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The S&P 500 Index is up 0.16%, the Dow Jones Industrials Index is up 0.24%, and the Nasdaq 100 Index is up 0.25% as of today. December E-mini S&P futures are up 0.13%, while December E-mini Nasdaq futures are up 0.22%. The markets are reacting positively with the S&P 500 and Nasdaq 100 posting new all-time highs, driven by a surge in chip makers and AI infrastructure stocks, particularly Advanced Micro Devices, which is up over 6% today following a 23% increase on Monday.
The ongoing U.S. government shutdown, which has entered its second week, is causing delays in economic reports and is expected to lead to furloughs for an estimated 640,000 federal workers, potentially raising the unemployment rate to 4.7%. In international markets, the Euro Stoxx 50 is up 0.16%, while Japan’s Nikkei Stock 225 rose to a new record high. The markets are anticipating a 93% chance of a 25 basis point rate cut at the upcoming Federal Open Market Committee meeting on October 28-29.
Corporate earnings expectations remain optimistic, with over 22% of S&P 500 companies projecting Q3 earnings that could exceed analyst forecasts, despite a forecasted 7.2% rise in profits, the lowest increase in two years. Additionally, Goldman Sachs has raised its gold price forecast to $4,900 an ounce, contributing to rising gold prices amid current market uncertainties.
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