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Stocks Pull Back After Record Highs as Shutdown Relief Fades

Inflation jitters stalled the relief rally that followed the stopgap ending the 43‑day U.S. shutdown.

Overview

  • Germany’s DAX fell 1.4% to 24,041 on Thursday after a sharp selloff and is indicated slightly higher near 24,086 on Friday, narrowing focus to holding the 24,000 level.
  • The Dow dropped 1.6% to 47,457, the S&P 500 lost 1.7%, and the Nasdaq slid 2.3% on Thursday as technology shares retreated and price pressures worried investors.
  • The pullback followed a brief surge that saw the Dow set a record close at 48,254 and the DAX approach its peak after the president signed a stopgap that ended the 43‑day shutdown but only funds government through January.
  • Oil prices rebounded, with Brent up about 1.6% to $64.02 after a reported Ukrainian drone strike on Russia’s Novorossiysk port, following earlier declines tied to U.S. inventory builds and OPEC’s 2026 surplus outlook.
  • Earnings updates shaped stock moves: Deutsche Telekom outlined a record €1.00 2025 dividend and up to €2 billion in 2026 buybacks, Cisco beat estimates with $14.9 billion in revenue and $1.00 EPS, and Siemens Energy raised midterm targets and reinstated a dividend while Allianz lifted its 2025 profit outlook.