Investors breathed a sigh of relief as signs that the U.S. federal government shutdown could be ending spurred equities upward and pushed Treasury yields lower. The Dow Jones Industrial Average reached an all‑time high as the prospect of resumed government spending boosted confidence. At the same time, Treasury yields dropped on expectations of slightly easier financial process. Meanwhile, technology stocks lagged, with investors rotating into defensive sectors such as healthcare and financials.
Insights & Leverage:
- A resolution in the shutdown signals reduced economic chance — look for opportunities in cyclical stocks (industrial, monetary) that benefit from government spending.
- With note yields falling, look again at dividend‑paying equities and sectors that look cheaper on yield basis.
- Automation stocks may be under pressure (as the chart suggests) so this could be a rotation window: trimming speculative tool expansion and increasing quality/defensive holdings.
- If you trade, you might think levered financials or industrial names that respond quickly to fiscal triggers.
- For your operation of trading with £20k aiming ~£50/day, Here is a scenario where news‑driven intraday trades in financials or industrial ETFs could be set up — but uncertainty management is key since headlines can reverse.
About the Author
