US equities opened marginally higher on Friday, with the S&P 500 up 0.2% and Nasdaq up 0.3%, as AI-related stocks continued to drive momentum following record highs, setting indices for a positive weekly close. Concurrently, Apple shares fell 0.7% after a Jefferies downgrade cited excessive investor expectations for iPhone demand. Meanwhile, the federal government shutdown entered its third day, heightening economic uncertainty and blocking the release of key September nonfarm payrolls data, which, while removing a potential downside catalyst for equities, limits the Federal Reserve's insight ahead of its October meeting.
US stocks in the green at open: S&P up 0.2%, Nasdaq up 0.3% - Stocks flat Friday after record highs, AI trade drives momentum. - Government shutdown enters third day, raising economic uncertainty. - Apple falls after Jefferies downgrade citing iPhone demand concerns. US stocks were marginally in the green on Friday as Wall Street took a breather after a strong rally in the previous session that pushed major indices to new record highs. Strength in artificial intelligence-related stocks continued to underpin sentiment, even as the federal government shutdown extended into its third day. The Dow Jones Industrial Average was up 88 points, or 0.2%. The S&P 500 climbed 0.2%, while the Nasdaq advanced 0.3%, with both indexes hitting fresh all-time highs. Apple shares fell about 0.7% after Jefferies downgraded the stock to underperform from hold. The brokerage said investor expectations had become “excessive” as rising demand for the iPhone 17 was fueling speculation around a foldable iPhone 18. The move contrasted with Thursday’s gains across the technology sector, led by Nvidia, which also reached a record high. Despite the political stalemate, equities are on course for a positive week. The S&P 500 is up nearly 1.1% week to date, the Dow has gained 0.6%, and the Nasdaq is higher by 1.6%. Shutdown extends, jobs data blocked Copy link to sectionThe government shutdown, triggered by Congress’ failure on Tuesday to pass a funding bill, is heightening investor concerns about policy and economic uncertainty. President Donald Trump has threatened significant layoffs, saying Democrats had given him an “unprecedented opportunity” to cut federal agencies. The Congressional Budget Office estimates 750,000 federal workers are being furloughed each day. The shutdown has also led to an economic data blackout. The Labor Department halted virtually all activity, preventing the release of the September nonfarm payrolls report on Friday. Top Democrats have remained firm on their demands to include an extension of health-care tax credits in any funding bill, prompting pushback from Trump and congressional Republicans. While the absence of the data removes a potential drag on stocks, it also limits the Federal Reserve’s insight ahead of its October interest rate meeting. “While this deprives the Federal Reserve of a key data point ahead of its October policy meeting, it also removes a potential downside catalyst for equities,” David Morrison, Senior Market Analyst at Trade Nation, said in a note. He added: The last two updates, for July and August, were dismal, with both coming in well below expectations, while there were also some large downward revisions. U.S. equity markets are exhibiting modest gains, with the S&P 500 and Nasdaq Composite advancing 0.2% and 0.3% respectively, continuing a rally that has pushed indices to new record highs. This market momentum is primarily underpinned by sustained strength in artificial intelligence-related equities, which contrasts with an overall tone of market uncertainty. A significant counter-current is the 0.7% decline in Apple shares, triggered by a Jefferies downgrade to "underperform" on concerns of "excessive" investor expectations for future iPhone models. This company-specific weakness diverges from the broader tech sector's gains, which are on track to lift the Nasdaq 1.6% for the week. On the macroeconomic front, a federal government shutdown, now in its third day, is elevating economic uncertainty by furloughing an estimated 750,000 workers daily and preventing the release of the September nonfarm payrolls report. The data blackout presents a complex scenario: while it limits the Federal Reserve's visibility ahead of its October interest rate decision, it also removes a potential near-term downside catalyst for stocks, as the previous two payroll reports were notably weak.
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