The markets began the week on a strong note following the re-opening of the U.S. government after a prolonged shutdown. However, momentum faded as concerns resurfaced regarding elevated valuations in AI-related stocks and uncertainty surrounding the Federal Reserve’s next policy move. The S&P 500 ended the week up 0.08%.
Following the longest government shutdown in history, Q4 growth could experience a slight contraction. However, delayed government-driven demand from back pay for furloughed workers is expected to contribute to growth in the first quarter of 2026. The uncertainty surrounding the Fed’s December rate cut could increase volatility as we approach the end of the year. Staying diversified and invested through periods of volatility is key to achieving a successful long-term investment strategy.
Weekly Outlook
With the government now reopened, investors should expect September’s Employment Situation and October’s Consumer Price Index to be released soon.
For a more detailed analysis of last week’s markets and economic trends, check out the latest issue of Market Week.
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Regards,
David Bennett