Benchmark indices on Wall Street began the new trading week on a choppy, albeit positive note. Indices ended the day higher, not before cooling off from their respective intraday highs, particularly the tech-heavy indices.The Dow Jones, having traded lower for a better part of the session, recovered from the lows to end higher. On the other side, the S&P 500 and Nasdaq, supported by Nvidia, ended higher, but off the session’s highs.Worries over a potential government shutdown loom large as a meeting between Democratic and Republican leaders with US President Donald Trump, failed to yield any constructive outcome, with both sides continuing to blame one another for the current situation.
Failure to pass the spending bill would trigger a government shutdown from Wednesday, and potentially delay the release of important government data, including the non-farm payrolls, that are scheduled for Friday. However, the US Commerce Department reiterated that tariff-related investigations will continue, regardless of the shutdown situation.Speaking of Tariffs, Trump announced more levies on Monday, this time a “substantial tariff” on countries that do not make furniture in the US and repeated his threat from May this year of a 100% tariff on movies not made in the US. No clarity or details were shared by the White House in both these regards.Fed officials continue to remain divided on the road ahead for monetary policy. Cleveland Fed chief Beth Hammack said she remains worried about the inflation outlook for the economy, a view supported by St. Louis Fed Chief Alberto Musalem. However, New York Fed Chief John Williams said that the risks to inflation have lowered but those for the labor market have risen, although he did not clearly state whether he will support a rate cut during the October 29 policy.Three more Fed officials are set to speak today. Pension Funds are likely to sell US equities worth $19 billion, as part of their quarterly rebalancing exercise, as per Goldman Sachs. JOLTS job openings and consumer confidence are some of the other important data points to watch out for today.
