Wall Street renovated maximums in expectations for rates cuts, despite the closure of the US government

In this context, the Dow Jones index of industrialists rose 0.09% to 46,441.10 points; The S&P500 won 0.29% to 6,708.06 points and Nasdaq Composite showed 0.42% to 22,755.16 points.

The closing of the US government began

The closure of the US government began after a bill, backed by Republicans to finance the government, did not achieve the majority in the Senate.

Senate Democrats were almost unanimously opposed to the Republican Expenditure Billdemanding the inclusion of continuous subsidies for medical care.

The bill, approved earlier this month by the House of Representativeswas rejected by 55 votes in favor and 45 against. It required at least 60 votes in favor for approval.

Services such as air traffic control and disaster assistance are expected to be affectedwhile thousands of federal employees face possible temporary employment suspensions.

Wall Street usually climbs during government closures and the actions rose, on average, in the five previous government closures. However, this could be more problematic than usual, since investors are still concerned about the deceleration of the labor market, and more federal dismissals can only aggravate concerns.

“It can be dangerous for investors to base their expectations on the reaction of assets in the previous closing events. This would mean that there is no potential to fall in the yields of shares and bonds in a context of economic weakening, and would generate a false sensation of complacency in case of a prolonged closure,” he said Peter Coreyco -founder and strategist Market Chief of Pave Finance.

Betting on features of fees increase after weakness in the labor market.

The yields of the treasure bonds fellsince bets on new type cuts by the Fed were backed by data that show the greatest fall in US private payroll in two and a half years during September.

Companies eliminated 32,000 jobs last month, the largest fall since March 2023while the August figures were also checked down, showing a loss of 3,000 jobs compared to the initial gain of 54,000 reports reported. This statement became more important for the market, since it is likely that the closure of the US government delays the publication of non -agricultural payrolls of September, which are expected for Friday.

Investors considered that payroll data will provide more conclusive indications on the labor market, whose cooling was one of the main reasons for the Fed type cutting in September.

“The key to investors will be whether the next non -agricultural payroll report, scheduled for this week, is delayed due to closure. If so, this could prevent the market from seeing below zero the figure of 22,000 positions in August, as possible, since statistics are already dangerously close. A delay would postpone any disappointment of investors and give the market the opportunity to publish more positive data meanwhile to soften the impact, “according to analysts

The outstanding actions of Wall Street

In the corporate sector, the actions of Nike They rose 6.4% after the sportswear giant published results from the first quarter better than expected, which suggests that their recovery effort progresses despite the weakness in the weakness China and the tariffs that press the margins.

The footwear retailer reported quarterly profits above Wall Street expectations after Tuesday’s closure, driven by higher wholesale revenues. Nike reported a surprising increase in the revenue of the first quartera sign of the initial success of your CEO plan, Elliott Hillto return Nike to his old glory.

Netflix 2.3% fell when Elon MuskCEO of Teslahe asked his followers to cancel their subscriptions at the streaming service. “Cancel Netflix for the health of their children,” Musk wrote on his social media platform Xresponding to a publication, which accused the same of promoting a transgender agenda.

CONAGRA BRANDS He advanced 5.3% after the packaged food giant exceeds the expectations of quarterly profits, despite the continuous challenges of inflationary pressures and a cautious consumer.

Reddit It descended 12% due to growing concerns about the decrease in daily active users (DAU) and the reduction of their participation in catgpt appointments.

Fortress Biotech inc 30% collapsed after the company announced that the US Food and Medicines Administration (FDA) He issued a full response letter for Menkes’ disease treatment. The FDA He rejected the application for a new drug for CUTX-101 (copper histidinate), and cited deficiencies in good manufacturing practices (CGMP) in the manufacturing installation. This regulatory setback affects the medication aimed at treating Menkes, a rare genetic disorder, in pediatric patients.