The Friday session at Wall Street ended with the increases of DJI and S&P 500, but due to the deterioration of moods towards technology companies, Nasdaq recorded the decreases. Friday is the third day of closing government administration (so -called shutdown) in the United States.
Dow Jones Industrial at the closure increased by 0.51 percent and amounted to 46,758.28 points S&P 500 gained 0.01 percent at the end of the day and amounted to 6,715.79 points Nasdaq Composite lowered by 0.28 percent Up to 22,780,506 points The index of companies with medium capitalization Russell 2000 is growing by 0.72 percent. up to 2,476,178 points The VIX index grows 0.12 percent up to 16.65 points
In a weekly terms, all main indexes recorded increases – S&P 500 and DOW PO by about 1.1 percent, and Nasdaq by 1.3 percent.
Friday is the third day of closing government administration (so -called shutdown) in the United States, and although this situation deepened the fears of adverse macroeconomic and political factors, the risk of inflation and slowdown on the labor market, investors expect it to be a short -term phenomenon, which has a potentially limited impact on the economy of the United States.
The American Senate rejected the budget provisional projects for both parties for the third time, extending the paralysis of the state's work. Fiasko means that Shutdown will probably last at least until Monday.
“Solid macroeconomic environment, supported by healthy consumers' activity, combined with the possibility of lowering interest rates by the FED, contributed to the creation of a market environment, in which the volatility of the valuations of shares was largely mastered,” said Anthony Saglimbene, the main market strategist at Ameriprise Financial.
According to Bof Michael Hartnett's strategist, one way to use market mania on artificial intelligence is balancing extreme valuations using cheap cyclical assets in combination with highly valued technology.
During the Friday session, the moods around technology companies such as Palantir Technologies, Tesla or Nvidia, whose quotations went down by 7.5 %, 1.4 percent, 0.7 percent
Bank of America maintained its optimistic forecasts regarding the shares of companies in the artificial intelligence industry, despite the growing fears related to the investment expenditure of these enterprises.
Due to the Shutdown, the Friday publication of the monthly report from the US labor market was postponed for September, the so -called PayRolls report, which is usually heavily awaited by investors. In addition, this translates into less data that the FED can include when making decisions on interest rates during the October meeting.
Blerina Urci, the main economist of the USA in T. Rowe Price, said that the potential delay in the publication of key economic data is a problem for the federal reserve dependent on data, which will force the central bank to rely on less comprehensive indicators, such as ADP.
Despite this, the markets are becoming more and more convinced that the FED will maintain its path of interest rates and almost fully value the rate reduction by 25 PB. in October. Investors value 114 PB. soothing monetary policy until the end of 2026.
The President of the Fed from Chicago Austan Goolsbee said he was distrustful of lowering interest rates too quickly, and the Fed feels pressure both in the face of stable prices and low unemployment.
“The observed increase in inflation in combination with worse employment data meant that the central bank found itself in a difficult situation in which the situation in both areas deteriorates at the same time,” he assessed.
US President Donald Trump announced on Thursday that he would decide which of the federal agencies can be liquidated during the break in financing state institutions.
The Secretary of the US Treasury Scott Bessent said in a Thursday interview for CNBC that the closing of government administration could harm the economic growth of the United States.
Applied Materials' quotations reduced by nearly 3 percent. After the manufacturer of equipment for integrated circuits, he invited a decrease in revenues of USD 600 million in the fiscal year 2026 due to wider limitations of semiconductor exports. The shares of the competitive company Lam Research lost nearly 1 percent.
Boeing shares fell by 0.5 percent. Boeing 777X is to fly into a commercial flight for the first time at the beginning of 2027, not next year, which is another blow to the American aircraft manufacturer.
USA Rare Earth shares increased by over 14 percent. After the president of Barbara Humpton said in CNBC that the company is in close contact with the White House.
Two -digit increases were recorded by quantum computers manufacturers – Rigetti Computing (+13 percent) and Quantum computing (+23 %). D-Wave Quantum gained almost 12 percent
In September, the service sector in the United States was slowed down to the lowest level from the beginning of the Covid pandemic.
The Supply Management Institute (ISM) stated that the ISM rate of activity in US services in September dropped to 50.0 points. with 52.0 points last month. Analysts expected an index of 51.7 points.
On the oil market, contracts for WTI in November increase by 0.55 percent. up to USD 60.81 per barrel, and Futures on Brentia grow by 0.62 percent. up to 64.51 USD/B. (PAP Biznes)
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