Global equities ended Thursday, October 2, 2025, with a cautiously optimistic tone as U.S. markets delivered small gains, Europe rallied across major benchmarks, and Asia posted selective strength. However, holiday closures in China and South Korea limited trading activity in parts of the region. As investors head into Friday, October 3, focus remains on currency movements, U.S. economic data, and whether European and Asian rallies can sustain momentum.

Wall Street Edges Higher Amid Cautious Optimism

U.S. markets showed resilience on Thursday, as all three major indexes closed higher. The S&P 500 gained 0.06% to 6,715.35, while the Dow Jones Industrial Average added 0.17% to finish at 46,519.72. The Nasdaq outperformed, rising 0.39% to 22,844.05, supported by strength in large-cap technology stocks. The Russell 2000 also gained 0.66%, reflecting appetite for risk in small-cap equities.

Volatility ticked higher, with the VIX up 2.09% to 16.63, though levels remain far below stress thresholds. The U.S. Dollar Index was nearly unchanged at 97.88, highlighting investor confidence in steady near-term policy signals. However, Brazil’s IBOVESPA fell 1.08% to 143,949.64, marking one of the day’s sharpest losses as domestic economic concerns weighed on Latin American equities.

European Equities Rally Despite Currency Pressures

European equities recorded strong gains on Thursday, with major indexes advancing across the board. Germany’s DAX rose 1.28% to 24,422.56, France’s CAC 40 gained 1.13% to 8,056.63, and the Euro Stoxx 50 climbed 1.16% to 5,645.81. The broader ^N100 index rose 0.95%, while the MSCI Europe edged up 0.29%.

The rally came even as currency weakness weighed on sentiment. The Euro Index slipped 0.10% to 117.18, and the British Pound Index fell 0.27% to 134.41, showing ongoing concerns about inflationary dynamics and monetary policy outlooks. London’s FTSE 100 bucked the regional trend, slipping 0.20% to 9,427.73, pressured by declines in energy and resource-linked names.

Asia Mixed as Holidays Limit Trading Activity

Asian markets were mixed, with some strong performances offset by weaker sentiment in Hong Kong and India. South Korea’s KOSPI surged 2.70% to 3,549.21, while Japan’s Nikkei 225 rose 1.46% to 45,592.97. Australia’s S&P/ASX 200 added 0.38% to 8,980.10, and China’s SSE Composite gained 0.52% to 3,882.78. In contrast, India’s Sensex slipped 0.21% to 80,809.43, while Hong Kong’s Hang Seng dropped 0.92% to 27,035.96.

Important note: The Shanghai Stock Exchange and Shenzhen Stock Exchange in China were closed for National Day, alongside South Korea’s Seoul Stock Exchange and KOSDAQ. This limited overall liquidity in Asia and concentrated activity in Japan, Australia, and India.

Tel Aviv Remains Closed Since September 30

There is no update from the Israeli market today, as the Tel Aviv Stock Exchange has been closed since September 30, 2025. Investors will look for trading resumption updates in the coming sessions, with recent strength in Israeli equities still fresh in market memory.

Outlook for Friday, October 3, 2025

Heading into Friday’s session, investors will closely monitor U.S. macroeconomic releases, including labor market data, for clues on the Federal Reserve’s policy trajectory. In Europe, inflation readings remain a key driver, while in Asia, markets will stay partly subdued due to continuing National Day holidays in China and South Korea. With Wall Street showing modest momentum, Tel Aviv still closed, and currencies under pressure, traders will remain cautious about volatility spikes heading into the weekend.