Quick overview
- This week’s equity sentiment will be influenced by key corporate earnings reports from major companies like Tesla, Intel, and Netflix.
- Gold experienced a historic rally, reaching an all-time high of $4,379 per ounce, but faced a sharp $200 pullback due to profit-taking.
- U.S. stocks lost momentum amid banking concerns and renewed U.S.-China trade tensions, prompting investors to seek defensive assets.
- The euro strengthened against the U.S. dollar as expectations of further Fed easing grew, while the Japanese yen gained amid a cautious stance from the Bank of Japan.
Live BTC/USD Chart
BTC/USD
This week’s equity sentiment will hinge on a series of corporate earnings, such as Tesla, Intel, Netflix, IBM, T Mobile, Coca Cola, General Motors etc.
Gold’s Historic Rally Faces Sharp Reversal
Gold shattered records last week, surging over $110 in a single session to hit $4,379 per ounce, a fresh all-time high. The metal’s momentum was powered by falling Treasury yields and technical buying, as investors continued to accumulate despite broader equity weakness.
However, profit-taking set in on Friday, triggering a sharp $200 pullback. The sustained rally underscores conviction that the Federal Reserve’s next move will be a rate cut, reducing the appeal of U.S. yields and reinforcing gold’s role as a preferred hedge.
Equities Lose Steam Amid Banking and Trade Jitters
U.S. stocks opened higher but reversed quickly as financial-sector losses deepened. Zions Bancorp disclosed a $50 million writedown tied to potentially fraudulent loans, reigniting fears of broader lending irregularities following First Brands’ bankruptcy.
Meanwhile, U.S.-China trade tensions resurfaced, with new rhetoric but little progress, prompting investors to retreat into defensive assets and dragging major indices off their highs.
Fed Commentary Keeps Markets Guessing
Remarks from Fed Governor Christopher Waller added to policy uncertainty. He maintained the possibility of a 50-basis-point cut, emphasizing caution amid signs of a cooling labor market.
Waller’s tone aligned with broader FOMC guidance, suggesting the central bank had already seen weak September employment data before the government shutdown—reinforcing the Fed’s dovish bias.
Currencies Mirror Diverging Central Bank Paths
The euro climbed against the U.S. dollar, supported by lower Treasury yields and declining oil prices, which boosted expectations of further Fed easing later this year.
The Japanese yen also gained after a Bank of Japan official signaled no rush to cut rates—highlighting the growing policy divergence between Japan’s cautious stance and the Fed’s dovish shift.
Key Market Events to Watch This Week: Earnings Calendar for the week
This week’s earnings lineup spans multiple sectors—from AI chips to beverages—offering a broad snapshot of corporate and consumer health.
Stronger-than-expected reports could support risk-on flows and lift the USD, while any major disappointments—especially from Tesla or Netflix—may trigger safe-haven demand for the JPY and gold.
Major Earnings This Week
Tesla (TSLA)
- Earnings: Q3 2025 results – After Market Close (AMC)=
- EPS Expectation: $0.55
- Focus: Delivery margins, price cuts in China, and progress on Full Self-Driving revenue.
- Impact: High potential to sway Nasdaq futures and risk-sensitive currencies like JPY and AUD.
Netflix (NFLX)
- Earnings: Q3 2025 – AMC
- EPS Expectation: $6.97
- Focus: Subscriber growth post-price increases and performance of ad-supported tiers.
- Impact: Tech momentum driver; strong results could lift Nasdaq-linked sentiment.
Intel (INTC)
- Earnings: Q3 2025 – AMC
- EPS Expectation: $0.01
- Focus: AI chip rollout progress and margins amid fierce competition.
- Impact: Semiconductor trends could ripple into broader tech valuations and USD performance.
IBM (IBM)
- Earnings: Q3 2025 – AMC
- EPS Expectation: $2.45
- Focus: Cloud and AI segment growth, enterprise service demand resilience.
- Impact: Seen as a barometer for tech enterprise spending outlook.
T-Mobile (TMUS)
- Earnings: Q3 2025 – Before Market Open (BMO)
- EPS Expectation: $2.43
- Focus: Subscriber retention, 5G expansion, and cost management.
- Impact: Stable results could bolster telecom and defensive equity sentiment.
General Motors (GM)
- Earnings: Q3 2025 – BMO
- EPS Expectation: $2.33
- Focus: Electric vehicle profitability and strike-related cost impacts.
- Impact: Industrial and manufacturing-linked currencies (CAD, MXN) may react.
Barclays (BCS)
- Earnings: Q3 2025 – BMO
- EPS Expectation: £0.54
- Focus: Investment banking income and credit provisions.
- Impact: GBP and FTSE futures could respond to profit outlooks and loan book trends.
Coca-Cola (KO)
- Earnings: Q3 2025 – BMO
- EPS Expectation: $0.78
- Focus: Global demand recovery, input cost management, and emerging market exposure.
- Impact: Consumer sector sentiment gauge; may influence defensive asset flow.
Will Gold Resume Uptrend and Reverse Friday’s Crash?
Although demand for safe haven assets is still high, gold fell precipitously from record highs following the Fed’s most recent rate decrease as profit-taking was prompted by Powell’s cautious tone. Earlier this week, gold jumped beyond $3,700 and reached $3,707.42 following the Federal Reserve’s announcement of a 25 basis point rate decrease to 4.25%. But the impetus soon waned, and prices dropped back to $3,627, a $80 decline from the new all-time high. As traders locked in profits after the rally driven by dovish predictions, there was a sudden fall but buyers returned on Friday pushing the price $60 higher. Yesterday buyers continued to push and XAU reached another record high at $4,379 but on Friday we saw a $200 crash.
USD/JPY Returns to 150
Foreign exchange markets saw sharp swings. Early in the week, U.S. yield differentials and Japanese capital outflows pushed the dollar above ¥150, but disappointing U.S. jobs data triggered profit-taking, causing the USD/JPY to slide by four yen from its peak. However, the new BOJ governor the JPY has weakened and USD/JPY soared to 153 but returned below 152 yesterday.
USD/JPY – Weekly Chart
Cryptocurrency Update
Bitcoin Returns to $110K
Cryptocurrencies remained highly active over the summer. Bitcoin (BTC) climbed to fresh highs of $123,000 and $124,000 in July and August, supported by institutional inflows and technical strength. However, remarks from Treasury Secretary Scott Bessent ruling out U.S. increases to BTC reserves triggered a steep pullback, sending the coin down below $105,000 before finding support at the 200 daily SMA (purple) and recovering above $115,000 but then fell toward $100K again. However this week BTC has turned higher again, approaching $110K.
BTC/USD – Weekly chart
Ethereum Falls Below $4,000
Ethereum (ETH) has been similarly strong, surging toward $4,800, its highest since 2021 and near its all-time peak of $4,860. Despite a dip last week, ETH found support at the 20-day SMA, with retail enthusiasm and renewed institutional participation driving fresh upside momentum. ON Friday we saw a dive below $3.500 however buying resumed on Sunday and ETH/USD climbed above $4,500 but returned back down below $4,000 again this week.
ETH/USD – Weekly Chart
Skerdian Meta
Lead Analyst
Skerdian Meta Lead Analyst.
Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank’s local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
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