Bonds & Stocks
Contracts on the S&P 500 and Nasdaq 100 were little changed and well off early lows after both indexes saw their steepest declines in nearly a month amid worries over stretched tech valuations. The Russell 2000 gauge of small-cap stocks was set for its first gain of the week. Treasuries dipped after ADP Research data showed employment at US companies increased in October, signaling some stabilization in the job market after two straight months of declines. Yields rose across the curve, with the rate on 10-year notes two basis points higher at 4.11%. Meanwhile, the Treasury indicated it’s not looking to boost sales of notes and bonds until well into next year.
Economy
The US government shutdown has become the longest in history, and with no sign of a resolution soon its economic toll is deepening. Now in its 36th day, the shutdown has surpassed the previous record set in early 2019 during President Donald Trump’s first term. Every week that passes costs the economy anywhere from $10 billion to $30 billion, based on analysts’ estimates, with several landing in the $15 billion range.
World
China announced it will remove retaliatory tariffs on some US farm products and lift export controls on an array of American firms, after Washington halved its fentanyl-related levies on Chinese goods. The country’s Finance Ministry confirmed in a Wednesday notice it would end tariffs imposed March 4 on soybeans and other US agricultural products including corn, wheat, sorghum and chicken. That move — to take effect Nov. 10 — was previously flagged in a White House fact sheet.