WASHINGTON / LONDON (IT BOLTWISE) – Hopes are growing for an end to the longest U.S. government shutdown after the Senate made progress on a compromise. This development has boosted stock markets while the yen and bonds are weakening. Investors are relieved as the uncertainties surrounding AI valuations and the economic consequences of the shutdown have weighed heavily on the markets in recent weeks.
Today’s daily deals at Amazon! ˗ˋˏ$ˎˊ˗
Recent developments in the USA have thrown financial markets into turmoil. After a 40-day government shutdown, the longest in United States history, there are now signs of a possible deal. The Senate, led by Republicans led by John Thune, plans to vote on a slim spending package that could end the gridlock. The news boosted stock markets, while the yen and bonds fell in value.
Technology stocks in particular showed a positive reaction. S&P 500 futures rose 0.6%, while Nasdaq 100 futures rose 1.1%. This recovery comes after a week in which markets were dominated by uncertainty over high valuations in the artificial intelligence (AI) sector. Investors are relieved that the political stalemate in the US may be easing, boosting risk appetite again.
The effects of the shutdown were far-reaching. In addition to the direct economic consequences, such as the lack of salaries for government employees, the uncertainty also led to reluctance to invest. The tech industry, which is heavily dependent on government contracts and funding, was particularly affected. The prospect of an agreement could now provide momentum again and increase the willingness to invest.
Another factor that weighed on the markets was the high valuations in the AI sector. Analysts had warned of a possible bubble in recent weeks because expectations for the technology sometimes appeared unrealistically high. With the prospect of an end to the shutdown, investors could now focus more on the fundamental strengths of companies and reassess valuations.
The coming days will be crucial. If the Senate actually reaches an agreement, this could not only calm the markets, but also increase confidence in the US’s ability to act politically. This would be a positive signal for the global economy, which has been characterized by geopolitical tensions and economic uncertainty in recent months.
Order an Amazon credit card without an annual fee with a credit limit of 2,000 euros!
Bestseller No. 1 ᵃ⤻ᶻ “KI Gadgets”
Bestseller No. 2 ᵃ⤻ᶻ “KI Gadgets”
Bestseller No. 3 ᵃ⤻ᶻ “KI Gadgets”
Bestseller No. 4 ᵃ⤻ᶻ “KI Gadgets”
Bestseller No. 5 ᵃ⤻ᶻ “KI Gadgets”
Please send any additions and information to the editorial team by email to de-info[at]it-boltwise.de. Since we cannot rule out AI hallucinations, which rarely occur with AI-generated news and content, we ask you to contact us via email and inform us in the event of false statements or misinformation. Please don’t forget to include the article headline in the email: “US government nears end of longest shutdown”.