Deal Fever and Policy Drama: Wall Street Ignites as October Begins

Daniel Ledenev
Oct 6
6 min read

👋 Welcome Back Investors! (Sept 29 to Oct 3, 2025)

The first days of October delivered no shortage of headlines. Markets balanced optimism and anxiety as Washington inched toward a government shutdown, while corporate shake-ups kept investors alert. Electronic Arts surprised with a landmark buyout, and Berkshire Hathaway expanded its industrial footprint with the acquisition of OxyChem. Goldman Sachs struck a bullish tone, upgrading global equities on growth optimism and policy support. Tech stocks continued their relentless climb, and Pfizer stole the spotlight after striking a high-profile TrumpRX deal. The mix of political tension and market confidence reminded investors that volatility still sits just beneath the surface.

🏛️ Government Shutdown Deepens as Budget Standoff Drags On

The U.S. government entered its third day of shutdown as Republicans and Democrats failed to reach an agreement on federal spending, leaving roughly 750,000 federal workers without pay. The standoff stems from a budget impasse over healthcare funding and proposed cuts to Medicaid, with Democrats pushing to extend tax credits for affordable insurance and Republicans refusing to compromise without deeper spending reductions. Essential services like border protection, air traffic control, and Social Security payments continue to operate, though many employees are working without pay. Non-essential agencies; including national parks, the CDC, and the Smithsonian, have scaled back operations, while contractors and federally funded programs face widespread disruption.

The White House has signaled little urgency to end the shutdown, with President Trump suggesting the pause could help identify more “non-essential” workers for permanent cuts. Negotiations between congressional leaders have stalled, and both parties are positioning to avoid blame. Economists estimate that each week of the shutdown could shave 0.1 to 0.2% off U.S. GDP, though lasting damage would depend on how long it drags on and whether job cuts become permanent.

🎮 EA Sells in Record $55 Billion Deal, Taking Gaming Giant Private

Electronic Arts (EA), one of the world’s largest gaming companies, has agreed to a $55 billion leveraged buyout, marking the largest private-equity gaming acquisition in history. The deal led by Saudi Arabia’s Public Investment Fund (PIF), Silver Lake, and Jared Kushner’s Affinity Partners, values EA at $210 per share, a 25% premium to its market price. Once completed, the transaction will take EA private, removing it from public trading.

EA, the publisher behind EA Sports FC, The Sims, and Battlefield, will retain CEO Andrew Wilson, who called the buyout a “powerful recognition” of the company’s legacy and creative potential. Around $36 billion of the purchase will come from equity, with the remainder financed through loans, leaving the new owners with roughly $20 billion in debt to service. Analysts warn that the debt load could pressure EA to prioritize cash flow over innovation, potentially limiting investment in new titles.

The acquisition further cements Saudi Arabia’s growing influence in global gaming, following its investments in Niantic, Scopely, and Nintendo. Through the PIF’s Savvy Games Group, the kingdom has already hosted major esports events and continues to expand its entertainment portfolio as part of its long-term diversification strategy. The move, however, has reignited scrutiny over Saudi Arabia’s record on human rights and the intersection of politics and global media investments.

📈 Berkshire Hathaway Acquires OxyChem in $9.7 Billion All-Cash Deal

Berkshire Hathaway announced a $9.7 billion all-cash acquisition of Occidental Petroleum’s chemical division, OxyChem, marking one of the year’s largest industrial transactions. OxyChem, a global producer of essential commodity chemicals used in pharmaceuticals, healthcare, water treatment, and construction, will become a wholly owned Berkshire subsidiary once the deal closes in the fourth quarter of 2025, pending regulatory approval. Occidental CEO Vicki Hollub said the sale will strengthen Occidental’s balance sheet and unlock new resources for its oil and gas operations. The company plans to allocate $6.5 billion of proceeds toward debt reduction, targeting a principal debt load below $15 billion. Berkshire Vice Chairman Greg Abel praised OxyChem’s operational quality and emphasized that its team will remain intact under Berkshire’s diversified portfolio of holdings.

The acquisition underscores Warren Buffett’s continued confidence in industrial and energy-linked businesses, particularly those with stable cash flow and long-term demand. For Occidental, the divestiture represents a strategic pivot back toward core energy assets and carbon-management ventures. The move also signals Berkshire’s sustained appetite for large-scale, value-driven deals even as broader M&A activity slows amid high financing costs.

🌎 Goldman Sachs Turns Bullish on Global Equities Amid Policy Tailwinds

Goldman Sachs upgraded its outlook on global equities to “overweight” from “neutral,” citing stronger economic momentum, resilient corporate earnings, and broad monetary and fiscal policy support. In a research note released Monday, analysts said they expect “good earnings growth, Fed easing without a recession, and global fiscal easing” to keep markets well supported through the coming months.

The bank also raised its 12-month forecast for the S&P 500 to 6,800, pointing to improving investor sentiment and a rebound in valuations since April’s sell-off triggered by the “Liberation Day” tariff announcement. The MSCI World Index has climbed roughly 35% from its spring lows, with U.S. equities continuing to lead global performance. Goldman noted that equities historically perform well during late-cycle expansions when recession risks are muted but policy remains accommodative, paralleling trends seen in the late 1990s and mid-1960s. However, the firm struck a cautious tone elsewhere, downgrading global credit to “underweight” on stretched valuations and cutting cash exposure, warning that continued Fed rate cuts could erode yields into next year.

💉Tech Stocks Roll On as Pfizer Soars After Landmark Trump Deal

Markets surged to record highs this week as investors brushed aside Washington’s government shutdown and a missing jobs report, focusing instead on corporate optimism and easing monetary policy expectations. The S&P 500, Nasdaq 100, Dow Jones Industrial Average, and Russell 2000 all closed at all-time highs on October 3, driven by strength in pharmaceuticals and AI-led tech stocks.

Pfizer (PFE) led the rally after striking a historic deal with the Trump administration to join TrumpRx.gov, a new federal drug discount platform. The agreement ties U.S. drug prices to the lowest rates paid by other developed nations while exempting Pfizer from new pharmaceutical tariffs for three years. In return, the company pledged a $70 billion investment in U.S. manufacturing, a move seen as a potential model for the broader healthcare industry. Shares of Merck, Amgen, Eli Lilly, and Thermo Fisher followed with double-digit gains. Meanwhile, the AI boom showed no signs of slowing. Nvidia hit a $4.6 trillion market capitalization, propelling the combined value of the “Magnificent Seven” tech giants to over $21 trillion. Investor risk appetite also spilled into speculative markets, with Bitcoin climbing above $121,000, near its August peak.

👀 Stocks to Watch: What This Week’s Moves Reveal

Markets opened October balancing optimism and tension, deal activity stayed hot, energy names shifted on realignment news, and investors continued to chase policy-driven themes. Here are the tickers that stood out this week:

Chevron (CVX | 1.1%) – Benefited from the Berkshire, Occidental deal buzz, with traders betting that major oil producers could pursue similar divestitures to refocus on core energy assets and low-carbon ventures.
Take-Two Interactive (TTWO | 0.8%) – Gained on speculation of increased private-equity interest across the gaming sector after EA’s record-breaking buyout, highlighting renewed appetite for long-term IP-driven franchises.
JPMorgan Chase (JPM | 2.1%) – Advanced as financials rallied behind Goldman’s bullish global-equities call, with stronger loan-growth forecasts and easing Fed policy expectations adding support.
UnitedHealth Group (UNH | 4.3%) – Edged higher amid healthcare sector volatility, as investors weighed shutdown-related funding uncertainty against expectations for resilient Medicare and Medicaid margins.
Freeport-McMoRan (FCX | 9.7%) – Rose alongside a rebound in industrial metals, fueled by infrastructure spending hopes and policy easing that echoed the same optimism driving Goldman’s market upgrade.

🛎️That’s a Wrap!

The first week of October opened with drama on multiple fronts. Washington’s budget gridlock pushed the U.S. government into its third day of shutdown, while markets largely shrugged off the noise thanks to upbeat corporate headlines. Electronic Arts shocked Wall Street with a record $55 billion buyout, Berkshire Hathaway expanded its empire by acquiring OxyChem for $9.7 billion, and Goldman Sachs turned bullish, upgrading global equities on growth optimism and policy support. With earnings season about to kick off and rate cut hopes still simmering, investors head into mid-October balancing opportunity and uncertainty in equal measure.

Until then, stay focused and stay curious. Catch you next week 👋