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The Dow Jones Industrial Average (DJIA) steadies its grip on Monday, starting the new trading week holding near the 47,000 major handle. Equity markets pulled back last week as the AI tech rally shows signs of unwinding, or at least taking a breather, and investors are looking for an end to what has become the longest US government funding shutdown in history.

Following a week of exhaustion-based pullbacks, AI tech leaders are back at the forefront as investors await meaningful details on a possible funding gap for federal operations to resume. The funding bill, which only keeps the US government open through January, will put markets on a collision course with further political unease in a few months’ time. 

Hopes for a temporary funding solution reignite investor hopes
 

The longest US government shutdown in history has pushed consumer confidence to its lowest readings on record, according to data from the University of Michigan last week. A lack of official numbers on inflation and employment has also pushed investors to increase their reliance on volatile public datasets.

This week would have seen the release of the latest US Consumer Price Index (CPI) and Producer Price Index (PPI) inflation datasets, but there is hope that the US House of Representatives will push a pending temporary funding measure through in time to get a fresh round of inflation and employment statistics before the Federal Reserve’s (Fed) next interest rate decision on December 10. At the latest interest rate decision, Fed Chair Jerome Powell expressed unease about making further interest rate moves amid a lack of critical government data, sending December rate cut hopes into a tailspin.

Dow Jones daily chart
 

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