Image Source: Unsplash
 

The Dow Jones Industrial Average (DJIA) took a sharp step back on Thursday, declining around 500 points at its lowest and falling away from record highs posted during the midweek market session. US President Donald Trump signed off his formal presidential approval of a short-term funding solution to get the federal government reopened. The temporary funding bill will see federal operations restart until the end of January, and brings an end to what has become the longest US government shutdown in American history.

Healthcare stocks and energies saw scattered gains on Thursday, but an ongoing tilt back into more traditional investment segments is doing little to stave off a spreading decline in the tech sector. The AI and tech trades continue to bleed on the floor, with Tesla (TSLA) declining 6.6% and ambiguously AI-connected Palantir (PLTR) shedding over 5% on Thursday.

Disney (DIS) also fell by over 9% on Thursday, slipping to $106.00 per share after missing on overall revenue expectations despite beating earnings estimates. Mixed segment results combined to generate overall revenue of $94.4 billion for the fiscal year, up 3% from 2024’s $91.4 billion.

Lack of data almost fixed?
 

With the US government set to reopen, at least temporarily, markets are now looking ahead to the resumption of critical economic dataset releases. US White House officials toyed with the idea of declaring entire batches of inflation and growth data as “lost” during the government closure, specifically the October inflation and employment figures, which could never be released. A critical gap in key inflation and labor information is a prospect that is likely sitting poorly with investors who are eager to try and draw a bead on the chances of a third straight interest rate cut from the Federal Reserve (Fed) on December 10.

Despite a potential gap in the October data, September’s Nonfarm Payrolls (NFP) jobs report is rumored to be getting prepared for a late release next week, and will serve as one of the last chances for the Fed to take a dipstick measurement of the US economy before its next interest rate decision. According to the CME’s FedWatch Tool, rate traders are pricing in slightly less than 50% odds of a quarter-point rate cut in December, with around 90% odds that the Fed will blink and wait until January 28, 2026, before giving a third 25 basis point cut.

Dow Jones daily chart
 

More By This Author: