After a brief recovery attempt midweek, market breadth deteriorated again on Friday, October 10. Declining stocks overwhelmed advancers, and short-term momentum gauges worsened. The underlying trend has clearly shifted back to a defensive posture.
After Wednesday’s strong rebound, Thursday’s session saw a broad-based retreat across U.S. equities. Most of the short-term breadth indicators turned red again, signaling that the recent recovery attempt has faltered.
U.S. stocks edged lower on Thursday, pausing after a record-setting run. The S&P 500 slipped 0.4% by midday in New York, retreating from an all-time high of 5,674 hit at the open.
After a sharp contraction on October 7, market breadth showed a notable rebound on October 8, with advancing stocks regaining control and key percentage levels rising again. However, underlying indicators suggest the market has yet to firmly re-establish positive momentum.
The brief pause in the market rally didn't last long. Wall Street resumed its climb toward fresh records on Wednesday, powered by another relentless surge in technology stocks — while in commodities, gold continues to defy the laws of gravity.
After a relatively stable start to October, Tuesday's breadth data shows a decisive shift to the downside. Decliners overwhelmed advancers, with significant weakness across multiple breadth indicators. This marks a notable change in tone and resets short-term breadth momentum.
Risk sentiment is taking a breather after days of a relentless rally, with all major Wall Street indexes trading in negative territory and sharper declines hitting the most speculative assets, such as cryptocurrencies.
After last week’s broad advance, Monday’s session showed a mild fade in day-to-day participation while the bigger-picture metrics (new highs vs. lows and % above key MAs) stayed solidly constructive. It looks like digestion rather than deterioration.
Economist Jeremy Siegel stated that the market can handle slower growth if disinflation persists and AI-driven productivity becomes evident in 2026 and beyond.
Tech and AI-related stocks continued to propel Wall Street to new record highs Monday, with Advanced Micro Devices Inc. (NASDAQ:AMD) surging nearly 30% after unveiling a landmark investment in OpenAI.
Despite recent volatility, breadth indicators improved slightly on Friday, October 3, continuing a slow recovery from last week’s dip. While short-term metrics show resilience, longer-term momentum remains tentative. The breadth trend shifts up a notch but still calls for cautious interpretation.
Another historic session is unfolding on Wall Street, where every major index surged to new records by midday trading on Friday, even as Washington's shutdown dragged into its third day.
On Thursday, October 2nd, U.S. equity market breadth showed modest improvement, continuing a slow recovery from last week’s weakness. However, the advance remains hesitant, and key indicators are not confirming a broad-based bullish shift just yet. The overall trend stays neutral with a slight positive bias, but conviction remains low.
Fund manager Louis Navellier stated that market momentum appears unstoppable, with the bias toward equities versus debt at its highest level ever, and corporate share buybacks also on the rise.
As October 2025 unfolds, global financial markets continue to grapple with a persistent state of volatility, driven by a confluence of economic shifts, evolving monetary policies, and geopolitical uncertainties. In this dynamic environment, investors are increasingly scrutinizing their strategies, with a particular focus on investment style rotation—the tactical shifting
