Stocks Rebound as US Shutdown Fears Ease; Tariff Risks Persist
- Asian stocks and US equity futures gained Friday as expectations of a US government shutdown avoided kept sentiment positive.
- Japanese and Australian stocks gained, while China’s CSI 300 hit an all-time year-to-date high on the expectation of more policy support.
- S&P 500 and Nasdaq 100 futures gained following Thursday’s steep losses, which placed both indexes in correction territory.
- US Treasuries cut their gains in the previous session, as the dollar extended its three-day gain. Investors remained cautious as President Donald Trump intensified trade tensions by threatening a 200% duty on European booze and refusing to dial back new steel and aluminum tariffs.
- Market uncertainty has redirected investor focus toward European and Chinese stocks, as analysts see Asian growth opportunities.
- Conversely, the Federal Reserve’s model for recession suggested a near 30% likelihood of a US recession, fueling further fears that trade policy will temper economic growth.
- Elsewhere, oil increased following the US’s imposition of tightened sanctions, and Bitcoin recovered following Thursday’s decline.

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Stocks Rebound, Gold Hits Record Highs!
- Stock Futures Rally – S&P 500 futures jumped 0.9%, Nasdaq 100 gained 1.2%, and Dow futures rose 0.6%, signaling a market rebound after the recent sell-off.
- US Government Shutdown Averted? – A stopgap funding bill is set to pass in Congress, easing one of the key uncertainties weighing on investors.
- Gold Surges Past $3,000! – Haven demand and central bank buying push gold to new record highs, up 14% YTD. Some analysts predict $3,300 by year-end.
- Tech Stocks Recovering? – Nvidia led premarket gains among the ‘Magnificent Seven,’ but broader volatility persists. Bank of America suggests the S&P 500 at 5,300 could be a key buying opportunity.
- Crypto Comeback? – Bitcoin soared 3.7% to $83,271, while Ethereum rose 3.4%, showing renewed strength in digital assets.
- What’s Next? The short-term rebound in equities reflects easing concerns over the U.S. budget situation, but market risks remain. Persistent inflation concerns, policy uncertainties, and volatility in tech stocks continue to shape investor sentiment. The coming weeks will be key in determining whether this recovery is sustainable or a temporary relief rally.