Weekly Market Update

Weekly Market Update

The past week saw significant fluctuations in the US stock market, with various events influencing investor sentiment. Key developments include:
• The longest-ever US government shutdown ended after 43 days, with President Trump signing a bill to reopen the government.
• The Federal Reserve's plans for a December rate cut are now uncertain due to hawkish commentary from officials.
• Retail investors continue to wield considerable power in the stock market, with some analysts arguing their influence has increased significantly.

Market Performance

The major US indexes experienced significant changes throughout the week:
• Dow Jones Industrial Average (^DJI): rose 0.7% on Wednesday but dropped 1.6% on Thursday
• S&P 500 (^GSPC): gained 0.1% on Wednesday and fell 1.6% on Thursday
• Nasdaq Composite (^IXIC): fell 0.2% on Wednesday but recovered to gain 0.1% on Friday

Notable Stocks

Several stocks experienced notable movements:
• Nvidia (NVDA): dropped over 3.5% on Thursday due to concerns about the Federal Reserve's rate cut plans
• Tesla (TSLA): fell more than 6% on Thursday and broke below $400 before rebounding
• Disney (DIS): stock fell over 7.5% after reporting disappointing earnings

Economic Data

The record six-week federal shutdown has delayed economic data releases, including:
• Inflation and jobs market data in October: uncertain due to the shutdown's impact on data collection
• Minneapolis Fed president Neel Kashkari flagged resilience in the US economy and continued concerns over inflation

Interest Rates

Traders now see less than 50% odds of a quarter-point rate cut next month, down from about 95% a month ago.