On Monday, Oct. 5, U.S. stock futures retreated as technology equities cooled following record-breaking levels achieved on Friday. Concurrently, the U.S. dollar advanced as market participants sought safe-haven assets amid worries surrounding French debt and high costs for government borrowing.
In corporate news, merger and acquisition announcements drove gains for PTC and RXO shares. Meanwhile, market participants prepared for upcoming U.S. services data and continued to evaluate the future path of Federal Reserve interest rates.
U.S. Stock Futures Turn Lower Before the Open
In premarket trading, Dow futures decreased by 101 points (0.2%), S&P 500 futures fell 14.25 points (0.18%), and Nasdaq 100 futures slid 78.25 points (0.25%). Earlier, at 8:13 a.m. ET, Dow futures had traded up 0.07%, S&P 500 futures had ticked up 0.02%, and Nasdaq futures had registered a 0.11% decline.
Losses in the chip sector pressured the broader market. Intel shares dropped over 4%, and Micron Technology shares dipped 0.3% in a subsequent update. Conversely, Nvidia shares added about 0.5% after hitting a record peak on Friday.
Friday’s upward market momentum stemmed from softer-than-anticipated employment figures. That report lowered expectations for an October interest rate hike and pushed the Nasdaq to new peaks.
Dollar Gains as Euro Falls on French Debt Concerns
The dollar moved close to an 18-month high relative to a currency basket. At the same time, the euro dropped as much as 0.8% below USD 1.12 to reach its lowest mark since May 2025 before mounting a minor recovery. The euro has slipped approximately 1.2% over the course of the month. In Europe, France’s CAC 40 index fell 1%, whereas Britain’s FTSE 100 rose 0.2%.
Yields on 10-year French government bonds hit a peak not seen since 2002 during the previous week. The spread between French and German borrowing rates stretched to its widest margin since 2012. To curb its deficit, the French administration has put forward €54 billion in proposed savings. Political uncertainty also grew following Spain’s announcement of an early election, though Madrid’s IBEX 35 index managed a 0.5% increase.
Fed Pause Expectations Rise Despite High Bond Yields
Based on CME FedWatch data, traders priced in an 80% likelihood that the Federal Reserve will maintain current interest rates during the upcoming meeting. Financial markets still largely anticipated a rate increase in December. Driven by anxieties over national finances, heavy debt supply, and elevated energy prices, the benchmark 10-year U.S. Treasury yield sat at 5.277%, staying near multiyear highs.
Brent crude traded slightly higher close to USD 100 a barrel amid lingering supply anxiety regarding Gulf oil infrastructure disruptions. On Friday, G-7 nations announced an agreement to release diesel and crude inventories.
Precious metals saw upward movement as well, with spot gold increasing 0.4% to reach USD 4,159.89 an ounce by 11:38 GMT. U.S. gold futures for December maturity climbed 0.64% to USD 4,188.70, though appreciation was constrained by a strong dollar.
PTC and RXO Shares Rally Following Acquisition Agreements
In earlier premarket activity, PTC shares surged 35.7% after Schneider Electric reached a deal to purchase the software enterprise. This all-cash transaction values the equity of PTC at approximately USD 22.6 billion. In a separate announcement, RXO shares jumped 24% following an agreement by C.H. Robinson Worldwide to buy the transportation broker via a stock-and-cash deal valued at USD 5.8 billion.
Shares of Cerebras Systems advanced 4.4% in the same update after Sam Altman, chief executive officer of OpenAI, characterized the semiconductor designer as a “close partner.” He noted that the two organizations share “deep engagement pushing on the frontiers of speed.”
Nvidia shares grew 1.3% on Friday, pushing the firm’s market capitalization just shy of USD 5.7 trillion. That advance broke a seven-week period of sideways trading, delivering the enterprise’s initial record closing price since May.
Services Data and Earnings Reports Draw Investor Attention
Shortly following the opening bell on Monday, two reports detailing U.S. services sector activity for September were scheduled for release. Investors were also readying themselves for the kickoff of the quarterly corporate earnings season. Firms accounting for roughly 70% of the S&P 500 market capitalization are slated to post results prior to the conclusion of October. Analysts at Goldman Sachs project annual earnings growth of 9% for the median firm within the index.
Internationally, Japan’s Nikkei advanced more than 2%, while mainland Chinese exchanges remained closed for the Golden Week holiday.
In Brazil, the real gained strength against the dollar after Flávio Bolsonaro secured a first-place finish ahead of President Luiz Inácio Lula da Silva in Sunday’s initial presidential vote. Brazilian equities were positioned for gains on the back of the outcome, which forces a runoff election between the two contenders.
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