Investment Week at a Glance
Stocks finished higher for the week. The Dow Jones Industrial Average rose 1.1%, the S&P 500 was up 1.1%, and the NASDAQ rose 1.3%. Foreign stocks (MSCI EAFE) were also up for the week rising 1.7%. Bond prices were up for the week, with the 10-year U.S. Treasury ending the week at 4.12%. (Data source: Wall Street Journal)
Government Shutdown Begins
The U.S. government has shut down, pausing nonessential operations, which delays key economic data for the market. For the time being, that is probably the biggest worry from the market’s point of view is that inflation and jobs data will be delayed, which could cause some uncertainty for the Fed and investors. If the shutdown is prolonged, there could be more serious economic damage, but currently that is not expected to happen. This is the 20th shutdown since 1976, so while not common, it is something that markets have dealt with in the past.
New All Time-Highs
The S&P 500 continues to hit new all-time highs and has now had 31 closing highs for the year. The index is now up 14% for the year and has rallied 35% since the April lows with very little volatility on the way up. With the 3rd quarter wrapping up and earnings season on the horizon, investors will be paying close attention to see if the strong earnings numbers continue. Investors will also hope for the government to reopen and for economic data to come in before the next Fed meeting.
Eli Lilly Rises 15%
Eli Lilly, the largest pharmaceutical company, rose 15% last week on a promising outlook for its weight loss drug, which is also being considered as a possible treatment for Alzheimer’s. Another positive for the company is the outlook on tariffs and recent discussions with the Trump administration. The stock is up nearly 35% since August 8th as its market cap approaches $800 billion. Investors will hope for the strong rally to continue. (CNBC)
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Quiz
What was the longest government shutdown? (Scroll Down for Answer)
- 19 days
- 25 days
- 31 days
- 35 days
Answer:
4. 35 days. The longest shutdown was in 2018-2019 when the government shutdown for 35 days. The 2nd longest shutdown was 21 days from 1995-1996.
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