US100 fully reverses Asian session losses, sits just 0.3% from historical peak
The US100 is up 0.4% today, approaching the 25,000 mark and sitting just 0.3% shy of its all-time high. The contract has fully reversed the decline that began yesterday evening and lasted until the start of the European session. Furthermore, gains on the Nasdaq 100 futures accelerated sharply upon the opening of Wall Street today.
The rally is occurring despite the ongoing government shutdown. While the shutdown may have limited immediate impact on the operations of key technology companies, Wall Street indices have historically tended to gain during government closures—an outcome that often appears counter-intuitive. Nevertheless, the shutdown increases the likelihood of a deterioration in the labour market, which could compel the Federal Reserve to cut interest rates.
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The main drivers today are biotechnology and pharmaceutical stocks, even though the government shutdown may cause a slowdown in areas like new drug approvals. Chip manufacturers form the second strongest cohort of gaining stocks today.
Stocks within the Nasdaq 100 are split almost fifty-fifty in terms of gains and losses today. Source: Bloomberg Finance LP
The US100 has rebounded by approximately 1% (around 300 points) from its session low today. Source: xStation5
