Fundamental Analysis

Stocks Fall as US Reopens Amid Cloudy Fed Outlook: Markets Wrap

Wall Street traders bracing for a wave of economic releases after the end of the US shutdown drove stocks lower and bond yields higher amid concern over whether the data will be enough to clear the path for a Federal Reserve rate cut.

With much of the optimism about the government reopening already priced in, the S&P 500 wiped out its November advance. A slide in big tech weighed heavily on trading. Short-dated Treasuries, which are more sensitive to imminent Fed moves, underperformed as money markets project about even odds of a central bank reduction in December.

President Donald Trump signed legislation to end the longest government shutdown in US history, marking the official conclusion to a 43-day impasse that will allow the government to begin to resume normal operations. However it could still take days, or even weeks, for the federal bureaucracy to fully restart and dig out of the backlog after being closed since Oct. 1.

The Bureau of Labor Statistics is expected to publish a calendar in the coming days with updated release dates for delayed economic data. The October jobs report will be released without a reading of the unemployment rate, Trump’s top economic adviser Kevin Hassett told Fox News.

“The gears of the government should be working again soon, and while that is a relief for markets and the economy, there is still plenty of uncertainty, particularly around the missed inflation and jobs data and how these fronts have been faring,” said Carol Schleif at BMO Private Wealth.

Schleif says she would not be surprised to see some market chop over the coming weeks as the government gears and economic data presses get turning again. While she still expects a rate cut in December, she notes the data blackout has made the Fed’s job difficult.

Corporate Highlights:

  • Cisco Systems Inc., the network-equipment giant, boosted its 2026 forecast, showing progress in its effort to capture more artificial intelligence spending.
  • Google is under investigation by European Union antitrust watchdogs over concerns it unfairly demotes some news results in a probe that risks adding to its €9.5 billion ($11 billion) EU fines tally and worsening fraught relations with the Trump administration.
  • Tencent Holdings Ltd. has struck a deal with Apple Inc. that will see the iPhone maker handle payments and take a 15% cut of purchases in WeChat mini games and apps, resolving a high-profile dispute that’s dogged the world’s largest smartphone arena.
    • Tencent posted a faster-than-anticipated 15% rise in revenue, sustaining the steady growth that’s helped the social media leader attract investors despite eschewing splashy investments in AI infrastructure.
  • Alibaba Group Holding Ltd. is preparing an overhaul of its main mobile AI app in coming months to help it more closely resemble OpenAI’s ChatGPT, a key step in a broader effort to catch rivals and eventually earn money off individual users.
  • Baidu Inc. released the latest iteration of its flagship AI models, trying to keep up in the highly competitive Chinese artificial intelligence arena.
  • Walt Disney Co. reported sales that fell short of Wall Street estimates and said a slate of big-budget films, including a new Avatar picture, will weigh on results for the first quarter of its new fiscal year.
  • Pfizer Inc. is looking to sell its remaining stake in Covid-19 vaccine partner BioNTech SE, a remnant from one of the pandemic’s most lucrative collaborations.
  • Uber Technologies Inc. is expanding the availability of its reserved rides option to include popular ski destinations, part of a larger effort to lure wealthy consumers toward more premium services.
  • Unionized Starbucks Corp. baristas are launching a wave of walkouts Thursday, a work stoppage they say could grow to become their biggest strike to date.
  • Brookfield Corp.’s earnings rose in the third quarter as the Canadian money manager forges ahead with plans to evolve into an investment-led insurer.
  • Burberry Group Plc’s sales rose as the UK fashion brand saw demand improve in the region that includes China, an indication its turnaround bid under Chief Executive Officer Joshua Schulman is starting to work.
  • Rolls-Royce Holdings Plc reiterated its full-year profit guidance as strong demand for jet engines bolsters the British manufacturer’s order book.
  • Deutsche Telekom AG said it would raise dividends for 2025 after third-quarter profit rose from a year earlier, bolstered by a record number of new users of home fiber lines in Germany.
  • Siemens AG expects adverse currency movements to weigh on its results as the engineering company cuts its stake in MRI maker Siemens Healthineers AG to focus on growth in software.
  • Red Bull GmbH risks hefty European Union antitrust fines after regulators hit the energy drinks giant with a full-scale probe into allegations it flouted the bloc’s competition rules.
  • Glencore Plc and Hillhouse Investment Management plan to invest in Chuangxin Industries Holdings Ltd.’s upcoming initial public offering in Hong Kong, people familiar with the matter said, signaling confidence in the Chinese aluminum smelter’s prospects as the metal’s price surges.

Some of the main moves in markets:

Stocks

  • The S&P 500 fell 0.7% as of 9:42 a.m. New York time
  • The Nasdaq 100 fell 1.1%
  • The Dow Jones Industrial Average fell 0.2%
  • The Stoxx Europe 600 fell 0.3%
  • The MSCI World Index fell 0.5%
  • Bloomberg Magnificent 7 Total Return Index fell 1.4%
  • The Russell 2000 Index fell 0.9%

Currencies

  • The Bloomberg Dollar Spot Index fell 0.2%
  • The euro rose 0.3% to $1.1626
  • The British pound rose 0.3% to $1.3171
  • The Japanese yen rose 0.2% to 154.49 per dollar

Cryptocurrencies

  • Bitcoin rose 0.3% to $102,156.03
  • Ether was little changed at $3,419.5

Bonds

  • The yield on 10-year Treasuries advanced three basis points to 4.10%
  • Germany’s 10-year yield advanced three basis points to 2.67%
  • Britain’s 10-year yield advanced three basis points to 4.42%
  • The yield on 2-year Treasuries advanced two basis points to 3.58%
  • The yield on 30-year Treasuries advanced one basis point to 4.68%

Commodities

  • West Texas Intermediate crude rose 0.8% to $58.98 a barrel
  • Spot gold rose 0.1% to $4,200.72 an ounce

Source

Arvinth Akash

Recent Posts

Stocks Rise As Traders Gear Up For Year-End Rally: Markets Wrap

US stocks futures held gains as Asian and European equities set the pace on Thursday,…

19 hours ago

Forex Market Analysis & Day Trading Opportunity | US Dollar Index | 4 December 2025

Hi Traders! US Dollar Index short term forecast and technical analysis is here. We do…

19 hours ago

Dow Jones Short Term Forecast Update And Follow Up

Hi Traders! Dow Jones short term forecast update and follow up is here. On October…

2 days ago

Forex Market Analysis & Day Trading Opportunity | EURNZD| 3 December 2025

Hi Traders! EURNZD short term forecast and technical analysis is here. We do our analysis…

2 days ago

Silver Short Term Forecast Update And Follow Up

Hi Traders! Silver short term forecast update and follow up is here. On October 15th,…

3 days ago

Forex Market Analysis & Day Trading Opportunity | NZDCAD| 2 December 2025

Hi Traders! NZDCAD short term forecast and technical analysis is here. We do our analysis…

3 days ago