Tech Rebound Lifts Stocks as US Shutdown Nears End: Markets Wrap
(Bloomberg) — A rebound in technology shares drove stocks higher as a slate of upbeat earnings and optimism that the US government shutdown is nearing an end lifted sentiment.
Nasdaq 100 futures rose 0.6% as Nvidia Corp. led gains across the Magnificent Seven in premarket trading. Advanced Micro Devices Inc. jumped 5% after forecasting faster sales, while Nvidia partner Hon Hai Precision Industry Co. and Europe’s Infineon Technologies AG offered rosy forecasts.
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Contracts on the S&P 500 rose 0.3%, pointing to extended gains after investors shunned tech in favor of defensives on Tuesday. Treasuries rallied, catching up with the prior session’s advance in futures after the cash market was shut for Veterans Day. The dollar edged higher, while gold held steady.
Markets are anticipating an end to the 43-day US government shutdown, with House members set to return to Washington to vote on a spending deal. Traders are betting that the resumption of data releases could bolster the case for interest-rate cuts amid lingering uncertainty over policymakers’ next move.
“What I see is a wind of optimism and momentum in the US,” said Roland Kaloyan, head of European equity strategy at Societe Generale SA. “Markets are currently buying 2026 amid a positive cocktail of resilient growth, AI investments, Fed cuts and a weaker dollar.”
The resolution of the last four US shutdowns has typically lifted the S&P 500 and most of its sectors, based on median performance. Stocks gained after every shutdown since 1995, except early 2018, with consumer shares leading.
Given this week’s 1.8% advance on signs of a deal, markets may have already priced in some of the usual post-shutdown bounce.
“The message is that we are about to get more liquidity coming into financial markets at a time when the economy isn’t doing too badly,” said Justin Onuekwusi, chief investment officer at St. James’s Place in London.
UK gilts and the pound fell after the government was plunged into fresh turmoil amid allegations that Wes Streeting, a senior member of Keir Starmer’s cabinet, was plotting to oust the prime minister. The feud has spilled into the open just weeks before a budget in which the government is expected to raise income tax.
“The pound remains unloved,” wrote Kathleen Brooks, research director at XTB. “Budget concerns, growth issues and now political woes are a toxic mix for FX investors.”
Corporate News:
SSE Plc jumped the most in five years after the utility said it will raise about £2 billion in new shares to help finance an upgrade of its grids and boost renewable energy. Hon Hai Precision Industry Co. reported a better-than-expected quarterly profit thanks to accelerated AI-related spending by major tech firms. Zhongji Innolight Co., a Chinese maker of optical communication modules and devices, has picked banks for a Hong Kong listing that could raise $3 billion or more, according to people familiar with the matter. Some of the main moves in markets:
Stocks
S&P 500 futures rose 0.3% as of 6:25 a.m. New York time Nasdaq 100 futures rose 0.5% Futures on the Dow Jones Industrial Average rose 0.2% The Stoxx Europe 600 rose 0.6% The MSCI World Index rose 0.1% Currencies
The Bloomberg Dollar Spot Index rose 0.1% The euro fell 0.1% to $1.1570 The British pound fell 0.2% to $1.3126 The Japanese yen fell 0.5% to 154.86 per dollar Cryptocurrencies
Bitcoin rose 2.3% to $105,001.01 Ether rose 3.9% to $3,550.75 Bonds
The yield on 10-year Treasuries declined three basis points to 4.08% Germany’s 10-year yield advanced one basis point to 2.67% Britain’s 10-year yield advanced three basis points to 4.42% Commodities
West Texas Intermediate crude fell 0.6% to $60.65 a barrel Spot gold was little changed This story was produced with the assistance of Bloomberg Automation.
–With assistance from Jan-Patrick Barnert, Subrat Patnaik and Sujata Rao.
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