On Tuesday, the S&P 500 Index closed down 0.84%, the Dow Jones Industrials Index fell 0.34%, and the Nasdaq 100 Index declined by 1.55%, as market sentiment shifted following a partial U.S. government shutdown entering its fourth day. Key stocks, such as Thomson Reuters and EPAM Systems, dropped sharply by more than 15% and 13%, respectively, after an AI automation tool for lawyers was announced by Anthropic, negatively affecting data service and software sectors.
Precious metals saw a rebound; gold prices rose over 6% while silver increased by more than 8%. In broader economic context, Richmond Fed President Tom Barkin highlighted an improving U.S. economic outlook but noted ongoing inflation concerns. Market participants are closely watching upcoming economic indicators, including the January ADP employment change, which is expected to show an increase of 45,000 jobs.
In the tech sector, Palantir Technologies reported strong Q4 earnings, closing up over 6% after forecasting future revenue well above market expectations. Conversely, PayPal Holdings saw a significant drop of over 20% amid disappointing guidance and executive changes. The week continues with 150 S&P 500 companies scheduled to report earnings.
