Global Markets Stabilize After Tech Selloff With US Indices Showing Bullish Outlook
Global markets are showing signs of stabilization following a sharp tech selloff last week, as investors react positively to progress in ending the government shutdown. Dow Jones futures increased by 0.1%, S&P 500 futures by 0.7%, and Nasdaq futures by 1.2% after the Senate passed a short-term spending package with a 60-40 vote, ending the record government shutdown. The deal includes a promise for a December vote on extending ObamaCare tax credits by a year. The shutdown had been impacting the economy, causing flight disruptions and raising concerns about air traffic halts by Thanksgiving. Last week, major indices suffered significant losses: the Dow fell 1.2%, the S&P 500 declined 1.6%, and the Nasdaq dropped 3%. Despite this, some leading stocks like Nvidia, Intuitive Surgical, Valero Energy, and MongoDB showed bullish action, with Nvidia holding above a buy point before earnings scheduled for November 19. Market sentiment remains cautious, as indexes held their 50-day moving averages but still experienced weekly losses. Investors are advised to stay flexible, watch for signs of a sustained rebound, and focus on stocks with relative strength. ETFs such as the ARK Innovation ETF, iShares Expanded Tech-Software Sector ETF, and others experienced notable declines but rebounded off lows. The bond market saw the 10-year Treasury yield rise slightly to 4.13%, while crude oil prices fell 2% to $59.75 per barrel. Market analysts suggest that a resolution to the government shutdown could positively influence market direction, but investors should remain vigilant and strategic, maintaining updated watchlists and clear exit strategies.
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