Source: Cailian
In front of the U.S. stock market on Thursday, the three major equity index futures rose slightly ###, and investors did not seem to be interested in concerns around the U.S. government's latest "closure".
As of press time, Dow Jones futures rose 0.02%, S&P 500 futures rose 0.28%, and Nasdaq 100 futures rose 0.57%.
The three major U.S. indices recorded "four consecutive rises" on Wednesday, with both the index and the index reaching a record high, because the market hopes the government shutdown will be short-lived, thereby limiting the serious impact on the economy.The day before, the Democratic and Republican senior levels failed to agree on an agreement to keep the government running before the deadline, leading to the U.S. government's seven-year shutdown again.
For investors, the biggest question now remains how long the current stalemate will last. According to reports, the senators will have a holiday to celebrate Yom Kippur and are not expected to vote again until the 3rd. This means that the government "shutdown" may last for at least three days. In the forecast market, traders are betting that the government shutdown may last for nearly two weeks.
"I think this government shutdown is likely to last longer than 2018, but other factors will ultimately be more important," Dan Niles, founder and portfolio manager of asset management firm Niles Investment Management, posted on X.
He listed three so-called “more important factors”: 1) solid quarterly results for the upcoming third quarter; 2) sustained optimism for artificial intelligence; and 3) the next Fed meeting on October 29 (he expects the Fed to cut interest rates three times this year).
"In conclusion, I think although there may be some volatility in the near term, it will eventually hit new highs as the market slowly moves higher," Niles added.
In addition, historically, stock markets have not been much affected by government shutdowns, but investors are closely watching the government shutdowns given the more volatile policy and macroeconomic background, the rebound led by AI, rising market valuations and concentration, and ongoing inflation concerns.
At the same time, President Trump threatened to mass "permanent layoffs" of federal workers during the government shutdown, fueling concerns about a slowing labor market.
本周政府停摆期间的经济数据中断也是人们最关注的问题。周五的非农就业数据可能延迟发布，通常于周四发布的首次申请失业金人数数据也是如此。不过，据Challenger， Gray & Christmas的数据，美国雇主9月缩减了招聘计划，尽管它们宣布的裁员人数也有所减少。
In short, the further impact of the government shutdown remains to be seen, while the currency markets have almost completely digested the Fed’s rate cuts by 25 basis points at the end of this month to support the labor market, with an 80 percent probability of falling rates again in December.
European stock markets in trading rose overall, with Germany's DAX index up 1.44%, Britain's FTSE 100 index up 0.12%, and France's CAC40 index up 1.51%.
company news
[Buffett's company plans to spend US$10 billion to acquire Western oil assets]
Berkshire Hathaway, a subsidiary of well-known American investor Buffett, announced on Thursday that it will acquire OxyChem, a petrochemical subsidiary of Occidental Petroleum, for $9.7 billion in cash. The deal is Berkshire's largest since 2022, when it acquired insurance company Alleghany for $11.6 billion.
It is that Berkshire-Hassaway has multiplied its holdings in Western oil in recent years, currently holding more than 28 percent. Despite being allowed to buy the top 50% of its shares, Buffett has made it clear that he does not intend to hold the company entirely.Driven by the news of this acquisition, Western Oil Company shares have risen more than 1% in front of the board.
[Amazon launches new private brand to compete with Wal-Mart and Opener]
Amazon announced Wednesday the launch of a new food private brand, Amazon Grocery, which will integrate the company's existing Amazon Fresh and Happy Belly product lines. Amazon Fresh will offer more than 1000 groceries, almost all of which will be priced below $5 and have customer ratings of no less than 4 stars.
"Amazon Fresh" will directly target Kirkland Signature, which is a market-opening customer, and Wal-Mart's Great Value brand, aiming to strengthen the e-commerce giant's influence among price-sensitive consumer groups under inflationary pressure.
US outsourcing giant Doordash completed the acquisition of British rival Deliveroo
In May this year, Doordash and Deliveroo announced an agreement on the terms of the acquisition, Doordash will acquire Deliveroo for 180 pence per share in cash, the acquisition valued on Deliveroo at around £2.9 billion.
[Two Delta Air Lines planes collided at low speed while taxiing, one person was slightly injured]
According to reports, two Delta Air Lines regional jets collided at low speed while taxiing at New York's LaGuardia Airport. One plane's wing was damaged and one person was slightly injured. It is reported that the incident passenger plane belonged to Endeavour Airlines, a subsidiary of Delta Air Lines. The Port Authority of New York and New Jersey said the incident had no impact on airport operations.
Delta said it will work with the Port Authority, the U.S. Federal Aviation Administration and the National Transportation Safety Commission.
[OpenAI completed stock trading at a record $50 billion valuation]
According to a person familiar with the matter, OpenAI has completed a deal that allows current and former employees to sell shares worth approximately $6.6 billion at a company valuation of $500 billion. The secondary transaction puts the ChatGPT developer's valuation beyond Elon Musk's Space Exploration Technologies (SpaceX) to become the world's most valued start-up.
Earlier, in a $40 billion round of funding led by SoftBank Group, OpenAI was valued at $300 billion. The source said that as part of the transaction, OpenAI employees sold shares to a group of investors, including Thrive Capital, SoftBank, Dragoneer Investment Group, Abu Dhabi’s MGX and T. Rowe Price. The person requested anonymity because of the lack of information.