Shutdown Ends, but Missing Data Clouds Fed Outlook as Cisco Surges on AI Earnings Beat
News Summary
The 43-day U.S. government shutdown, the longest in history, has officially ended after President Trump signed a funding deal through January 30, 2026. However, the resolution is overshadowed by the White House's confirmation that key October jobs and inflation data “will likely never” be released, creating a critical information gap for the Federal Reserve ahead of its December policy meeting. This data blackout injects significant uncertainty into the market, as evidenced by slightly lower U.S. stock futures. Separately, Cisco Systems experienced a 7.5% premarket surge following robust fiscal Q1 earnings, driven by strong AI infrastructure demand and a multi-year networking refresh cycle. The company reported revenue of $14.9 billion and adjusted earnings of $1.00 per share, both exceeding estimates, with Q2 guidance also surpassing expectations. Meanwhile, banking stocks continue to outperform, with major names like Goldman Sachs moving higher, though concerns around commercial real estate exposure and cautious loan issuance persist. Markets are closely monitoring Fed officials' remarks for policy direction clues.
Background
This news, published on November 13, 2025, occurs during President Trump's administration following his re-election in 2024. The U.S. government has just emerged from its longest-ever 43-day shutdown, indicative of persistent fiscal and policy disagreements in Washington. The resolution provides only short-term funding and fails to address deeper structural issues like Affordable Care Act subsidies, suggesting potential future political stalemates. Concurrently, the global economy is in a transformative phase, moving from post-pandemic recovery to a boom in AI technology. The surge in AI infrastructure demand is reshaping the tech sector, driving investment in advanced hardware and networking solutions. The Federal Reserve faces the challenge of setting monetary policy with incomplete economic data, particularly with critical inflation and jobs figures missing, which introduces greater uncertainty in its ability to respond to potential economic shifts.
In-Depth AI Insights
What do the missing government data imply for the Fed's monetary policy and market transparency? - The permanent loss of crucial economic data, particularly on jobs and inflation, severely hampers the Federal Reserve's ability to make data-driven decisions. This could lead to a more cautious or