S&P 500 Declines Amid Fading Government Reopening Optimism
The S&P 500 tumbled over 1% as Optimism surrounding the government reopening faded, turning into a classic 'buy the rumor, sell the news' event. President Trump's signing of a bill to reopen the government and extend federal funding failed to sustain market momentum. Technology stocks led the decline, with Nvidia, Palantir, Broadcom, and Tesla all posting significant losses.
Economic uncertainty intensified as key inflation and labor market data remained backlogged due to the shutdown. The Labor Department may release September's jobs report next week, but October's report will exclude the unemployment rate. Market sentiment soured further as CNN's Fear and Greed Index slipped back into 'extreme fear' territory, accompanied by a 19% spike in the Volatility Index.
