Sou Hu Cai Jing·2025-10-01 16:08Market Overview - US stock market experienced a significant reversal, opening lower but closing higher despite concerns over a government shutdown [1] - The Dow Jones and S&P 500 indices showed positive movement, supported by strong US Treasury performance and optimism in the healthcare sector due to a deal between Pfizer and the White House [1][5] Economic Indicators - US Treasury yields fell across the board, with the 10-year yield dropping to 4.11% [5] - The ADP report indicated an unexpected decline in US employment for September, aligning with other data suggesting a slowdown in the labor market [7] - Manufacturing activity in the US contracted for the seventh consecutive month, although the market reaction was muted [7] Government Shutdown Concerns - The ongoing government shutdown poses risks to critical economic data, potentially delaying reports such as the non-farm payrolls and CPI inflation data [6][8] - Historical context suggests that government shutdowns typically have limited macroeconomic impact unless prolonged [8] Sector Performance - Semiconductor stocks saw significant gains, with Micron Technology rising nearly 6% and TSMC reaching a new all-time high [8] - Price increases in NAND Flash products by manufacturers like SanDisk and Micron have sparked bullish sentiment in the storage industry, with Morgan Stanley predicting a price increase cycle lasting until 2026 [8] Federal Reserve Developments - The US Supreme Court temporarily blocked Trump's attempt to dismiss Federal Reserve Governor Lisa Cook, marking a victory for the Fed's independence [10][11] - The next Federal Reserve meeting is scheduled for October 28-29, where decisions on interest rates will be made [10]