Global Markets Show Mixed Signals Amid U.S. Government Shutdown Uncertainty
Global markets exhibited erratic behavior as investors awaited resolution to the U.S. government shutdown. The Dow Jones Industrial Average surged over 550 points to a record close, while the Nasdaq Composite retreated—highlighting a sector rotation from tech to lagging sectors.
European markets opened strong, with the Stoxx 600 up 0.6% and Italy's FTSE MIB hitting a 23-year high. Piper Sandler's Craig Johnson noted the unusual rotation: "When very few groups make new highs and stocks struggle to hold key moving averages, you're seeing capital repositioning rather than broad conviction."
Futures markets reflected the indecision, with Dow futures eking out a 0.01% gain while S&P 500 and Nasdaq 100 futures crawled up less than 0.1%. The divergence between record-setting traditional indices and struggling tech stocks suggests a risk-averse tilt among institutional players.
