Partial U.S. Government Shutdown Threatens Economic Data, Stocks Mixed
A partial U.S. government shutdown, the 22nd since 1979, is ongoing due to a failed stopgap bill in the Senate. This could disrupt economic data crucial for the Federal Reserve's monetary policy, including the closely watched monthly jobs report due Friday. Meanwhile, the stock market saw a mixed day, with the tech-heavy Nasdaq 100 and S&P 500 rising, while the Dow Jones Industrial remained relatively flat.
The shutdown, now in its second day, has led to some government operations being closed or reduced. However, essential services continue. In the stock market, the Nasdaq 100 climbed 0.30 percent to 24,754 points, led by strong performances in the pharmaceutical and technology sectors. The S&P 500 also rose by 0.20 percent to 6,702 points.
Pharmaceutical stocks surged following the U.S. government's direct negotiations with drug manufacturers to lower prices. Pfizer shares jumped another 3.8 percent after agreeing to reduce Medicaid drug prices and offer medications at rates comparable to other wealthy nations. Other companies like Amgen and Merck & Co. also saw significant gains, rising by 5.9 percent and 7.2 percent respectively, extending their previous day's gains. Nike shares soared by 4.9 percent on strong first-quarter results, with analysts advising investors to 'Just Buy It'. Conversely, Walmart shares fell by 1.5 percent due to a listeria outbreak linked to products sold by Trader Joe's and Walmart.
The ongoing U.S. government shutdown could potentially disrupt economic data collection, impacting the Federal Reserve's monetary policy decisions. In the stock market, pharmaceutical and technology sectors drove gains, while Walmart shares fell due to a food safety issue. Investors will be watching for further developments, particularly the monthly jobs report due out on Friday, which could be affected by the shutdown.
