Wall Street saw declines on Thursday as the conclusion of the U.S. government shutdown failed to sustain earlier market optimism. The Nasdaq Composite dropped by 2%, reflecting growing unease among investors over delayed economic indicators and ongoing corporate earnings reports. With federal operations resuming, attention has shifted back to key data such as employment and inflation figures, which were paused during the shutdown and remain unreleased.
The absence of timely labor and price data has created uncertainty for both market participants and policymakers. Without these metrics, the Federal Reserve faces challenges in accurately assessing the economy’s trajectory, contributing to sustained volatility across major indices including the S&P 500, Dow Jones Industrial Average, and Nasdaq.
Corporate results have also played a significant role in recent market swings. Shares of Disney fell sharply following disappointing revenue performance, while Cisco Systems gained after exceeding earnings expectations and raising its future guidance. Despite individual stock movements, overall earnings season has shown resilience, with many companies outperforming forecasts—providing some support to equities amid broader turbulence.
Although the end of the shutdown brings a degree of stability, the lag in economic reporting continues to weigh on investor sentiment. Until critical data resumes, markets are likely to remain sensitive to earnings surprises and macroeconomic speculation.
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Nasdaq dips 2% as post-shutdown optimism fades, economic anxiety rises (DJI:)
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Wall Street’s major indexes were lower on Thursday, as the U.S. government shutdown came to an end, and investors turned focus to company earnings, as well as jobs and inflation data that should resume.
The benchmark S&P 500 (SP500
Quick Insights
The shutdown’s end provides some relief, but ongoing uncertainty about delayed economic reports is causing continued volatility in indexes like the S&P 500, Nasdaq, and Dow.
Unreleased jobs and inflation data create uncertainty, making it hard for investors and the Federal Reserve to gauge economic conditions and likely causing market volatility until data resumes.
Earnings results are causing notable volatility: Disney shares fell sharply on weak revenue, while Cisco rose after beating estimates and raising its outlook; overall earnings have been stronger than expected, helping lift certain stocks despite market chop.
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