US government shutdown update: Senate Democrats push funding, markets rise; chip prices increase.

U.S. Government Shutdown Shows Signs of Resolution

Senate Democrats Push Funding Proposal

On November 8, the U.S. Senate held its first weekend meeting since the federal government shutdown, with both parties debating healthcare policy within the funding bill. Senate Majority Leader John Thune announced that discussions would continue on November 9, aiming to reach an agreement to end the shutdown, although analysts believe Democrats may not easily compromise. Thune indicated that a potential agreement is "gradually being reached," but emphasized that it is not guaranteed, as senators need time to review the proposal.

Economic Impact of the Shutdown

As the shutdown reached its 40th day, White House economic advisor Kevin Hassett stated that Goldman Sachs estimates the shutdown has reduced U.S. GDP by 1.5%. If it continues, particularly affecting the upcoming holiday shopping season due to reduced flights, the fourth quarter GDP could even turn negative. Treasury Secretary Janet Yellen echoed this sentiment, warning that prolonged shutdowns could halve economic growth for the quarter.

Federal Reserve's Stance on Interest Rates

Federal Reserve Governor Stephen Miran suggested that the surge in demand for dollar-pegged stablecoins could lower U.S. interest rates. He noted that if this trend continues, the Fed may need to reduce its policy rates to avoid inadvertently slowing the economy. Miran's comments add a new perspective to the necessity of easing policies.

Consumer Confidence Hits Three-Year Low

Due to the government shutdown and high prices impacting personal finances, the U.S. consumer confidence index fell to its lowest level in over three years, recording a preliminary value of 50.3 for November, down from 53.6 the previous month.

EU Plans to Ease AI Regulations

Under pressure from tech giants and the U.S. government, the European Commission is planning to suspend certain provisions of its AI legislation. A decision on a "simplified proposal" is expected on November 19.

Major Market Movements

In the stock market, major tech stocks saw declines, with Nvidia (NVDA) dropping nearly 5% before recovering, while Tesla (TSLA) fell close to 4%. The Nasdaq China Golden Dragon Index also decreased by 0.95%.

Notable Corporate Developments

• Pfizer successfully acquired Metsera for $10 billion, outbidding Novo Nordisk, marking a significant move in the weight-loss drug market.

• Airbnb reported a 10% year-over-year revenue increase for Q3 2025, with plans to accelerate AI integration into its services.

• Oracle secured approximately $18 billion in loans from a consortium of banks for data center projects.

Conclusion

The ongoing discussions in the Senate and the economic implications of the government shutdown are critical to watch as they unfold. The Federal Reserve's cautious approach to interest rates and the evolving landscape of corporate strategies will also play significant roles in shaping the economic outlook.