October 8, 2025

Markets:

U.S. stock futures are moving higher Wednesday after the S&P 500 snapped its seven-day win streak. The pullback was largely driven by weakness in Oracle, which reignited questions about the sustainability of the AI trade. Meanwhile, the government shutdown has now entered its second week.

Oracle shares fell 2.5% after The Information reported that margins in its cloud business are running below analyst expectations and that the company is losing money on certain Nvidia chip rental deals.

The shutdown, now in its seventh day, has had limited impact on equities so far, but the longer it persists, the greater the potential hit to sentiment.

Investors are also watching for the latest Federal Reserve minutes due later today, which could shed light on internal divisions following September’s contentious policy meeting.

Portfolio:

We head into today’s session holding setups in RR, CONL, and TSLL.

Yesterday’s price action was actually quite healthy—SPY gapped up and faded through the open, forming a 65-minute trendline support around 668. Ideally, we’d like to see a move back above 670 heading into Powell’s remarks Thursday.

Could shape up as an inside day or a broader consolidation within the current range. Most gap-ups have been faded at the open, so some continued back-and-forth would be normal and even constructive here. As long as we avoid any waterfall-type selloffs, this base-building strengthens the next leg higher. We do love that certain new themes now are building.  This will only give us new opportunity in Q4.

As noted Monday—patience is key this week. Be ready today.