The Markets – October 5, 2026
IN THE MARKETS
Stocks mixed the week ending October 2nd, 2026, as the Nasdaq Composite rose 0.5%, while the S&P 500 fell 0.3%, the Dow Jones Industrial Average declined 1.3%, and the Russell 2000 slipped 0.2%; the S&P MidCap 400 advanced. Technology and AI-related shares supported the Nasdaq, particularly in Friday’s rebound, while elevated Treasury yields and energy-price concerns weighed on broader market sentiment earlier in the week. The September employment report prompted investors to reduce expectations for a near-term Federal Reserve rate increase, although longer-term yields remained volatile.
U.S. MARKETS
LONG TERM INDICATORS
The Sherman Portfolios DELTA-V Indicator measuring the Bull/Bear cycle finished the week in a Bull status at 62.51, Down 0.09 in value from the prior week. It has signaled Bull since June 27, 2025.
The Sherman Portfolios DELTA-V Bond Indicator measuring the Bull/Bear cycle finished the week in BULL status at 48.29, Down 1.43 in value from the prior week. It has signaled Bull since December 15, 2023.
SHORT-TERM INDICATORS
GALACTIC SHIELD — Positive: This indicator is based on the combination of U.S. and International Equities trend statuses at the start of each quarter.
STARFLUX— Positive: Starflux ended the week at 7.32 (Up 0.22 in value last week). This short-term indicator measures U.S. Equities. It measures the trend-strength of the Russell 3000 index.
STARPATH — Positive: Determines market strength by ranking market neutrality against the moving average distance of 16 correlated market segments.
THE VOLATILIY INDEX for 2026 (VIX)
VIX closed at 15.31 for the week ending October 2, 2026, a 3.0% increase.
U.S. MARKET NEWS
Economic update:
U.S. nonfarm payroll employment increased by 29,000 in September, while the unemployment rate edged up to 4.2%. Average hourly earnings rose 0.1% for the month and 3.0% over the prior year. Separately, initial jobless claims fell 1,000 to 197,000 for the week ended September 26, and the ISM Manufacturing PMI eased slightly to 54.5 in September from 54.6 in August, remaining in expansion territory.
INTERNATIONAL MARKET NEWS
Europe
European equities declined for the week despite a Friday rebound: the STOXX Europe 600 fell 1.15%, the DAX declined 0.70%, the CAC 40 lost 2.24%, and the FTSE 100 declined 2.18%. Higher energy costs and renewed pressure in European bond markets contributed to a cautious tone. Euro area flash inflation accelerated to 3.8% year over year in September from 3.2% in August, with energy inflation rising to 18.8%, leaving investors focused on the implications for the policy outlook.
Japan
Japanese equities were mixed, with the Nikkei 225 rising about 2.93% for the week. Semiconductor and AI-related shares helped lift the price-weighted Nikkei, though Friday profit-taking and attention to higher oil prices, bond yields, and the yen limited gains. The Bank of Japan’s September Tankan survey showed large manufacturers’ business-conditions index rising to 24 from 22, supporting the view that business sentiment remained resilient following the BoJ’s September rate increase.
China
China’s mainland equity markets were closed for the National Day and Golden Week holiday beginning October 1, limiting end-of-week trading; the Shanghai Composite last traded on September 30, when it was down 1.19% since September 24th. Economic data were somewhat firmer: China’s official manufacturing PMI rose to 50.1 in September from 49.8 in August, while the nonmanufacturing reading increased to 50.2, indicating modest expansion in both measures.
HIGHLIGHTED STORY
