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S&P 500 Rally Hits Pause After 7-Day Run

Markets Cool After Hot Streak October 8, 2025
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Changes in the Market are on display A trader watches the market cool after a strong rally, as the S&P 500 breaks a seven day winning streak

Good Morning,

Markets took a breather as the S&P 500’s seven day winning streak came to an end, with autos dragging and investors shifting toward safety trades. We break down what drove the pullback, why gold caught a bid, and what to watch as AI momentum and rising yields test the next leg of the rally. If you’re indexed to the S&P or leaning on tech leadership, this is the one to read.

Deloitte faces backlash and partial refunds over an error-filled AI-generated report, IREN shares slide after unveiling a $875M convertible notes offering, and McCormick tempers guidance amid tariff pressures while maintaining long-term appeal.

Yesterday, your insight was invaluable. I have another question for you today below.

Here are your Morning Bullets.

– Truly yours, Fred Frost


📉 Yesterday's Market Recap

Markets took a mixed beating yesterday, with tech stocks like Oracle sliding over 5% on cloud margin worries, while energy names stumbled as oil prices hit a May low. After-hours trading saw Redwire and IREN Ltd. drop on corporate announcements, signaling investor unease.


  • Oracle Slips on Cloud Concerns: Shares fell over 5% midday after reports of weaker-than-expected cloud margins and Nvidia deal losses. → CNBC

  • Redwire Slides After-Hours: Stock down 6.11% post-management and board shakeup announcement, now at $10.30. → Benzinga

  • Gold Breaks $4,000 Barrier: Safe-haven demand spikes amid shutdown fears and dollar weakness. → Reuters


📉 Daily Performance Snapshot

Index/Asset Closing Value Change
S&P 500 6,714.59 -0.38%
Nasdaq 22,788.36 -0.67%
Dow Jones 46,602.98 -0.2%
Gold $4054.40 +1.25%
Crude Oil $62.57 +1.36%
Bitcoin $122,924 -1.21%
10-yr Treasury Yield 4.127% -0.84%

🔭 What to Watch Today

Today’s docket could sway markets with key earnings previews and policy moves. Keep an eye on these developments for potential impacts on your portfolio.

  • JPMorgan Q3 Earnings Preview: Set for October 14, analysts expect insights on consumer health and net interest income growth. → Seeking Alpha
  • Intel’s Panther Lake Chip Reveal: Scheduled for October 10, details on the new laptop chip could shift tech sector dynamics. → Benzinga
  • Government Shutdown Fallout: Ongoing stalemate may obscure macro data, affecting Fed rate cut expectations. → Fortune

  • 💡 Opportunity Watch

    Amidst economic crosswinds, a few sectors and stocks are showing promise. Here’s where sharp-eyed investors might spot potential.

    • Dell Technologies (DELL): Upgraded growth forecasts for AI-driven sales, with price targets hiked by JPMorgan and Citi. → Stocktwits
    • AbbVie (ABBV): Strong pipeline and onshoring moves position it well outside TrumpRx margin pressures. → MarketBeat
    • Copper Demand from AI: Rising needs for data centers could boost miners despite decarbonization slowdowns. → Benzinga

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    🔥 The Big Bullet

    S&P 500 snaps 7-day win streak as rally pauses

    What happened: U.S. stocks took a breather yesterday as the S&P 500 ended its seven session climb, with broad indexes slipping into the red by the close. Selling was most visible in autos, where big names like Tesla, Ford, GM, and Stellantis fell and helped push the market lower. The dip came after a powerful run, so some profit taking was likely. Traders also rotated into haven areas during the day. That added pressure to cyclical stocks. The tone stayed cautious into the close. By day’s end, the rally paused, but did not fully reverse recent gains. It was a reset day rather than a panic day.


    Why it matters: When a long win streak breaks, it can cool risk appetite and slow momentum driven buying. Weakness in autos can signal concern about pricing, demand, or financing costs, which can spill over to suppliers and lenders. A pause also tests whether leadership is too narrow. Some investors worry that a few mega-cap AI names carry the market, and a top strategist warned about an “AI bubble” risk and a possible “Cisco moment”. On the day, money moved toward safety trades as bullion strength grabbed attention. Gold jumping above a milestone, showing a classic flight-to-quality pattern. For diversified investors, this mix means re-checking balance across cyclicals, defensives, and commodities. For traders, it means tighter risk controls after a long run. For long-term savers, it is a reminder to avoid chasing short-term surges.

    What’s next: Watch autos for clues on margins and demand after Tesla’s new lower-priced Model Y and Model 3. Price cuts can lift unit sales but squeeze profits, and peers may respond. Keep an eye on consumer strength into the holidays. Adobe expects shoppers to lean on AI tools at checkout, with AI-assisted purchases surging this season. If that happens, electronics, toys, and jewelry could see outsized promotions and volume. Also watch secondary stock offerings and capital raises, which can add supply and weigh on prices. Company specific earnings and guidance will shape sector winners and losers. If volatility rises, expect faster rotations between growth, value, and defensives.


    Reader Feedback

    Yesterday, with 86% majority, you all thought the main reason investors are rushing into gold right now is because of concerns about U.S. debt and fiscal stability.

    Debra from Texas told me: "I think people are buying gold because they’re worried the U.S. owes too much money. If the government keeps spending a lot, it makes people nervous. Gold feels safer when they don’t trust how the country is handling its money."

    As always if your opinion is not here, or you want to throw your two cents at me, reply to the E-mail, and let me know your exact thoughts.


    🧭 Policy & Market Ripples

    • Deloitte AI Report Fallout: Deloitte Australia refunds part of $290K for an AI-generated report with errors, raising concerns about generative AI reliability in professional services. → Fortune
    • IREN Ltd. Convertible Notes: Shares dropped 6.42% after announcing a $875M convertible notes offering, proceeds aimed at corporate purposes. → Benzinga
    • McCormick’s Long-Term Play: Despite Q3 beat, tariff and commodity pressures lower guidance, yet dividend history keeps MKC attractive below $65. → Seeking Alpha

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    Yesterday, 91% of you chose the right answer to the trivia question: It is backed by collateral, like a car or house


    Do not save what is left after spending; instead spend what is left after saving.
    – Warren Buffett
    Thanks for Reading.

    Stay Sharp, Stay Focused.
    Fredrick Frost
    Editor, MorningBullets

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