Stocks Fall on Higher Bond Yields and Weakness in Chipmakers

Economic Impact of Government Shutdown - The US government shutdown is in its second week, causing delays in key economic reports, including unemployment claims and inflation data [1] - Bloomberg Economics estimates that 640,000 federal workers will be furloughed, potentially increasing jobless claims and raising the unemployment rate to 4.7% [1] Market Reactions and Fed Comments - Dovish comments from New York Fed President John Williams support bonds and stocks, indicating a willingness to back lower rates if economic conditions evolve as expected [2] - Stock indexes have rallied to record highs due to optimism in the AI sector and expectations of additional Fed easing [2] Stock Performance - The S&P 500 Index is down -0.24%, while the Dow Jones and Nasdaq indexes also show declines [4] - Delta Air Lines has raised its full-year adjusted EPS forecast, leading to a stock increase of more than +5% [3][16] - Costco Wholesale reported stronger-than-expected September sales, resulting in a stock increase of more than +2% [3][19] Corporate Earnings Expectations - Over 22% of S&P 500 companies have provided guidance for Q3 earnings that are expected to exceed analysts' expectations, the highest in a year [7] - Q3 profits are projected to rise by +7.2%, the smallest increase in two years, while sales growth is expected to slow to +5.9% [7] Safe-Haven Assets - The ongoing government shutdown and political uncertainties are driving investors towards safe-haven assets like gold and Bitcoin, with gold prices soaring above $4,000 an ounce [5] International Market Developments - Overseas stock markets are mixed, with the Euro Stoxx 50 down -0.21% and China's Shanghai Composite closing up +1.32% after reopening [8]