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Major market averages opened lower on Monday following a second-straight weekly gain for the broader market.
Early on and the Nasdaq Composite (COMP.IND) was -0.4%, the S&P 500 (SP500) was -0.3%, and the Dow (DJI) was -0.1%.
The 10-year Treasury yield (US10Y) gained 2 basis points to 4.67% and the 2-year yield (US2Y) was up 1 basis point to 5.07%.
“The economic outlook is more or less well behaved,” UBS chief economist Paul Donovan wrote. “Economic soft (or softish) landings seem on track, with slowing growth and inflation pressures moderating a little faster than expected.”
“Politicians in power struggle to capitalize on the economics because perception and reality differ,” he said. “Real wages have been bad on both sides of the Atlantic, and while middle-income households have savings, they tend to view those differently from their monthly spending power.”
“A US government shutdown looms, again. One of the credit rating agencies (it does not matter which) put the US credit outlook on negative watch last week. This generates media headlines and political noise, but is unlikely to matter much to markets. The shutdown deadline is 17 November, with the House of Representatives to vote on a proposal from Speaker Johnson on Tuesday.”