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The S&P 500 Index closed up 1.56% on October 9, 2023, following a rebound from last Friday’s decline. The Dow Jones Industrials Index increased by 1.29%, and the Nasdaq 100 Index rose by 2.18%, driven by a softening of the Trump administration’s rhetoric towards China and a surge in technology stocks, particularly in the semiconductor sector. Broadcom experienced a notable gain of over 9% after securing a multi-year partnership with OpenAI for custom chips and networking.
Gold prices soared more than 3% to an all-time high amidst central bank buying and rising safe-haven demand, coinciding with concerns about the ongoing U.S. government shutdown. The shutdown is expected to lead to the furlough of approximately 640,000 federal workers, with analysts projecting an increase in the unemployment rate to 4.7%. On the trade front, Chinese exports rose 8.3% year-over-year in September, surpassing expectations and providing a positive signal for global economic growth.
This week, the market anticipates further updates on trade negotiations and the ongoing government shutdown, with key earnings reports set to be released from major banks including JPMorgan Chase and Goldman Sachs. Analysts predict Q3 profit growth of only 7.2%, the lowest increase in two years, while the markets are currently pricing in a 98% chance of a 25 basis point rate cut at the Federal Reserve’s upcoming meeting later this month.
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