Wall Street experienced a minor dip early Thursday following President Donald Trump’s signing of a U.S. government funding bill, which concluded the historic 43-day government shutdown. Futures for major indices, including the S&P 500, Dow Jones industrials, and Nasdaq, each fell by less than 0.1% prior to the market’s opening. The end of the shutdown comes after a prolonged six-week standoff that had adverse effects on federal workers, contributing to financial strain as many went without pay. The shutdown also resulted in disruptions in air travel and lengthy wait times at food banks for those in need.
Stephen Innes of SPI Asset Management highlighted the implications of the shutdown, noting that it not only halted government spending but also delayed a significant amount of federal economic data. He mentioned, “for markets, the only line that matters is simple: the lights are coming back on,” indicating that investors are optimistic about the return of crucial economic information.
During the shutdown, many investors relied heavily on corporate earnings reports since October 1, as the absence of government data left a gap in information essential for decision-making. While a majority of notable companies have already released their latest financial results, a few remain outstanding.
Walt Disney Co. saw its shares decline nearly 5% following the announcement of mixed fourth-quarter results. Despite a robust performance in its streaming service and theme parks, disappointing results from its television networks and some films contributed to the downturn. On the other hand, tech giant Cisco experienced a significant rise of 6.8% after surpassing Wall Street forecasts. Cisco attributed its successful first-quarter results to the increasing demand for AI infrastructure.
In European markets, there was a mixed response: Germany’s DAX fell by 0.5%, while France’s CAC 40 gained 0.4%. Conversely, London’s FTSE 100 saw a decline of 0.8%.
Asian markets exhibited a mostly positive trend. The Nikkei 225 in Japan increased by 0.4%, reaching 51,281.83, although tech heavyweight SoftBank Group faced a setback, plummeting 3.4% following a 3.5% loss the previous day due to the sale of its shares in Nvidia, a prominent computer chip maker.
Hong Kong’s Hang Seng index advanced 0.6% to 27,073.03, while the Shanghai Composite climbed 0.7% to 4,029.50 as mainland stocks reacted positively ahead of upcoming updates regarding lending in China.
Meanwhile, Australia’s S&P ASX 200 dropped 0.5% to 8,753.40, marking its third consecutive session of decline. This decrease was attributed to strong employment data that indicated a drop in unemployment to 4.3% in October from 4.5% in September, dampening expectations for imminent interest rate cuts. South Korea’s Kospi fluctuated but ultimately closed 0.5% higher at 4,170.63, while Taiwan’s Taiex saw a marginal decrease of nearly 0.2%, and India’s BSE Sensex managed a slight increase of 0.2%.
In the energy sector, U.S. benchmark crude oil prices increased by 40 cents, reaching $58.89 per barrel, while Brent crude, the international benchmark, rose by 41 cents to $63.12 per barrel, reflecting fluctuations in global oil markets.
