Market Recap • Week 41 2025

Highlights from the week of October 6 - 12, 2025

Stocks and crypto crash while gold and silver reach new highs on renewed China-US trade tensions.

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Equities

America

• 🇺🇸 S&P 500 pulled back from record highs with a 2.43% drop this week. It was the largest weekly decline since May, highlighting how orderly (perhaps even complacent) the uptrend has been since the spring. What made this week’s pullback feel more dramatic was the fact that it all happened on Friday after Trump threatened new, massive tariffs on China. The S&P 500 plummeted 2.71% for its worst day since April 10. Despite all the drama, the index is still up 11.41% year-to-date.
• 🇺🇸 Nasdaq Composite nudged a new all-time high early in Friday’s session before getting hammered by Trump’s China rhetoric, losing 3.56% on the day and 2.53% for the week. And while the drop seems dramatic, the index was due for a break after its stellar run-up. The Nasdaq is up 15% in 2025 and 50% from the April lows.
• 🇺🇸 Dow Jones Industrial didn’t escape the carnage and took a 2.73% hit this week. The Dow is now up just 6.9% for the year.
• 🇺🇸 Russell 2000 only fared slightly better than the tech-heavy Nasdaq, falling 3.01% on Friday and 3.29% for the week.
• 🇨🇦 TSX also fell on the Trump vs China news on Friday, ending the week with a 2.04% loss after nudging a new all-time high on Monday.
• 🇲🇽 IPC only fell modestly on Friday but still closed the week 2.28% lower. The pullback comes after multiple new record highs in the past month.
• 🇧🇷 Bovespa also retreated from recent all-time highs with a 2.44% fall this week.
• 🇦🇷 Merval was closed on Friday after a 5.8% surge the day before, thus ending the week as one of the few bright spots with a 6.64% gain. The index is still down more than 24% year-to-date though.

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Europe

• 🇪🇺 STOXX 600 hit a new all-time high on Wednesday but sold off into the close on Friday after Trump’s China comments. It ended the day with a 1.25% loss and closed 1.1% lower on the week.
• 🇬🇧 FTSE 100 also took a hit on Friday albeit a more modest one, ending the week with a 0.67% decline.
• 🇩🇪 DAX saw strong gains early in the week and closed with a meager 0.56% decline despite a 1.5% drop on Friday.
• 🇪🇸 IBEX 35 lost just 0.71% this week after hitting a new all-time high on Wednesday.
• 🇫🇷 CAC 40 fell 2.02% this week amid new political turmoil and Trump’s new tariff threat. To be fair, investors barely seemed to care about the former which has become a common occurrence in France over the past couple of years.
• 🇮🇹 IT40 plummeted 2.71% from near-record-highs but is still up more than 22% for the year.
• 🇩🇰 C25 actually managed to eke out a 0.41% gain this week. It even closed in the green on Friday although that was in part thanks to its closing half an hour earlier than most European markets.

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Asia

• 🇯🇵 Nikkei 225 soared 5.07% for its best week in over a year after Japan’s ruling Liberal Democratic Party elected Sanae Takaichi as its new leader.
• 🇨🇳 Hang Seng dropped 3.13% this week before Trump had even announced his new 100% tariff on China imports Friday. Monday could be a bloody one for Asian markets, unless the rhetoric gets more constructive over the weekend.
• 🇮🇳 Nifty 50 gained 1.57% this week and continues to look for direction.
• 🇰🇷 KOSPI jumped 1.73% to yet another all-time high. The leading Korean index is now up more than 50% this year alone.
• 🇹🇼 TSEC rallied 2.02% to a new all-time high and extended its post-Liberation Day gain to 57.6%.

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Currencies & Commodities

• 💰 The DXY rose 1.17% to its highest weekly close since early June. The dollar has taken a big hit this year but could appear to be bottoming out at these levels.
• 🇪🇺 USD.EUR strengthened by 1.01% for the week despite taking a hit on Friday.
• 🇩🇰 USD.DKK gained 1.03% to 6.423 DKK.
• 🇬🇧 USD.GBP rose 0.91% to 0.749 GBP.
• 🇯🇵 USD.JPY rallied 2.49% for the week as the Japanese yen took a hit on the back of Sanae Takaichi’s win.
• 🇨🇳 USD.CNH eked out a 0.13% gain for the week.
• 🥇 Gold continued its insane rally with a 3.4% gain this week, closing above $4,000 per ounce for the first time in history. Unsurprisingly, it was also one of the few assets in the green during Friday’s panic.
• 🥈 Silver surged 4.47% this week and hit an even bigger milestone than gold, topping $50 per ounce and reaching a new all-time high for the first time since the peak in 2011. The price of silver has soared 73.5% year-to-date and 34% in the last two months alone.
• 🥉 Copper got hit by China’s rare earth metals restriction and Trump’s tariff threat, falling 5.71% on Friday alone and 4.54% for the week.
• 🏆 Bitcoin reached a new all-time high above $126k on Monday before taking a bath on Friday. The price fell from $121k to $113k during US market hours, but Trump’s 100% tariff announcement only came after the stock market closed. As one of the new asset classes still trading, crypto at large got sold off with Bitcoin dropping below $105k on some exchanges before rebounding and stabilizing around $111k with a 10% drop for the week as of Saturday morning (CET).
• The altcoin market unsurprisingly got absolutely demolished with many top 50 coins plummeting +70% during Friday’s flash crash. Even Ripple (XRP), the 5th largest cryptocurrency by market cap, was down more than 50% at one point during Friday. The crypto market overall had its largest single-day liquidation event in history, roughly 16 times larger than the covid crash.

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Bond yields

• 🇺🇸 The US 2-year yield fell 1.26% this week after a big drop on Friday.
• 🇺🇸 The US 10-year yield dropped 1.5% for the week and closed at 4.059%, the lowest weekly close since early April.
• 🇺🇸 The US 30-year yield declined 1.49% to 4.641%, also a multi-month low.
• 🇪🇺 The Euro 2-year yield took a big hit on Friday and ended the week 3.98% lower at 1.932%.
• 🇪🇺 The Euro 10-year yield fell 2.55% for the week to its lowest since early July.
• 🇨🇳 The China 10-year yield declined 0.91% for the week but is likely to see an outsized move on Monday after Friday’s tariff threat from Trump.
• 🇨🇳 The China 30-year yield actually rose 1.24% for the week to a new 11-month high of 2.29%.

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Other

• The VIX vaulted almost 32% on Friday alone and rose more than 30% for the week. It closed at 21.66, its highest weekly close since the Liberation Day volatility settled down in May.