On Friday, October 3, 2025, global stock markets continued their upward march, with both Wall Street and European indices buoyed by optimism surrounding artificial intelligence technologies and robust corporate news. In Paris, the CAC 40 gained 0.37% by mid-morning, adding 29.81 points to reach 8,086.44, marking its highest level since March, according to Capital. The previous day, the index had already jumped 1.13%, reflecting a broader trend of six consecutive days of gains across major markets.
Patrick Munnelly of Tickmill Group attributed this rally to the exuberance around artificial intelligence, which has been a driving force for tech stocks worldwide. "The rise in global equity markets has continued for a sixth straight day, fueled by enthusiasm around artificial intelligence technologies," he observed, highlighting the sector’s pivotal role in recent market dynamics. This sentiment was further amplified by the announcement of a partnership between OpenAI and South Korean chip giants Samsung and SK Hynix, a move that sent technology shares soaring on Thursday.
Meanwhile, investors kept a close watch on the United States, where the federal government entered its third day of a partial shutdown. The budget impasse, which has frozen a significant portion of the federal administration, also led to the suspension of several key economic indicators, notably employment data. According to Capital, this pause in data releases has stoked speculation that the U.S. Federal Reserve might soon consider lowering interest rates, as policymakers lack the usual economic signals to guide their decisions.
Market participants were especially attentive to the upcoming release of the ISM services activity index for September in the U.S., expected later on Friday. As Swissquote Bank analyst Ipek Ozkardeskaya explained, "These data will not replace the good old employment report, but a weaker-than-expected publication could give a boost to the doves at the Fed," referring to those in favor of rate cuts. This anticipation has kept pressure on U.S. yields and the dollar, while providing support for equities.
On Wall Street, futures contracts signaled modest gains at the open: the Dow Jones was set to rise by 0.09%, the S&P 500 by 0.05%, and the Nasdaq by 0.06%, according to Reuters. However, beneath the surface, a flurry of corporate developments captured the market’s attention.
Applied Materials, a leading chip equipment maker, forecasted a $600 million hit to its 2026 revenue after the U.S. Department of Commerce expanded export restrictions on October 1. The new rules, aimed at curbing Chinese and foreign firms from circumventing U.S. controls via subsidiaries, sent Applied Materials’ shares down 2.9% pre-market, while rival Lam Research dropped 1.8%. The move underscores the ongoing geopolitical tensions impacting the semiconductor industry.
Rare Earth US saw its stock surge 9.6% pre-market following comments from CEO Barbara Humpton, who told CNBC the company was "in close communication" with the White House over a potential agreement with the Trump administration. The news reflected heightened interest in domestic rare earth supply chains amid global trade uncertainties.
Coty’s Consumer Beauty division, under strategic review since October 1, faced skepticism from analysts about its sale prospects, citing aging brands and declining sales. Meanwhile, Tesla shares rebounded about 1% pre-market after a sharp 5% drop the previous day. Some analysts warned that the expiration of a $7,500 federal tax credit could dampen Tesla’s sales in upcoming quarters. Adding to the drama, a group of Tesla shareholders urged investors to vote against Elon Musk’s proposed $1 trillion compensation package at the company’s November general assembly, as reported by Reuters.
In the insurance sector, White Mountains Insurance announced the sale of a majority stake in its Bamboo distribution platform to European private equity firm CVC, valuing Bamboo at $1.75 billion. Occidental Petroleum, fresh off selling its petrochemical division to Berkshire Hathaway, is now better positioned to focus on oil and gas investments. CEO Vicki Hollub told Reuters that the lost cash flow from the divested unit could be replaced within two and a half years.
Defense and technology companies also made headlines. Palantir, Anduril, and others involved in modernizing the U.S. Army’s battlefield communications network were flagged for "very high risk" security vulnerabilities in a recent internal Army memo. General Dynamics’ IT division secured a $1.25 billion contract to support U.S. Army operations in Europe and Africa, just a week after landing another $1.5 billion U.S. defense contract.
In the tech and media space, Google and NBCUniversal reached a multi-year agreement on October 2 to keep shows like Sunday Night Football and America’s Got Talent on YouTube TV, ending a tense negotiation period. Boeing, however, faced setbacks as Bloomberg reported the company’s 777X aircraft delivery would be delayed to early 2027, a year later than previously planned.
Elsewhere, Rumble’s stock soared 13% pre-market after announcing a strategic partnership with AI startup Perplexity, while BlackRock’s Global Infrastructure Partners entered advanced talks to acquire Aligned Data Centers for a reported $40 billion, according to Reuters sources.
Apple made waves by removing ICEBlock—the most popular app for tracking U.S. immigration agents—and similar apps from its App Store on October 2, following contact from the Trump administration. Oracle confirmed that hackers were attempting to extort its clients through blackmail emails, corroborating an alert first raised by Google on October 1.
In the healthcare sector, the U.S. Food and Drug Administration approved Jazz Pharmaceuticals’ Zepzelca in combination with Roche’s Tecentriq as a maintenance therapy for a type of lung cancer. Meanwhile, Rocket Pharmaceuticals withdrew its U.S. authorization request for an experimental gene therapy aimed at treating a rare hereditary blood disorder.
Back in Europe, automaker Stellantis continued to impress investors. Its U.S. subsidiary FCA US reported delivering 324,825 vehicles in the latest quarter, a 6% year-over-year jump, with September sales alone leaping 16%. Stellantis shares traded up 1.57% at €8.95 by mid-morning in Paris, as reported by Capital.
Despite the ongoing U.S. government shutdown and uncertainty over Federal Reserve policy, markets have shown remarkable resilience, powered by optimism in technology and solid corporate performance. Investors, for now, seem content to ride the wave of AI enthusiasm and await further signals from economic data and central bank deliberations.
