Global Stocks Fall Despite End of US Government Shutdown

Global stock markets fell sharply on Thursday, despite hopes that the end of the record-long US government shutdown would reinvigorate trading. Investors had anticipated a boost after President Donald Trump signed a spending bill to end the 43-day closure, which had shuttered key services and delayed the release of data essential for assessing the health of the world’s largest economy.

However, major exchanges in Europe and on Wall Street fell across the board, following only modest gains in Asia.

"While it's unclear whether the shutdown was ever a real drag on equities—given that stocks largely rallied through it—the question now is whether the market's recent exuberance has run its course," said Fawad Razaqzada, market analyst at StoneX.

London’s market was weighed down after official data showed the UK economy slowed in the third quarter, adding further pressure on the Labour government ahead of its annual budget later this month.

‘Overstretched’ Tech Sector

Investors are also preparing for a series of long-awaited economic reports that were delayed due to the closure of vital services in the United States. These data releases are particularly important as the Federal Reserve considers whether to cut interest rates further next month.

US National Economic Council director Kevin Hassett, however, warned that figures for October employment are likely to be incomplete because statistics agencies were unable to collect the necessary data during the shutdown.

Meanwhile, concerns have grown that this year’s AI-driven market rally may have inflated valuations in the technology sector, potentially creating a bubble that could burst at any time.

"Big Tech valuations and big spending will remain front of mind for investors until companies like Microsoft can demonstrate that AI-boosted software sales have surged—and that hasn’t happened yet," said Ipek Ozkardeskaya, senior analyst at Swissquote Bank.

Razaqzada described technology shares as "increasingly overvalued and overstretched," though he cautioned that it is "far too early to call a top in this cycle," noting that investor enthusiasm for artificial intelligence remains strong.

Oil prices rose slightly after plunging around four percent on Wednesday, following OPEC’s monthly crude market report, which forecast an oversupply in the third quarter. Easing tensions in the Middle East and increased output by OPEC and other major producers have kept pressure on the commodity’s price.

Key Figures as of Around 21:35 GMT

New York – Dow: DOWN 1.7% at 47,457.22 (close)

New York – S&P 500: DOWN 1.7% at 6,737.49 (close)

New York – Nasdaq Composite: DOWN 2.3% at 22,870.36 (close)

London – FTSE 100: DOWN 1.0% at 9,807.68 (close)

Paris – CAC 40: DOWN 0.1% at 8,232.49 (close)

Frankfurt – DAX: DOWN 1.4% at 24,042.91 (close)

Tokyo – Nikkei 225: UP 0.4% at 51,281.83 (close)

Hong Kong – Hang Seng Index: UP 0.6% at 27,073.03 (close)

Shanghai – Composite: UP 0.7% at 4,029.50 (close)

Currency and Oil Movements

Dollar/Yen: DOWN at 154.53 yen from 154.80 yen on Wednesday

Euro/Dollar: UP at $1.1634 from $1.1587

Pound/Dollar: UP at $1.3189 from $1.3129

Euro/Pound: DOWN at 88.21p from 88.25p

Brent North Sea Crude: UP 0.5% at $63.01 per barrel

West Texas Intermediate: UP 0.3% at $58.69 per barrel

Global investors remain cautious, closely monitoring technology sector valuations, economic data releases, and geopolitical developments, even as the US government shutdown has officially ended.