In the U.S. New York stock market, the three major indexes were lower early on the 13th local time. Although the U.S. federal government shutdown was lifted, analysts said the artificial intelligence (AI) bubble argument is still putting downward pressure on the market.
As of 9:44 a.m., the blue-chip Dow Jones Industrial Average was down 99.34 points, or 0.21%, at 48,155.48 from the previous session.
At the same time, the large-cap Standard & Poor's (S&P) 500 was down 51.71 points, or 0.75%, at 6,799.21 from the day before. The tech-heavy Nasdaq Composite was down 311.82 points, or 1.33%, at 23,102.51 from the previous session.
U.S. President Donald Trump signed a stopgap spending bill the day before, ending the shutdown after a record 43 days, but investor sentiment remains subdued. Optimism over the shutdown's end was already priced in, and expectations for rate cuts have instead weakened. According to the Chicago Mercantile Exchange (CME) FedWatch tool, federal funds futures put the probability of the benchmark rate being held in December at 46.4%, jumping from 37.1% the previous day.
Uncertainty over economic indicators that will be released all at once after the shutdown also weighed on sentiment. Carol Schleif, chief market strategist at BMO Private Wealth, said, "Government policy will soon restart, but the missed releases of inflation and jobs data and the uncertainty over how those figures have evolved remain significant," adding, "When government actions and economic data releases resume, the market could tumble in the coming weeks."
The AI bubble argument is also a factor that could put downward pressure on stocks. As analysis continues that AI and semiconductor-related shares are at a peak, the Philadelphia Semiconductor Index is down more than 1%, and Nvidia, Broadcom, and TSMC are down more than 2%.
Blue chips that had recently risen were also weak on the day. Walt Disney plunged more than 8% as it showed mixed directional guidance for third-quarter results. By sector, all groups were lower except health care, energy, and consumer staples. Alphabet fell more than 2%, and Tesla was down 4.19%.
European stocks were mixed. The Euro Stoxx 50 was down 0.32% at 5,768.93 from the previous session, and Germany's DAX was down 0.92%. Britain's FTSE 100 was down 0.79%, while France's CAC 40 was up 0.29%.
International oil prices, which plunged the day before, were rebounding. At the same time, front-month West Texas Intermediate (WTI) for December delivery was up 0.85% at $58.99 a barrel from the previous session.