Market Turbulence: Post-Shutdown Economic Data Gaps Stir Investor Concerns

Investors face uncertainty after the U.S. government shutdown, which has caused gaps in key economic data. The absence of data may delay Federal Reserve rate cuts, affecting stock markets globally. Nasdaq has already seen significant selloffs, and investor confidence is shaky due to missing economic indicators and hesitant policymakers.

The recent end of the U.S. government shutdown has left investors facing new uncertainties, as significant gaps in economic data could potentially delay Federal Reserve rate cuts. This has, in turn, cast a shadow over stock markets, including a notable selloff in the Nasdaq, which is down about 5% from its October peak.

Global markets from Tokyo to London have reacted negatively, with U.S. stock futures indicating further declines. Concerns arise from missing information on futures positioning, crop estimates, employment rates, and price figures, compounded by the 43-day shutdown hiatus in data collection.

Key economic reports face publication delays, while Federal Reserve Chair Jerome Powell has likened the situation to 'driving in the fog,' suggesting a pause on rate cuts. This economic ambiguity heightens market volatility, particularly in technology sectors, with significant stock drops in companies like Nvidia.

(With inputs from agencies.)