Market Volatility and Policy Shifts Dominate Week Ending October 3, 2025

U.S. equities closed a turbulent week with modest losses as a Friday rally partially offset earlier declines. The S&P 500 slipped 0.31%, while the Nasdaq-100 retreated 0.50% and the Dow Jones Industrial Average edged down 0.15%, breaking three-week winning streaks. Record highs set Monday evaporated after Federal Reserve Chair Jerome Powell's noncommittal policy remarks triggered a selloff.

Tech stocks remained volatile as investors questioned AI-related valuations. The sector faced additional pressure from renewed tariff concerns after the TRUMP administration imposed new duties on imported pharmaceuticals and heavy-duty trucks. Semiconductor reshoring initiatives gained momentum, signaling potential supply chain realignments.

Cryptocurrencies exhibited muted reaction to traditional market movements, with major tokens maintaining established trading ranges. Market participants await clearer signals on monetary policy and its potential impact on risk assets.