Tech Rebound and Shutdown Optimism Lift Global Stocks – Europe Market Wrap
Global equities advanced as a renewed rally in technology shares and growing confidence in a resolution to the US government shutdown buoyed investor sentiment.
Nasdaq 100 futures climbed 0.5%, led by gains in Nvidia and its peers among the so-called Magnificent Seven. Advanced Micro Devices jumped 5% in premarket trading after projecting faster revenue growth, while Nvidia supplier Hon Hai Precision and Europe’s Infineon Technologies both issued upbeat outlooks.
S&P 500 contracts added 0.3%, signaling the index may extend its winning streak after investors rotated out of technology and into defensive sectors earlier in the week. Treasuries gained, mirroring earlier futures advances after the cash market’s Veterans Day closure. The dollar and gold were steady.
The 43-day US government shutdown appeared close to ending as House lawmakers prepared to vote on a spending bill. The reopening of federal agencies would allow the return of crucial economic data releases, which traders hope will strengthen the case for a Federal Reserve rate cut amid uncertainty over the timing of policy easing.
Historical patterns suggest markets typically rebound following the end of a shutdown. The S&P 500 and most of its sectors have posted gains after every government closure since 1995, with consumer stocks often leading. However, after this week’s 1.8% advance, analysts say much of the potential post-shutdown rally may already be priced in.
In the UK, gilts and sterling weakened after fresh political turmoil hit Prime Minister Keir Starmer’s government. Reports surfaced that cabinet minister Wes Streeting was maneuvering to challenge the leadership, escalating tensions just weeks before a budget expected to include income tax increases.
Despite the rebound, some strategists warn that US equities remain expensive, with the S&P 500 on track for a fourth consecutive gain after concerns over inflated valuations and the durability of the AI-driven rally rattled markets last week.
