Bond markets reflected cautious sentiment. The 10-year Treasury yield moved up to 4.10%, and yields climbed across the curve. Investors priced in near-even chances of a rate cut in December. Germany’s 10-year yield rose to 2.69%, while the UK’s 10-year yield advanced to 4.44%.
Federal Reserve officials signaled mixed views on the coming policy decision. Chair Jerome Powell noted that a December cut remains uncertain. Cleveland Fed President Beth Hammack emphasized the need to restore price stability as the labor market eases. San Francisco Fed President Mary Daly said policymakers need more information before deciding on the next step.
Several analysts said the shutdown will continue to affect data collection for weeks. Survey-based readings missed during the closure require time to gather and analyze. Some field-collected indicators, such as consumer prices, cannot be reconstructed. Traders expect the data void to persist through November, raising the possibility of sentiment-driven market swings.
Equity strategists reported signs of rotation out of high-growth technology shares and into defensive or value-oriented sectors. Some highlighted increased insider selling within major tech firms, which often signals caution. Analysts at Bloomberg Intelligence said strong revenue growth supported the sector’s earlier rally, but current valuations now sit above historical norms.