Zhong Guo Ji Jin Bao·2025-10-01 23:35Market Performance - Despite initial declines due to government shutdown concerns, U.S. stock indices reversed course and closed higher, with the Dow Jones and S&P 500 showing gains [1] - The healthcare sector saw an uptick driven by optimism from a Pfizer-White House agreement, contributing to a narrowing of market losses [2] Economic Indicators - U.S. Treasury yields fell across the board, with the 10-year yield dropping to 4.11%, while the S&P 500 fluctuated between slight to moderate declines [3] - The ADP report indicated an unexpected decline in U.S. employment for September, aligning with other data suggesting a slowdown in the labor market, leading traders to increase bets on two more rate cuts this year [5] Government Shutdown Impact - Investors are concerned about the duration of the government shutdown and its potential impact on critical economic data needed for Federal Reserve decisions [6] - Historical context suggests that government shutdowns typically do not last long and have limited macroeconomic impact unless they lead to significant layoffs or market disruptions [6] Semiconductor Sector - Semiconductor stocks experienced significant gains, with Micron Technology rising nearly 6% and TSMC increasing by 2%, reaching a historical high [6] - Price hikes announced by NAND Flash manufacturers since September have sparked bullish expectations for the storage industry, with Morgan Stanley predicting the price increase cycle could extend until 2026 [6] Federal Reserve Independence - The U.S. Supreme Court temporarily blocked Trump's attempt to dismiss Federal Reserve Governor Lisa Cook, marking a victory for the Fed's independence [8] - The case is significant as it underscores the importance of the Fed's autonomy in maintaining economic stability, with the next Fed meeting scheduled for late October to discuss potential rate cuts [8][9]