AI Collaboration Drives Nasdaq Gains Amid US Economic Rebound Outlook

The U.S. government shutdown in 2025 has not impeded stock market gains, with major indices like the Nasdaq 100 reaching record highs due to strong investor interest, especially in technology and AI sectors, highlighted by OpenAI's valuation at $500 billion. Despite the shutdown limiting economic data flow, the earnings season is starting, and upcoming events such as the FOMC Minutes release and consumer sentiment data are expected to influence markets including US equities, gold, and USDJPY. The U.S. economy is facing a temporary slowdown with GDP growth forecasted at 1.8% in 2025, but a rebound to 2.0% is expected in 2026 due to fiscal and monetary stimulus. Equity valuations remain high, necessitating earnings per share growth to sustain gains, while challenges like record debt and affordability issues persist. Regulatory developments are also underway with the SEC under new leadership focusing on innovation and capital formation, including proposing new rules for crypto assets and considering changes to foreign private issuer eligibility. These economic and regulatory dynamics underscore a market environment marked by record-breaking performance yet tempered by cautious outlooks and evolving policy frameworks.