US Government Shutdown Ends After 42 Days, Boosting Markets

According to the latest reports, the 42-day US government shutdown is expected to come to an end in the coming days. This has provided a much-needed boost to the US stock market, with the Dow Jones gaining over 400 points and the Nasdaq leading the gains with an advance of over 2%.

The reopening of the government is seen as a positive development, as it will allow for the release of delayed economic data, which could provide more insight into the health of the US jobs market and the broader economy. However, experts warn that it will take several weeks for the market to receive all the data that has been delayed since the beginning of the shutdown.

Moreover, there are concerns that the quality of government data may be affected, leaving the private data as a more relevant source for near-term monetary policy expectations. In response, the newly appointed Federal Reserve Governor, Stephen Miran, has suggested that the central bank should consider reducing interest rates by 50 basis points during its next policy meeting in December, or at least by 25 basis points.

The prospect of rate cuts has also boosted gold prices, which have risen above $4,100 an ounce on Monday. Investors are hopeful that the Federal Reserve will take action to support the economy in the face of the data quality concerns.