Wall Street's primary indices kicked off Thursday's trading session in negative territory, reflecting investor caution. The market's downward move comes immediately after President Donald Trump signed a bill to end the longest government shutdown in US history.
End of a Political Stalemate
The political deadlock, which had gripped Washington for a gruelling 43 days, was finally broken when the bill was signed late on Wednesday. This shutdown had far-reaching consequences, paralysing parts of the government and leaving hundreds of thousands of public sector workers without pay. A critical casualty of the impasse was the temporary halt of essential government economic data releases, creating a significant information vacuum for policymakers and businesses trying to assess the health of the world's largest economy.
Market Reaction and Key Movers
At the opening bell, the sell-off was clear. The Dow Jones Industrial Average fell 80.9 points, or 0.17%, to 48,173.92. The broader S&P 500 index dropped 24.4 points, or 0.36%, to 6,826.47. Technology stocks were hit harder, with the Nasdaq Composite declining by 143.8 points, or 0.61%, to 2,3262.645. In individual stock news, Walt Disney shares tumbled 7.9% after the entertainment giant reported quarterly earnings that fell short of market expectations.
All Eyes on the Fed and Economic Data
With the government now reopened, market participants are keenly awaiting the resumption of economic data releases. These reports are considered crucial for providing clarity on the true state of the US economy. The data will be instrumental in shaping market sentiment and determining whether the Federal Reserve is likely to continue its path of cutting interest rates at its upcoming December policy meeting. Investors are now on high alert, parsing every new data point for signals about future monetary policy.
