Government Shutdown Continues for the Seventh Day
The seven-day government shutdown in the United States continued to weigh on investors’ minds, causing Wall Street’s major indices to close lower on Tuesday.
Key Indices and Their Performance
- Dow Jones Industrial Average: Down 0.20% to finish at 46,602.98 points
- S&P 500: Decreased by 0.38% to close at 6,714.59
- Nasdaq Composite: Dropped 0.67% to end at 22,788.36
The ongoing federal government shutdown has left investors without crucial references, such as the non-agricultural payroll report.
Tech Stock Declines Add to Market Pressure
Apart from the government shutdown, declines in two major tech stocks added pressure to the indices:
- Tesla: Down 4.50% after launching a more affordable version of its Model Y
- Oracle: Decreased by 2.37% due to uncertainties surrounding its GPU business
Andrés Espinosa, a business development manager at Excent Capital, commented: “Oracle started October on the wrong foot due to a weak report on its chip rental operations with Nvidia. This information fuels debates about a potential AI bubble.”
Upcoming Events and Analyst Insights
The minutes from the Federal Reserve’s latest monetary policy meeting are expected to be published tomorrow. Earlier today, Stephen Miran, the governor of the central bank, stated that the calm in the bond market indicates support for an aggressive interest rate cut.
Sector Performance
Seven of the eleven leading sectors in the S&P 500 closed the day with gains, led by consumer staples. In declines, discretionary consumer companies were hit the hardest, affected by Tesla. In the Dow Jones index, Nike (-3.18%) led the losses.
Key Questions and Answers
- Q: What caused the declines on Wall Street? A: The ongoing government shutdown and declines in major tech stocks, such as Tesla and Oracle, contributed to the market’s downward trend.
- Q: How has the government shutdown impacted investors? A: The shutdown has left investors without crucial references, like the non-agricultural payroll report, causing uncertainty in the market.
- Q: What are analysts expecting regarding interest rates? A: Analysts, including Stephen Miran from the Federal Reserve, believe there is support for an aggressive interest rate cut due to the calm in the bond market.
