US Equity Markets increased last week despite the US Government shutdown and a lack of government-provided economic data. The S&P 500 rose 1.1% for the week and is now up 14.2% for the year. The Nasdaq was up 1.3% for the week to bring its gains for the year to 18.0%, while the Russell 2000 (small cap stocks) increased 1.7% for the week and is now up 11.0% for the year.
Global Equity Markets rose sharply last week with several European and Asian indices hitting all-time highs as investors hope for lower rates and fiscal stimulus. Developed Markets surged 2.5% for the week and are now up 24.5% for the year. Emerging Markets rallied 3.5% for the week to bring its gains for the year to 27.8%.
Mixed Consumer and Job-related Data last week. Consumer Confidence for September dropped to 94.2, below expectations, compared to 97.8 in August, though it remains up from March/April 2025 amidst the tariff announcements. By contrast, the Job Openings (JOLTs) report for August rose to 7.23 million jobs, better than expectations and up from 7.21 million in July.
Of Interest to Us
US Government Shutdowns have historically been immaterial to equity markets. Prior to the current shutdown, there have been 20 government shutdowns since 1976 that have averaged 8 days. The return of the S&P 500 has averaged about 0.5% over those shutdowns, with the S&P 500 generally higher three months after the government has re-opened. Equity markets appear to recognize that any disruptions tied to shutdowns should be short-lived.
Market Data
for the week ending 10/3/2025
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