"Bad news is good news for stocks: Equity markets have shrugged off the US government shutdown as they usually tend to do, whilst the drop in bond yields reflected some weakness in the labour market data yesterday. Wall Street eked gains with the S&P 500 closing above 6,700 for the first time. OpenAI is said to be worth $500bn after wrapping a $6.6bn share sale....a massive bubble, but supports the AI/chip narrative once more."
"Does the shutdown matter? Fitch Ratings said the US government shutdown likely won't impact its sovereign rating soon, while S&P Global Ratings says shutdowns have minor economic effects. Could it be different this time? You look at this happening at exactly the same as the administration gathers a bunch of generals and tells them to prepare to tackle the enemy "within", pledging more military support for law enforcement in US cities."
"Data was soft - ADP said US private payrolls fell by 32,000 in September, against expectations for a roughly 45k gain. This is important potentially ahead of the NFP report, which I assume will be released at some point...but apparently not on Friday. Treasury yields fell sharply on the ADP report, with the 10yr down about 5bps to 4.10%, further boosting risk appetite for stocks."
Equity markets shrugged off the US government shutdown as the S&P 500 closed above 6,700. OpenAI reached a $500bn valuation after a $6.6bn sale, reinforcing AI and chip narratives. Fitch expects little near-term impact on the US sovereign rating; S&P Global sees minor economic effects. ADP reported a 32,000 decline in US payrolls for September, pushing Treasury yields down to about 4.10%. The BLS halted some updates due to the shutdown, creating a risk of data blackouts and greater volatility. The FTSE 100 hit a record on pharmaceutical gains after Pfizer struck a US government deal.
Read at London Business News | Londonlovesbusiness.com
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