1. Investors fear AI spending could lead to an unsustainable bubble. 2. Reopening the government is historically bullish for stocks. 3. Rate cut expectations for December are fading significantly. 4. The tech sector is experiencing increasing volatility amid bubble concerns. 5. Historical data suggests S&P 500 could rise post-shutdown.
Concerns over an AI bubble and fading rate cut expectations generally weigh on technology stocks. Given the S&P 500's significant allocation to tech, these dynamics are likely to push the index down.
Immediate investor sentiment, rate cut expectations, and tech sector performance heavily influence S&P 500 movements.
The effects of investor sentiment and rate cut expectations typically manifest in stock prices within a few weeks, especially during volatile periods.