Wall Street has fallen strongly this Thursday (Dow Jones: -1.65%; S&P500: -1.66%; Nasdaq: -2.29%), with the Nasdaq leading sales with a decrease of more than 2% as doubts grow about the high valuations of technology companies. All this after the end of the longest government shutdown in historyafter President Donald Trump has signed the financing law that ends an Administration impasse that has lasted 42 days. The House of Representatives had already approved the rule with 222 votes in favor and 209 against. The text guarantees the operation of the Executive until the end of January 2026. «The reopening of the US Government will make public services are progressively restoredwhich means that officials will get paid (and work) again, normalizing private consumption,» they indicate in Bankinter. In fact, the Office of Administration and Budget has ordered federal employees to return to their jobs this Thursday. The law also reverses all layoffs related to the closure and ensures that workers will receive the full salary they would have received without the stoppage.
In the House only two Republicans voted against —Thomas Massie and Greg Steube— and six Democrats also rejected the law. During the debate, Rep. Rosa DeLauro warned that some health insurance premiums could «double or even triple» without the protection of additional subsidies from the Affordable Care Act (ACA). The agreement also incorporates provisions for a bipartisan budget process and limits the use of continuing resolutions to finance the Government.
MACRO DATA WHAT EVER? WILL BE PUBLISHED
The opening of the Government also brings with it other good news for investors: official macro indicators will be published again. With everything, from the White House have warned that they believe that Employment and inflation data for last October will «never» be released. Despite this, Bankinter strategists indicate that «there is no special fear about official employment figures that will be published because the privately produced data that has been published has not been bad.» «The approach to US employment figures is a win-win because if it comes out weak it is good, since it will be more likely that the Federal Reserve (Fed) will continue lowering rates, and if it comes out decent, it is also good because it will be understood that the closure of the Government will not have affected the economic cycle,» they add. In this sense, and according to Ipek Ozkardeskaya, senior analyst at Swissquote Bank, «Investors hope upcoming US data will clarify Fed’s intentions for December. However, given that the odds of a cut in December are practically 50%, any data could alter expectations in either direction.»
COMPANIES AND OTHER MARKETS
At the business level, Cisco has risen 4.62% after beat expectations with its results for the first quarter of fiscal 2026, in which it obtained a net profit of $2.9 billion, which represents a year-on-year increase of 5%. The company says that «is on track for its strongest year yet». On the opposite side, Disney shares have fallen 7.77% after the company has presented some mixed fourth quarter and fiscal 2025 results. In other markets, oil West Texas has risen 0.38% ($58.70) and the Brent has gained 0.51% ($63.01). For his part, the euro has appreciated 0.37% ($1.1636), and the ounce of gold has lost 1.05% ($4,169). Furthermore, the 10-year American bond yield has rebounded to 4.115% and the bitcoin has decreased by 3.11% ($98,970).
