Global markets began the week with cautious optimism on Monday, October 6, 2025, as U.S. tech strength provided a counterbalance to weaker sentiment in Europe. With several major Asian exchanges closed for holidays, trading volumes were subdued across the region. As investors look ahead to Tuesday, October 7, focus remains on inflation readings, bond yields, and signals from central banks about the global rate trajectory.

U.S. Markets: Tech Resilience Keeps Sentiment Steady

In the U.S., the Nasdaq rose 0.71% to close at 22,941.67, supported by solid gains in semiconductor and software shares. The S&P 500 added 0.36% to 6,740.28, while the Dow Jones Industrial Average slipped 0.14% to 46,694.97, weighed by industrial and financial names. The Russell 2000 gained 0.41%, reflecting ongoing interest in small-cap stocks amid easing inflation concerns.

Meanwhile, the U.S. Dollar Index inched up 0.05% to 98.16, signaling a modest flight to safety, while the VIX volatility index declined 1.68% to 16.37, underscoring continued investor calm. Market participants are now awaiting Federal Reserve commentary later this week for clarity on the pace of potential rate adjustments.

European Markets: Currencies and Inflation Weigh on Sentiment

Across Europe, equities struggled to gain traction. The FTSE 100 slipped 0.13% to 9,479.14, the DAX was virtually unchanged at 24,378.29, and France’s CAC 40 led declines, dropping 1.36% to 7,971.78.

The Euro Index weakened 0.28%, while the British Pound Index remained flat. Rising energy prices and tepid manufacturing data pressured sentiment, with investors recalibrating expectations for the European Central Bank’s next steps. Analysts suggest that if inflation continues to cool, the ECB may lean toward maintaining current rate levels for longer to support recovery.

Asian Markets: Holiday-Shortened Trading Across Major Exchanges

Asian trading was limited on Monday due to regional holidays. The Shanghai Stock Exchange and Shenzhen Stock Exchange were both closed for China’s National Day, while Hong Kong’s Hang Seng Index remained shut for the day following the Chinese Mid-Autumn Festival.

In South Korea, both the Seoul Stock Exchange and the KOSDAQ were closed for Chuseok, the country’s Thanksgiving Day.
Among open markets, Japan’s Nikkei 225 climbed 0.82% to 48,336.84, and South Korea’s KOSPI (which resumed briefly before the holiday) surged 2.70% to 3,549.21. Australia’s S&P/ASX 200 slipped 0.30%, while India’s SENSEX edged up 0.13%, signaling resilience across the broader Asia-Pacific region despite reduced liquidity.

Israel Market: Moderate Gains Before the Holiday Closure

In Israel, markets were closed for the Feast of Tabernacles (Sukkoth) following a positive session on Sunday, October 5. The TA-35 Index rose 0.33% to 3,210.22, while the TA-125 Index gained 0.62% to 3,270.22. Trading volumes were moderate ahead of the holiday, reflecting stability across both blue-chip and mid-cap segments.

Outlook for Tuesday, October 7, 2025: Inflation Data and Earnings on Watch

Looking ahead, investors are expected to track upcoming inflation prints in the U.S. and Europe, which may influence near-term rate expectations. Corporate earnings season is also set to pick up pace, with technology and banking sectors in focus.
While Asian markets are expected to gradually reopen, trading could remain uneven as investors digest holiday-driven slowdowns. The global narrative remains centered on balancing rate sensitivity with corporate fundamentals, suggesting another cautious but steady trading day on Tuesday.