Dow Jones and Nasdaq Index Bounce Back as Shutdown End Nears, DJT Q3 Earnings
Friday afternoon saw a jump in U.S. stocks as market mood improved and early-session losses were reversed due to optimism over a potential..
Quick overview
- U.S. stocks surged on Friday as optimism over a potential government funding agreement reversed earlier losses.
- The Dow Jones and Nasdaq rebounded from key support levels, though the Nasdaq ended the week down approximately 4%.
- Softer inflation signals contributed to market optimism, suggesting the Federal Reserve may adopt a more cautious approach.
- Despite the late-week rally, investors remain cautious ahead of upcoming CPI data and Federal Reserve commentary.
Live DOW Chart
Friday afternoon saw a jump in U.S. stocks as market mood improved and early-session losses were reversed due to optimism over a potential government financing arrangement.
Momentum Returns After a Tumultuous Week
After a week dominated by fears of a prolonged U.S. government shutdown and mixed earnings results, major stock indices made a powerful comeback on Friday. The turnaround came as reports signaled progress toward a funding deal in Washington, calming investor nerves that had pushed markets sharply lower earlier in the week.
The Dow Jones and Nasdaq both rebounded from key technical support levels, with buying accelerating through the afternoon session. Although the Nasdaq still ended the week down roughly 4%, the recovery reinforced confidence that the broader uptrend remains intact heading into mid-November.
Easing Inflation Expectations Boost Sentiment
Part of Friday’s rally was sparked by softer inflation signals. The University of Michigan’s latest consumer survey pointed to more dovish inflation expectations, while the New York Fed’s one-year inflation outlook showed a decline — both suggesting inflationary pressures may be easing faster than expected.
This helped fuel optimism that the Federal Reserve could adopt a more cautious tone at upcoming meetings, easing fears of further tightening.
Shutdown Negotiations Offer Relief
Meanwhile, political developments in Washington provided another tailwind. Senate Majority Leader Chuck Schumer indicated that lawmakers are working toward a deal that could extend healthcare subsidies for one year, a move seen as progress in averting a government shutdown.
Though the initial headlines broke mid-morning, the market didn’t bottom until midday — coinciding with the European close — suggesting a mix of technical and global factors contributed to the turnaround.
U.S. Stocks End the Week Lower as Tech Losses Deepen
Nasdaq Composite:
- The Nasdaq Composite closed at 23,004.54, falling −49.46 points or -0.21% on Friday and down 4% for the week.
- Heavy losses in large-cap tech and semiconductor names weighed on the index, marking its worst weekly performance since August. Persistent profit-taking and soft guidance from key AI-linked firms kept sentiment cautious.
Dow Jones Industrial Average:
- The Dow Jones Industrial Average (DJIA) edged slightly higher, gaining +74.80 points or +0.16% to finish at 46,987.10, but still ended the week -1.49% lower.
- Defensive sectors like financials and utilities helped offset declines in industrials, though cyclical weakness and renewed economic uncertainty limited upside momentum.
S&P 500 Index:
- The S&P 500 gained +8.48 points or %, closing at 6,728.80 and posting a 2.23% weekly decline.
- Broad-based selling hit growth and consumer discretionary sectors, while energy and healthcare provided modest support late in the session.
Trump Media Ends Q3 with Strong Asset Base and Crypto-Linked Gains
At the conclusion of the third quarter, Trump Media & Technology Group (NASDAQ: DJT) reported $3.1 billion in total assets, highlighting a solid balance sheet position for the company. Notably, the firm generated $15.3 million in profit from option premiums tied to bitcoin-related instruments, underscoring its growing involvement in digital asset markets. The crypto-linked gains provided a meaningful boost to quarterly results and signaled management’s willingness to explore alternative revenue sources beyond its core media operations.
Outlook: Fragile Optimism Ahead of CPI Data
Despite the late-week rebound, investors remain cautious. Market sentiment is still shaped by concerns over stretched valuations and slowing corporate growth. Traders are now turning their focus to next week’s U.S. CPI report and Federal Reserve commentary, which could dictate whether the recent bounce marks the start of a sustained recovery or just a temporary reprieve.
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