US Markets Defy Shutdown Uncertainty, Nasdaq 100 Gains as AI Trend Boosts Sentiment
The US economy is facing uncertainty due to the ongoing government shutdown, which has halted the release of crucial economic data. Despite this, markets showed resilience with the Nasdaq Composite gaining at the start of trading on Thursday. Meanwhile, the probability of a further interest rate cut by the US central bank has surged to 99 percent.
The shutdown has led to the postponement of key economic indicators. The September jobs report may not be released on Friday, and the weekly job market data and industrial orders were not published on Thursday. This lack of data has put a brake on the US indices, with investors eagerly awaiting the next batch of economic indicators.
The Nasdaq exchange initially continued its record rally on Thursday, driven by the trend theme 'Artificial Intelligence' (AI). This positive sentiment was further boosted by the news of OpenAI's valuation reaching around half a trillion US dollars through a new placement of employee shares. This is a significant increase from April, when the company was valued at around 200 billion dollars less.
Tesla also made headlines on Monday with a capital increase boost of around 200 billion US dollars through the issuance of employee shares. Investors are hopeful for further interest rate cuts, given the weak data released by the private sector service provider ADP on the previous day.
The US central bank is set to announce its next monetary policy decisions at the end of October. The markets will be closely watching these decisions, given the high probability of a further interest rate cut. Despite the government shutdown causing a pause in economic data releases, the markets have shown resilience, with the Nasdaq Composite gaining at the start of trading on Thursday. The trend theme of AI and significant valuations of tech companies like OpenAI and Tesla have also provided a boost to investor confidence.
Read also:
- Kazakhstan's National Bank Boosts Currency Sales to $1.4 Trillion in Q4
- Federal petition from CEI seeking federal intervention against state climate disclosure laws, alleging these laws negatively impact interstate commerce and surpass constitutional boundaries.
- Duty on cotton imported into India remains unchanged, as U.S. tariffs escalate to their most severe levels yet
- Steak 'n Shake CEO's supposed poor leadership criticism sparks retaliation from Cracker Barrel, accusing him of self-interest
