US Government Shutdown Ends, But Market Braces for Economic Impact
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After a grueling 43 days, the longest partial shutdown in US government history is officially over. President Trump’s signature on the interim budget approved by Congress brings an end to the impasse, but the economic repercussions are far from settled. Market expert Andreas Lipkow warns that traders should anticipate a wave of potentially disappointing economic data emerging from the US in the coming weeks.
Stock Market Swings: Winners and Losers
The market reaction to the shutdown’s end has been decidedly mixed, with some sectors experiencing gains while others faced significant losses. Here’s a closer look at how key stocks performed:
Pharmaceuticals: Pfizer Trims BioNTech stake
Shares of BioNTech took a hit, falling 7%. This decline coincided with news, reported by Bloomberg, that Pfizer is selling a portion of its stake in the Mainz-based company. Pfizer is offering 4.55 million US-listed depository receipts (ADR) priced between $108 and $111.70 (approximately €96) per share, potentially generating around half a billion dollars. Importantly,BioNTech has reassured investors that their collaboration with Pfizer remains strong.
Pfizer shares closed slightly lower, down 0.3%.
Tech & Networking: Cisco Soars
Cisco Systems bucked the trend, seeing a robust 4.6% increase in its share price. This positive movement followed a surprisingly strong first quarter, leading the network supplier to express optimism about its full-year financial outlook.
Entertainment & Finance: Disney and Banking Sectors Struggle
walt Disney proved to be the Dow’s worst performer, with its securities dropping 7.8%. The entertainment giant’s fourth-quarter revenue fell short of analyst expectations, and concerns over rising costs for new film projects are weighing on the current quarter’s prospects.
The financial sector also experienced losses. Goldman Sachs plummeted 4%, while Nvidia, JPMorgan, and Caterpillar all closed down 3.6% and 3.4% respectively.
Analyst Influence: Nike and Dollar Tree See Divergent Fates
analyst ratings played a significant role in individual stock movements. Nike benefited from an upgrade to “overweight” by Wells Fargo, resulting in a 2.9% price increase. Conversely, Dollar Tree shares fell 2.9% after Goldman Sachs downgraded the retailer from “Buy” to “Sell”.
Stay tuned to World Today News for ongoing coverage of the economic fallout from the US government shutdown and its impact on global markets.
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