Market Volatility Dominates Amid Government Shutdown Aftermath

U.S. stocks continued to decline as the market faced a wave of economic data releases post longest government shutdown. Nvidia's earnings report is set to highlight AI sector trends. With subdued global performance and uncertainties in employment data, investors remain cautious as U.S. Treasury yields dip slightly.

U.S. stocks extended their downturn, and benchmark Treasury yields dropped slightly, as investors prepared for a week of significant economic data following the record-long U.S. government shutdown. Investor focus is now on Nvidia's upcoming earnings report, a test for AI sector demand stability.

All major U.S. stock indexes dropped sharply throughout the trading session. According to Matthew Keator of Keator Group, the market continued to reflect pressure from the tech sector, especially concerning AI valuations. Concerns loom over AI's impact on future employment data, tying into broader economic considerations post-shutdown.

Global markets remained subdued, with European stocks slipping and limited appetite for risk ahead of pending U.S. labor data. Emerging markets rose slightly, while Asian shares outside Japan saw modest gains. As traders adjust to delayed reports, Treasury yields and the dollar experienced minor shifts, reflecting ongoing apprehension.

(With inputs from agencies.)