U.S. Markets Hit Records Despite Government Shutdown Delaying Jobs Report
The U.S. jobs report for September is delayed due to the ongoing partial government shutdown, which began early October. Despite this, the S&P 500 and Nasdaq indices hit new records on Thursday. Meanwhile, Democrats may blame the Trump administration for lost healthcare services during the shutdown.
Market optimism persists despite the shutdown, with the EuroStoxx 50 expected to rise by 0.3 percent. Economist Mohit Kumar from Jefferies warns of potential market impacts from a prolonged shutdown. The U.S. government could use funding cuts and layoffs as leverage in the shutdown negotiations. Shares of Nemetschek, a construction software provider, are set to benefit from a buy recommendation by private bank Berenberg. A negative market reaction could pressure President Trump to reconsider his position in the shutdown. The recent stock rally on both sides of the Atlantic is driven by hopes for further monetary policy easing in the U.S.
The delayed jobs report and ongoing government shutdown have not dampened market spirits, with indices reaching new highs. However, a prolonged shutdown could impact markets, and the U.S. government may use funding cuts and layoffs as leverage in negotiations. Meanwhile, a negative market reaction could influence President Trump's stance on the shutdown.
