Fiscal Policy: The Longest Shutdown Ends
The U.S. government’s reopening, after a record 43-day shutdown, dominated the day’s headlines. President Donald Trump signed a temporary funding bill late Wednesday, ending weeks of stalled operations across federal agencies. The resolution immediately restored back pay for federal workers and reopened key departments that had been shuttered since early October. While the move offered relief to millions of Americans, economists noted that the prolonged disruption had cost the U.S. economy billions in lost productivity and delayed services.
Markets initially welcomed the clarity; however, the rebound proved short-lived as investors recalibrated expectations around future fiscal negotiations. Analysts warned that without a longer-term budget solution, fiscal uncertainty could resurface by year-end.
Monetary Policy: Fed Under Scrutiny Amid Rate-Cut Speculation
Attention quickly turned to the Federal Reserve, where discussions intensified over potential interest rate cuts to cushion the economy from the dual headwinds of political disruption and market volatility. Policymakers face mounting political oversight and pressure to ease monetary conditions, though inflation concerns continue to complicate the outlook. The central bank’s next meeting looms large as investors weigh whether the Fed will prioritize stability or restraint.
Futures markets reflected a growing consensus that the Fed may deliver a rate cut in December, with investors increasingly factoring in at least two reductions by mid-2026.
Stock Market Trend: Major Sell-Off Erodes Investor Confidence
The relief rally following the government’s reopening quickly reversed into a market-wide sell-off. The Dow Jones Industrial Average, S&P 500, and Nasdaq Composite all tumbled sharply as hedge funds and institutional investors became heavy net sellers of equities and ETFs. The sell-off erased recent gains, wiping out nearly $50 billion in net worth among the world’s top five billionaires in a single session.
Analysts attributed the decline to profit-taking, weak earnings momentum, and concerns over liquidity stress. Hedge fund positioning data showed widespread de-risking across growth and cyclical sectors, underscoring the market’s fragile sentiment despite the end of the shutdown.
Influential Investors: Michael Burry Exits the Stage
In a move that drew widespread attention, Michael Burry—famed for his contrarian predictions—officially deregistered and liquidated Scion Asset Management. SEC filings confirmed the closure, marking a symbolic exit for one of the most closely followed independent investors. Analysts interpreted the move as a signal of Burry’s increasingly cautious stance amid global market instability and shifting macro dynamics.
Technology & Venture Capital: Thinking Machines Eyes $50 Billion Valuation
In the private markets, Mira Murati’s AI startup, Thinking Machines, is reportedly in advanced talks to raise capital at a valuation near $50 billion. The company’s discussions reflect continued investor enthusiasm for artificial intelligence, even as public tech valuations waver. Industry observers note that strong demand for foundational AI technologies remains a rare bright spot in an otherwise cautious investment landscape.
Commodities & Global Policy: Gold Surges, COP30 Shifts Focus
Gold prices surged past $4,200 per ounce as investors sought safe havens amid political and market uncertainty. Simultaneously, COP30 underscored a growing international consensus toward phasing out fossil fuels, intensifying debate over the pace of global energy transition. These developments added new layers to the geopolitical and commodity-market narratives shaping global capital flows.