Breakout or Breakdown? This Week Will Define the U.S. Market’s Direction

Juhi Mirza
Financial market visualization showing a split screen with a red downward arrow representing market crash on the left side and green upward arrows indicating recovery or growth opportunities on the right side
Source: Watcher Guru

The US markets have been undergoing rapid changes, trying their best to adapt to the recent wild fluctuations in the domain. The US government shutdown, alongside the USD devaluation, has compelled the markets to witness this recent development. In addition to this, a series of new hard-hitting events have been lined up for the U.S markets to brace against, with lineups that may break or make the markets this week.

Also Read: October Stock Market Crash: Could Markets Face a Sharp Sell-Off?

U.S Markets: What’s Happening This Week

US Dollar Bills Notes
Source: Pixabay

Per the latest post by the Kobeissi Letter, this week is going to be dynamic for the US markets. This dynamism is spurred by a series of breakout events ready to make or break the market as the week progresses. For instance, the US government shutdown is nearing its day 30, compelling the markets to make note of this development. At the same time, markets are also speculating whether another Fed rate cut decision is underway now as the Federal Reserve gears up for a Wednesday meeting.

“This week is going to be action-packed: as the government shutdown nears day 30, the Fed will release their interest rate decision on Wednesday. We will then hear from Fed Chair Powell in a highly anticipated statement amid the data blackout.”

In addition to this, the majority of the magnificent seven stocks are all set to announce their Q3 earnings reports, an event that may shape the future of the markets globally.

“On top of this, Microsoft, Google, Meta, Apple, and Amazon will all be reporting earnings. That’s earnings for $15.2 TRILLION in market cap worth of big tech stocks.”

Apart from the usual market developments, US President Donald Trump is all set to meet with China’s President Xi Jinping. This meeting is crucial amid the ongoing US-China tariff war. A positive development may bring ease to the global market ecosystem, while a fallout may trigger U.S. market mayhem.

“All while President Trump meets with China’s President Xi on Thursday, 48 hours before his 100% tariff is set to go “live. Buckle up for a wild week.”

What About Crypto?

Crypto markets are also bracing for impact, with expectations of Bitcoin surpassing the $118K mark gaining momentum once again. However, excess market volatility may trigger investors to adopt a cautious stance. Markets are facing liquidations in both the stock and the BTC sectors. While gold and silver have emerged as the true breakout assets of 2025, Bitcoin is also expected to gain further momentum, ultimately hitting $118K and beyond in the process.

“JUST IN: Tom Lee says Bitcoin’s best days this year are in Q4, and we could still hit $200K by EOY. FED quantitative easing. Govt shutdown ending. China/USA tensions ending. Stock market seasonality. Gold rebalancing. You are not bullish enough.”

Also Read: US Markets: What’s Next for US Dollar, Gold, Silver, and Platinum?