SPY, QQQ React to Weak Jobs Data; Nvidia Falls after SoftBank Sale
The S&P 500 ETF (SPY) and the Nasdaq 100 ETF (QQQ) experienced varying outcomes amid recent economic data and stock movements. While SPY managed to recover from early losses and closed positively, QQQ struggled, ending lower.
Market Reactions to Weak Economic Data
Nvidia (NVDA), a key player in both ETFs, suffered a 2.91% decline following the announcement of SoftBank’s sale of its entire $5.83 billion stake. Nvidia constitutes approximately 7.96% of SPY and 10.15% of QQQ. The sale raised concerns about an AI bubble, although SoftBank cited diversification as the reason.
Government Shutdown and Its Impact
The U.S. government shutdown has now lasted 42 days, causing disruptions in air travel and the Supplemental Nutrition Assistance Program (SNAP). Recently, the Senate approved a bill to fund the government until January 30. This legislation is anticipated to pass through the House, where a vote is expected by Wednesday. President Trump has expressed support for the bill, which Senate Majority Leader John Thune described as a significant step towards ending a historic shutdown.
Labor Market Weakness Signals
As the shutdown continues, the Bureau of Labor Statistics (BLS) has suspended its labor market reports. In the absence of official data, private sector signals have emerged. ADP reported a decline of 11,250 private payrolls per week for the four weeks ending October 25. Moreover, Goldman Sachs estimates a drop of 50,000 in nonfarm payrolls for October.
- ADP reported private payrolls fell by 11,250 weekly.
- Goldman Sachs estimates a decrease of 50,000 nonfarm payrolls.
- Job openings and labor market tightness decreased, indicating ongoing labor market weakness.
Supreme Court and Tariffs
The U.S. Supreme Court has yet to make a ruling on the legality of tariffs imposed by Trump under the International Emergency Economic Powers Act (IEEPA). Trump warned of a potential “unwind” worth over $3 trillion if the ruling goes against him. Goldman Sachs predicts the court’s decision will likely come in December or January 2026, possibly resulting in a refund bill between $115 and $145 billion if Trump loses.
Closing Market Performance
Despite the challenges, the S&P 500 (SPX) ended with a 0.21% gain, while the Nasdaq 100 (NDX) fell by 0.31%. Investors are closely monitoring these developments and their implications for future market trends.
