U.S. stocks closed lower on Tuesday (October 7) as investors, deprived of economic data resulting from the shuttered government, looked to secondary indicators and remarks from U.S. Federal Reserve officials for clues regarding economic weakness and monetary policy.
00:00U.S. stocks closed lower on Tuesday as investors are deprived of economic data resulting from the shuttered government.
00:08Look to secondary indicators and remarks from U.S. Federal Reserve officials for clues regarding economic weakness and monetary policy.
00:16All three indexes ended in negative territory after a consumer expectations survey from the New York Federal Reserve showed deteriorating future expectations and rising inflation projections.
00:30The report garnered increased scrutiny amid a federal data blockout resulting from a partisan congressional impasse that extended the government shutdown to its seventh day.
00:40Today's the market's down a little bit. I mean, you've got a couple of things going on. You obviously have the continuing shutdown of the government.
00:48There was some news today that maybe people wouldn't be able to get their VAC pay.
00:54So and there's some worry about, you know, if this continues to drag on its implications for the economy.
00:59The other big news of the day was there was a leaked internal document from Oracle saying that they're actually potentially losing up to $100 million on renting some of these NVIDIA chips.
01:10And so that's putting a little bit of a damper on some of the AI trade, which has become a big chunk of at least the S&P and NASDAQ.
01:18Investors have had to rely on secondary, independently produced data, along with remarks from monetary policymakers, to gauge the likelihood that the Federal Reserve will implement its second rate cut of the year at this month's policy meeting.
01:33Economically sensitive sectors, including home building, housing, airlines and transport underperformed the broader market.
01:41Fed Governor Stephen Miran stated his case for continued rate cuts, stressing the risk of keeping policy too restrictive.
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