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The S&P 500 Index is up 0.10%, the Dow Jones is up 0.13%, and the Nasdaq 100 is up 0.15%, with both the S&P 500 and Nasdaq 100 reaching new all-time highs on October 2, 2023. The positive momentum is attributed to strength in chip makers and AI-infrastructure stocks. This market rise occurs amid a U.S. government shutdown for the second day.
Bloomberg Economics estimates that 640,000 federal workers will be furloughed during the shutdown, potentially driving the unemployment rate up to 4.7%. Additionally, S&P companies are projected to see earnings growth of 6.9% in Q3, with more than 22% forecasting better-than-expected results.
Global markets are also experiencing gains, with the Euro Stoxx 50 up 1.45% and Japan’s Nikkei 225 closing up 0.87%. Interest rates are stable, and the markets are pricing in a 100% chance of a 25 basis point rate cut at the next Federal Open Market Committee meeting scheduled for October 28-29, 2023.
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