingly agree on the need to begin reducing interest rates, according to minutes from their September meeting released on 2 October 2025. Several committee members cited easing inflation data and signs of labor market moderation as reasons supporting a policy pivot by early 2026.

The minutes detail discussions about the timing and pace of potential rate cuts, with a number of members preferring a gradual approach. Core PCE inflation has decreased for six consecutive months, reaching 2.4% in August.

Market participants adjusted their expectations following the release. Fed funds futures now reflect three quarter-point cuts by December 2026. Treasury yields fell across the curve, with the benchmark 10-year note down 12 basis points.

Analysts observe that this marks a notable change from the Fed’s previous “higher for longer” approach. Goldman Sachs and JPMorgan have updated their outlooks to incorporate earlier rate cuts, though estimates on timing differ.

Also Today

Tech Sector

TSMC reported record quarterly orders for advanced AI processors, noting that demand exceeds current production capacity. The company announced a $12 billion investment in new manufacturing facilities to support increasing orders from major cloud providers.

Microsoft revealed expanded enterprise AI tools and additional data center capacity throughout Europe. The company projects 40% growth in cloud revenue for the next fiscal year.

Energy Markets

Global oil prices held steady after leading producers signaled plans to maintain output through the end of the year. Brent crude traded near $82 per barrel following the announcements.

Investment in global clean energy reached $1.8 trillion in the first three quarters of 2025, according to Bloomberg NEF. Solar and wind projects represented 65% of total spending during this period.

Market Wrap

US Markets

The S&P 500 gained 0.8% after the release of the Fed meeting minutes. Technology and consumer discretionary sectors led the advances, while utilities underperformed.

Global Indices

European equity markets ended mixed, with the STOXX 600 rising 0.3%. Asian markets were mostly positive, led by the Nikkei 225’s 1.2% increase.

Currency and Commodities

The dollar index fell 0.5% against major currencies. Gold prices increased by 1.1% to $2,150 per ounce as lower yields supported demand for safe assets.

What to Watch

• US Consumer Price Index release: 15 October 2025
• ECB Monetary Policy Meeting: 24 October 2025
• Q3 earnings reports begin: 14 October 2025
• G20 Finance Ministers Meeting: 20 October 2025

Conclusion

Today’s market press review highlights a clear shift in Federal Reserve sentiment, with growing agreement on lowering interest rates in response to moderating inflation and labor trends. These factors are influencing tech investment, commodity prices, and overall market sentiment, setting a tone of cautious optimism for the coming weeks. What to watch: the upcoming US CPI data, the start of the Q3 earnings season, and major central bank meetings through late October.