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The S&P 500 Index closed up 0.40% on October 16, 2023, while the Dow Jones Industrial Average decreased by 0.04% and the Nasdaq 100 increased by 0.68%. Economic data released included a stronger-than-expected October Empire manufacturing survey, with the general business conditions index rising to 10.7 from 19.4, beating expectations of -1.8.
The U.S. government shutdown continues, with estimates from Bloomberg Economics indicating that 640,000 federal workers could be furloughed, potentially raising the unemployment rate to 4.7%. Concurrently, the Federal Reserve’s Beige Book reported stable employment levels but a slight decrease in consumer spending and rising costs, with expectations of a 98% chance of a 25 basis point rate cut during the upcoming FOMC meeting on October 28-29.
In the stock market, chipmakers like ASML Holding saw gains of over 2% following strong Q3 new orders, while Morgan Stanley and Bank of America each gained over 4% after reporting solid quarterly earnings. Gold reached a record high amid escalating trade tensions, as buying in precious metals surged.
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