Gold prices near 3-week high; could reach $4,700/oz - UBS
Investing.com - U.S. stocks mostly slipped lower Tuesday, consolidating after a rebound in technology shares amid optimism over an end to the long-running government shutdown.
At 09:35 ET (14:35 GMT), the Dow Jones Industrial Average rose 80 points, or 0.2%, while S&P 500 index slipped 10 points, or 0.2%, and the NASDAQ Composite fell 102 points, or 0.4%.
Government set to reopen
The U.S. Senate voted to send a spending package which would end the longest-ever federal government shutdown to the House of Representatives, as eight Democrats provided the support needed to break the impasse.
Republicans, who control both the Senate and the House, are anticipated to continue backing the bill, and then it will be sen to the White House to be signed into law by President Donald Trump.
The bill could mark an end to the longest shutdown in U.S. history, which was seen causing widespread disruption in the country, and is also expected to have weighed on gross domestic product in the fourth quarter.
"The shutdown resolution (even though the government won’t actually reopen for several more days) is clearly a positive, and many feel it gives a bright green light for the much-anticipated year-end rally to finally commence," said analysts at Vital Knowledge, in a note.
Expectations of an end to the shutdown helped the main averages on Wall Street ended higher in the prior session, boosted by sharp gains in big artificial intelligence names, chiefly Nvidia (NASDAQ:NVDA) and Palantir (NASDAQ:PLTR).
UBS sees earnings driving S&P 500 higher
There are still some corporate results earnings emerging this week, although the bulk of what has been a generally positive third-quarter earnings season is now behind us.
In fact, UBS expects the S&P 500 index to climb to 7,500 next year, from the current 5,830 level, driven by “around 14% earnings growth,” nearly half of which will come from technology stocks.
In a research note on Monday, UBS analysts said the global economy “is poised to accelerate in 2026” as confidence improves and fiscal stimulus gains traction.
But over the next few months, the bank believes the U.S. and other advanced economies must “navigate a soft patch, with tariffs still feeding through to prices and exports.”
UBS predicts the U.S. will lead global equity performance, forecasting roughly 10% returns for the market next year. UBS added that the S&P 500’s gains will come mainly from earnings rather than valuation expansion.
CoreWeave hit by partner delay
CoreWeave (NASDAQ:CRWV) stock fell after the Nvidia-backed AI cloud services firm flagged a delay at a third-party data center partner.
The update overshadowed otherwise solid third-quarter results from the group, which has recently moved to fortify its position in the AI boom through a series of multibillion-dollar deals with major tech industry names like ChatGPT maker OpenAI and Facebook owner Meta Platforms (NASDAQ:META).
Elsewhere, Paramount Skydance (NASDAQ:PSKY) stock rose after the entertainment company said it is looking to cut an additional $1 billion in savings after first outlining $2 billion when it completed its merger in August.
Rocket Lab (NASDAQ:RKLB) stock jumped higher after the space company reported a smaller third-quarter loss than expected.
TheRealReal (NASDAQ:REAL)stock surged 15% after the online marketplace raised its full-year revenue guidance and reported third-quarter revenue that beat expectations.
Crude edges higher
Oil prices rose, helped by the enthusiasm surrounding the likely reopening of the U.S. government.
Brent futures gained 1.1% to $64.78 a barrel, and U.S. West Texas Intermediate crude futures rose 1.2% to $60.85 a barrel.
However, traders remained on edge over a potential supply glut in the coming year.
Earlier this month, the Organization of Petroleum Exporting Countries and allies, known as OPEC+, agreed to increase December output targets by 137,000 barrels per day, the same as for October and November. It also agreed to a pause in increases in the first quarter of next year.
Ayushman Ojha contributed to this article