Global stock markets experienced a sluggish day on Thursday following the signing of a US spending bill by President Donald Trump, which brought an end to the record-long government shutdown. The tech-heavy Nasdaq index lost over 1% in early trading, with notable declines from chip giant Nvidia, which shed 2.8%. The Dow and S&P 500 indices also saw declines, dropping by around 0.5%.
In Europe, London and Frankfurt’s markets lost close to 1% as the region approached the close of trading, while Paris bucked the trend, gaining 0.4% two hours before the closing bell. Analysts are now questioning whether the market’s recent exuberance has run its course, given the uncertain impact of the US shutdown on equities.
Wall Street had closed mostly higher on Wednesday, with the Dow reaching a fresh record amid speculation that traders are shifting from tech to industrials. However, London’s market fell after data showed the UK economy slowed in the third quarter, dealing another blow to the government ahead of its annual budget.
In corporate news, shares in luxury fashion label Burberry jumped around 5% on London’s FTSE 100 index before slipping back after the company narrowed its first-half losses thanks to significant cost-cutting. Asian markets were mixed, with Tokyo, Hong Kong, Shanghai, and Seoul rising, while Sydney, Wellington, and Taipei fell.
The US government shutdown, which lasted 43 days, has delayed the release of key economic data, including jobs and consumer prices for October. The Federal Reserve is expected to assess whether to cut rates next month, but the delayed data may impact this decision. Concerns are also growing that the AI-led market rally may have pushed valuations too high, potentially leading to a bubble in the tech sector.
Oil prices advanced after plunging 4% on Wednesday, following OPEC’s monthly crude market report forecasting an oversupply in the third quarter. The commodity has come under pressure from easing tensions in the Middle East and increased output from OPEC and other key producers.
As of 1445 GMT, key figures showed the Dow down 0.3% at 48,119.57 points, the S&P 500 down 0.7% at 6,805.78, and the Nasdaq Composite down 1.1% at 23,145.50. In Europe, the FTSE 100 was down 0.8% at 9,835.51, while the CAC 40 in Paris was up 0.4% at 8,274.47. The yen weakened against the dollar, trading at 154.66, while the euro rose to $1.1620. Brent North Sea Crude was up 1.0% at $63.34 per barrel, and West Texas Intermediate was up 1.0% at $59.08 per barrel.