US OPEN: Market Calm Despite Uncertainty

The US government shutdown, the first in seven years, has caused some concern, but the market reaction remains moderate. Although some federal agencies have halted operations and payments to certain employees have been suspended, investors have not succumbed to panic. The markets have already priced in the risks associated with this deadlock, which is why observed declines are relatively small and do not resemble a sharp sell-off.

However, a significant factor remains the lack of publication of key macroeconomic data, such as the weekly employment report (NFP), which introduces additional uncertainty and limits the market’s ability to accurately assess the state of the economy. Nevertheless, most market participants assume that the budget impasse will have a limited, short-term impact on the economy and expect a swift agreement between the parties.

Political tensions resulting from the rivalry between Democrats and Republicans, as well as the upcoming 2026 elections, remain a risk factor, but at this moment Wall Street is primarily focused on economic data and Fed decisions. The Federal Reserve, taking into account increased uncertainty, will likely be more cautious regarding further interest rate hikes.

Although the political situation in Washington remains unstable, financial markets seem prepared for such scenarios and do not currently foresee sharp turmoil. The moderate calm among investors suggests that the current government shutdown has largely been priced in, and the potential negative effects on the economy will be limited and short-lived.

US500 (H1 Interval)

S&P 500 index futures (US500) are rising during morning trading despite ongoing disruptions related to the US government shutdown. The political deadlock in Washington and the suspension of some federal institutions’ operations have not triggered a strong market reaction, suggesting that investors perceive the situation as temporary and with limited economic impact.

Source: xStation5

Company News:

IBM (IBM.US) and AMD (AMD.US) have entered into a strategic partnership to deliver advanced AI infrastructure for Zyphra, a company specializing in open-source software and AI research. Zyphra, based in San Francisco, develops open-source AI solutions by advancing sophisticated AI models and technologies. This agreement will provide Zyphra access to IBM’s powerful cloud computing resources, enabling the development and training of large-scale, cutting-edge AI models. The collaboration marks an important step in the advancement of generative AI technologies and demonstrates how major tech firms are joining forces to support innovation in this rapidly evolving field. Zyphra, which recently closed a $1 billion funding round, plans to use these resources to further develop breakthrough AI solutions.

Fortress Biotech (FBIO.US) is losing value during Wednesday’s session, dropping about 34% after the US Food and Drug Administration (FDA) declined to approve its drug CUTX-101 for the rare Menkes disease. This negative news triggered strong selling pressure, impacting the company’s stock price.

Nike’s (NKE.US) shares are up over 3% during Wednesday’s session after reporting first-quarter results that exceeded average analyst forecasts. This confirms the company’s effective focus on key sports disciplines like running and basketball, which is starting to yield tangible results. The biggest positive driver was wholesale revenue growth, supported by partnerships with Amazon and Foot Locker. Additionally, Nike saw a clear improvement in running shoe sales. These positive results were met with enthusiastic investor response, leading to increased demand for the company’s shares.

Marvell Technology’s (MRVL.US) shares are currently down about 3% following a downgrade. Analysts highlight that Marvell’s data center business has nearly tripled over the past two years, driven by successes in deploying custom XPU processors and a strong portfolio of networking chips supporting AI. Nevertheless, limited market visibility and rising competition in the custom XPU processor segment—especially after the recent rapid rise in the stock price—cause analysts to adopt a more cautious stance toward the company.