The S&P 500 ETF (SPY) and the Nasdaq 100 ETF (QQQ) secured recoveries from their early morning lows, although only the former was able to close in the green.
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Nvidia (NVDA), which is the largest holding in both SPY and QQQ at 7.96% and 10.15%, respectively, closed with a 2.91% loss after SoftBank (SFTBY) disclosed that it had sold its entire $5.83 billion stake in the company. SoftBank’s sale further stirred fears of an AI bubble, although the investment firm noted that the sale was for diversification purposes.
The longest government shutdown, now in its 42nd day, could be nearing an end amid widespread air travel and Supplemental Nutrition Assistance Program (SNAP) benefit disruptions. With the Senate approving a bill that would fund the government until January 30, the measure now heads to the House, which is expected to vote on it by Wednesday. The House is likely the last hurdle in the way, as President Trump has already expressed his support for the bill.
“This has been a very long road, quite literally the longest shutdown in history,” said Senate Majority Leader John Thune. “I am very, very happy to be able to say that we are coming to the end.”
The Bureau of Labor Statistics (BLS) has not published labor market data during the shutdown, placing further emphasis on data from the private sector. Today, payroll processor ADP reported that private payrolls fell by an average of 11,250 per week for the four weeks ended October 25.
On top of that, economists at Goldman Sachs (GS) estimate that nonfarm payrolls fell by 50,000 in October. “Our job openings and labor market tightness trackers continued to decline, and our newly constructed layoff tracker also revealed an increase in layoffs over the past few months,” wrote the bank in a note. These two data points signal continued weakness in the labor market.
Following oral arguments last week, the Supreme Court has yet to release a decision on the legality of Trump’s tariffs under the International Emergency Economic Powers Act (IEEPA). However, Trump warned that the U.S. could experience an “unwind” worth over $3 trillion if the court rules against him.
“The ‘unwind’ in the event of a negative decision on Tariffs, would be, including investments made, to be made, and return of funds, in excess of 3 Trillion Dollars,” Trump said in a Truth Social post. Goldman believes the SCOTUS will announce a decision in December or January 2026. Furthermore, the bank expects the U.S. to be responsible for a refund bill between $115 and $145 billion if Trump loses the case.
The S&P 500 (SPX) closed with a 0.21% gain, while the Nasdaq 100 (NDX) fell by 0.31%.
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