Key Points
- U.S. stocks fell on Thursday, with the tech-heavy NASDAQ leading the decline.
- The longest government shutdown in U.S. history has ended after President Trump signed a funding bill.
- The end of the shutdown may not lead to a full recovery of economic data, which could affect the Federal Reserve’s decisions.
- Cisco raised its annual guidance, providing a bright spot in the tech sector.
U.S. stocks moved lower on Thursday as a rotation out of expensive technology stocks continued, even after the longest government shutdown in U.S. history finally ended.
As of 09:50 ET, the Dow Jones Industrial Average had slipped 0.12%, falling from its record close in the previous session. The S&P 500 dropped 0.66%, and the tech-heavy NASDAQ Composite underperformed, falling 0.82%.
Late on Wednesday, President Donald Trump signed a bill to fund the government and end the shutdown. The House of Representatives approved the spending package, keeping the government funded through January 30. This ends a 43-day period that caused widespread disruptions, including thousands of flight cancellations, which could hurt economic growth.
The end of the shutdown should also mean the return of important economic data releases. However, Trump administration officials have warned that some key employment and inflation data for October might never be published. This could leave the Federal Reserve without crucial information ahead of its next interest rate decision in December.
While the tech sector has been under pressure, there was some good news. Cisco Systems raised its annual guidance, sending its stock price soaring. The networking gear provider now expects higher revenue and earnings for fiscal 2026, betting on a surge in demand for equipment needed to support the AI boom.
In other company news, Walt Disney stock dropped after the entertainment giant reported a fall in revenue, hurt by a weak performance from its latest movie releases. Starbucks stock also slipped as the union representing its workers launched a strike on Red Cup Day, one of the coffee chain’s biggest sales days of the year.
In the commodity markets, oil prices bounced back after big losses in the previous session. Brent futures gained 0.9% to $63.28 a barrel, and U.S. West Texas Intermediate crude futures rose 0.9% to $59.01 a barrel. Both contracts had dropped about 4% on Wednesday after a report showed a rise in U.S. crude inventories.
