"U.S. equities ended the week on a mixed note, reflecting shifting investor sentiment as the country concluded the longest federal government shutdown in history. The S&P 500 and Dow Jones Industrial Average posted modest gains, while the Nasdaq Composite, MidCap 400, and Russell 2000 moved lower. Trading was uneven throughout the week as investors reassessed the high valuations of major technology and artificial intelligence-related companies - sectors that have contributed significantly to recent market highs."
"A volatile Friday session, with few major headlines, allowed some indices to recover earlier losses. The reopening of the federal government removed a major source of uncertainty, but concerns linger about how long it will take for economic activity and public services to normalize. Data releases remained a central focus, with the Bureau of Labor Statistics noting that delays in jobs and inflation reports could continue. A release date for the September jobs report was eventually confirmed for November 20."
"Interest-rate expectations also shifted. Several Federal Reserve officials delivered cautious, hawkish remarks suggesting that current monetary policy should remain restrictive until inflation trends convincingly toward the 2% target. As a result, the probability of a December rate cut fell sharply, pressuring small-cap stocks and contributing to weakness in broader market sentiment. Treasury yields moved slightly higher, while municipal bonds outperformed amid strong demand."
U.S. stocks finished the week mixed after the federal government reopened following the longest shutdown in history. The S&P 500 and Dow posted modest gains, while the Nasdaq Composite, MidCap 400, and Russell 2000 declined. Investors reassessed high valuations of major technology and artificial intelligence-related companies, creating uneven trading and a volatile Friday recovery. Data timing remained central, with the Bureau of Labor Statistics noting possible delays and confirming the September jobs report for November 20. Federal Reserve officials signaled a hawkish stance, reducing December rate-cut odds and pressuring small caps. Treasury yields rose modestly and municipal bonds outperformed. European markets advanced, led by STOXX Europe 600.
#us-equities #federal-government-shutdown #monetary-policy--fed #technology--ai-valuations #european-markets
Read at London Business News | Londonlovesbusiness.com
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