Overview
Today's U.S. stock market presented a mixed outcome as the looming threat of a government shutdown weighed heavily, with the S&P 500 index closing up by 0.060% and the Dow Jones reaching a record high, climbing by 0.7%. However, some major tech stocks saw declines, which capped broader gains.
The market experienced volatility as concerns over an imminent government shutdown lingered. Although the Dow Jones hit a record high, caution surrounding tech stocks, particularly in the context of AI investments, limited further advancement.
| Nasdaq Composite | S&P 500 |
| Dow Jones Industrial Average | 1 South Korean won equals |
Major News
- Valuation concerns have emerged around tech stocks following an AI boom in April, with Michael Burry, of 'The Big Short' fame, revealing short positions against companies like Palantir and NVIDIA, heightening fears within the sector.
- AMD announced a long-term goal of expanding its data center revenue, which boosted its share price, though other tech stocks like Oracle, Palantir, and NVIDIA saw declines.
- Investor focus is sharply on NVIDIA’s upcoming earnings report, viewed as a critical event for gauging AI investment sentiment, especially after SoftBank divested part of its NVIDIA holdings to fund AI ventures.
- Treasury yields fell amid expectations that the Federal Reserve might cut rates next month to support the job market.
- The White House spokesperson warned that the shutdown could delay key economic reports, including employment and consumer price index data.
Economic Indicators for Tomorrow
| Time | Event |
|---|---|
| 02:00 | U.S. API Crude Oil Stock Report |
| 03:00 | U.S. 30-Year Treasury Auction |
| 09:15 | Speech by Federal Reserve's Vice Chair Ballard |
| 09:20 | Speech by Federal Reserve's Governor Hemmack |
General Opinion
AJ Bell’s Russ Mould suggested that while market corrections are necessary and healthy, uncertainty looms large ahead of NVIDIA’s earnings report. Although the shutdown has increased market volatility, its actual impact has been limited; the S&P 500 has risen since the shutdown commenced. Joseph Trevis from Interactive Brokers noted the importance of the upcoming week, as the awaited data, if inconsistent with recent trends, could trigger significant market movements.
