TL;DR
US stock futures went up despite the government shutdown entering its second week. Investors remain hopeful because of strong company earnings forecasts, progress in artificial intelligence, and upcoming speeches from Federal Reserve officials. Key government economic data is delayed, but markets stay steady. Gold prices are rising as investors look for safe options amid uncertainty and expect possible interest rate cuts.
US stock futures rise despite shutdown
US stock futures went up on Monday, October 6, even as the government shutdown entered its second week. Dow Jones futures rose by 0.22%. S&P 500 futures increased by 0.30%, and Nasdaq 100 futures went up by 0.50%. This came after a strong week for the stock market. The shutdown has closed many government offices. It has also delayed key economic reports, including the September jobs data. Steve Sosnick, chief strategist at Interactive Brokers, said the missing data removed one reason for the market to slow down.
Investors wait for Fed talks and company earnings
Due to the shutdown, the US government has not released new economic data. So, investors are now focusing on the US central bank. Federal Reserve Governor Stephen Miran will speak on Wednesday. Chair Jerome Powell will speak on Thursday. Their speeches may give hints about future interest rate changes.
The earnings season will also begin this week. Big companies like PepsiCo, Delta Air Lines, and Levi Strauss will report their results. David Kostin from Goldman Sachs said companies in the S&P 500 are likely to post good results. He expects profits to grow by 7.2% this quarter. This is due to steady economic growth and rising interest in artificial intelligence.
Technology stocks and AI push markets higher
Tech stocks led gains in futures. Tesla shares went up over 2% before the market opened, ahead of a new product event on Tuesday. Micron Technology rose 3.4% after a Morgan Stanley upgrade. UiPath shares jumped 10% after announcing new AI partnerships with Nvidia, Alphabet, Snowflake, and OpenAI. Investors are hopeful that AI will continue to help grow the economy and markets.
Gold prices rise amid economic worries
Gold prices rose by 1.32% on Monday. The price is now close to $4,000 per ounce. Investors are buying gold as a safe option. They are worried about the government shutdown and the state of the economy. Many also expect the Federal Reserve to cut interest rates this month. With no new government data, traders are depending on private reports.
Global markets move after political changes
Stock markets in other countries showed mixed results on Monday. Japan’s Nikkei 225 went up by 4.75% and hit a new high. This happened after Sanae Takaichi became the new prime minister. In France, the CAC 40 index dropped by 1.3%. Prime Minister Sébastien Lecornu resigned without warning. His exit worried investors and pushed French bond yields higher.
FAQs- How has the government shutdown affected economic data?The shutdown delayed key government reports, including the important September jobs data.
- Why are investors still optimistic despite the shutdown?Investors are confident because of strong earnings forecasts, AI progress, and upcoming Federal Reserve talks.
- How did global markets respond to recent political events?Japan’s market rose on new leadership, while France’s market dropped after the prime minister resigned.
