06 Oct 2025
China, Japan, France, and Bitcoin see global gains as US government shutdown continues
On Monday, major stock indexes experienced a slight uptick, driven primarily by a surge in technology shares following the announcement that Advanced Micro Devices (AMD) secured a significant AI chip supply agreement with OpenAI.
This development has reignited enthusiasm in the tech sector, highlighting the growing importance of artificial intelligence in driving market dynamics. Meanwhile, the Japanese yen and euro faced depreciation against the U.S. dollar, attributed to political shifts in Japan and France. In Japan, the ruling Liberal Democratic Party elected a new leader, while in France, the newly formed government resigned just hours after its establishment.
In the cryptocurrency market, Bitcoin remained close to its all-time high, with its value increasing by 1.61% to reach $124,755.87. This rise reflects a growing trend among investors who are increasingly viewing alternative assets, such as cryptocurrencies, as a viable store of value amid the ongoing uncertainty surrounding the U.S. government shutdown. The situation has prompted many to seek refuge in assets that are perceived as less vulnerable to traditional market fluctuations.
The euro weakened slightly, down 0.2% at $1.1717, as the political landscape in Europe continues to evolve. The abrupt resignation of French Prime Minister Sébastien Lecornu, which came just 14 hours after he appointed his cabinet, has added to the political instability in the region.
This instability is compounded by the recent selection of Sanae Takaichi as the new leader of Japan's ruling party, positioning her to potentially become the first female prime minister of the nation. Takaichi is known for her support of former Prime Minister Shinzo Abe's "Abenomics" strategy, which aims to invigorate the Japanese economy through aggressive fiscal spending and a policy of low interest rates.
On Wall Street, the S&P 500 and Nasdaq saw gains, while the Dow Jones Industrial Average experienced a slight decline, dropping by 76.88 points, or 0.17%, to close at 46,681.40. The ongoing U.S. government shutdown, which commenced last week, has created an air of uncertainty in the markets. Despite this, the S&P 500 managed to finish the previous week at a record closing high, indicating a resilient market sentiment.
Peter Cardillo, the chief market economist at Spartan Capital Securities, noted that the market is maintaining its momentum and appears to be largely unaffected by the government shutdown. He suggested that there is a growing belief among investors that the Federal Reserve may adopt a more lenient approach than previously anticipated.
Looking ahead, the Federal Reserve is widely expected to reduce interest rates by 25 basis points during its upcoming meeting on October 28-29, especially in light of recent data indicating a weakening labor market. Cardillo also pointed out that the third-quarter earnings season is approaching, and early indicators suggest it could be another strong period for corporate earnings, which may further bolster investor confidence.
In the semiconductor sector, shares of AMD surged over 28%, reflecting optimism surrounding artificial intelligence partnerships and the broader implications for the tech industry. Other chip manufacturers also benefited from this positive sentiment, as the demand for AI-related technologies continues to grow.
The increasing integration of artificial intelligence across various sectors is likely to drive further investment and innovation within the technology landscape, making it a focal point for investors in the coming months.
Overall, the interplay between political developments, economic indicators, and technological advancements is shaping the current market environment, creating both challenges and opportunities for investors as they navigate through this complex landscape.
