NEW YORK, New York – Democrats and Republicans were blaming each other Tuesday as the U.S. government prepared to shut down after midnight.

“When it comes to Washington, the market widely expected a shutdown to happen, so investors are largely sitting tight for now, but if this extends beyond two weeks, people will start to become more concerned,” Adam Crisafulli of Vital Knowledge told CNBC Tuesday.

Nonetheless, major stock indices across the globe advanced on Tuesday, driven by renewed confidence in the technology sector and optimistic economic data, though small-cap stocks in the U.S. bucked the trend with slight declines.

On Wall Street, the Standard and Poor’s 500 led the major benchmarks, climbing 27.25 points, or 0.41 percent, to close at a record 6,688.46.

The tech-heavy NASDAQ Composite rose 68.86 points, a gain of 0.30 percent, to finish at 22,660.01.

The Dow Jones Industrial Average also posted a solid advance, adding 81.82 points, or 0.18 percent, to settle at 46,397.89.

Analysts attributed the day’s broad-based optimism to strong earnings reports from major tech firms and signals from central banks that soothed investor concerns about the pace of future interest rate hikes. The rally in large-cap tech stocks provided the primary thrust for the major U.S. indices, even as the slight weakness in small caps suggested some caution remains in the market.

U.S. Dollar Shows Mixed Performance as Commodity-Linked Currencies Climb

The U.S. dollar traded in a mixed fashion against major rivals on Tuesday, softening against European and commodity-driven currencies but firming against traditional safe-havens as market sentiment showed cautious improvement.

The euro edged higher, with EUR/USD climbing 0.12 percent to exchange hands at 1.1740. The British pound was a stronger performer, as GBP/USD advanced 0.18 percent to 1.3450.

The most significant moves came from the commodity bloc. The Australian dollar led the pack, with AUD/USD rallying sharply by 0.61 percent to 0.6616. The New Zealand dollar also posted solid gains, with NZD/USD rising 0.36 percent to 0.5797. The Canadian dollar held steady, with USD/CAD virtually unchanged, inching up a mere 0.01 percent to 1.3914.

In a contrasting trend, the US dollar gained ground against two key safe-haven currencies. The greenback fell notably against the Japanese yen, with USD/JPY declining 0.44 percent to 147.87. It also strengthened against the Swiss franc, as USD/CHF dropped 0.15 percent to 0.7960.

Analysts suggested the currency movements pointed to a slight uptick in investor risk appetite, buoyed by stable energy prices and optimism over key economic data releases later in the week. The strength in the Aussie and Kiwi dollars, often seen as proxies for global growth, indicated a tentative return of confidence.

Meanwhile, the dollar’s pullback against the yen and franc signaled a reduced immediate demand for the safest assets, though traders remain cautious amid ongoing geopolitical tensions. Market participants are now looking ahead to upcoming inflation and employment figures for further direction on the pace of future interest rate changes from the world’s major central banks.

Global Markets Show Broad Gains as European and Asian Indices Climb; Tech and Policy Hopes Fuel Rally

Global equity markets delivered a largely positive performance on Tuesday, with European benchmarks leading the charge and several key Asian indices posting strong gains, as investor sentiment was buoyed by a mix of corporate earnings optimism and anticipated shifts in monetary policy. However the stand-out performer was the Israeli benchmark index which racked up a 3 percent on the announcement by Donald Trump of his plan for Gaza.

Canada’s S&P/TSX Composite posted a modest gain, adding 0.17 percent to close at 30,022.81.

In Europe, the region’s major bourses finished solidly in the green. Germany’s DAX outperformed, climbing 135.66 points, or 0.57 percent, to close at 23,880.72. The pan-European EURO STOXX 50 was not far behind, gaining 23.11 points, or 0.42 percent, to settle at 5,529.96.

The Euronext 100 Index also edged higher, up 0.17 percent to 1,658.59. Belgium’s BEL 20 was a notable standout, jumping 47.45 points, or 0.99 percent, to end the session at 4,820.57.

The UK’s FTSE 100 added 50.59 points, a rise of 0.54 percent, finishing the day at 9,350.43. France’s CAC 40 saw a more modest increase of 15.07 points, or 0.19 percent, closing at 7,895.94. 

Asian and Pacific Markets Mixed

The trading session in Asia presented a mixed picture, though several major indices recorded significant advances. Hong Kong’s Hang Seng Index was a strong performer, rising 232.68 points, or 0.87 percent, to 26,855.56. Singapore’s STI Index gained 0.71 percent to close at 4,300.16.

New Zealand’s S&P/NZX 50 was the region’s top performer, surging 159.80 points, or 1.22 percent, to finish at 13,292.36. Taiwan’s TWSE Index also had a strong day, adding 0.94 percent to reach 25,820.54.

However, the picture was not uniformly positive. Japan’s Nikkei 225 bucked the trend, dipping 111.12 points, or 0.25 percent, to close at 44,932.63. South Korea’s KOSPI also fell slightly, down 0.19 percent to 3,424.60. Australia’s S&P/ASX 200 retreated 0.16 percent, while the broader All Ordinaries index slipped 0.14 percent.

In South Asia, India’s S&P BSE Sensex pulled back marginally, declining 97.32 points, or 0.12 percent, to settle at 80,267.62. Indonesia’s IDX Composite saw a more pronounced drop, falling 45.96 points, or 0.57 percent, to 8,077.29. Malaysia’s FTSE Bursa Malaysia KLCI was nearly flat, eking out a gain of just 0.06 percent.

Middle Eastern and African Highlights

Markets in the Middle East and Africa showcased some of the day’s most robust gains. Israel’s TA-125 soared, posting a remarkable gain of 96.25 points, or 3.05 percent, to close at 3,250.03. Egypt’s EGX 30 also finished firmly in positive territory, rising 0.77 percent to 36,670.10. South Africa’s Top 40 USD Net TRI Index mirrored the positive sentiment, climbing 0.77 percent to 6,289.90.

In China, the SSE Composite Index advanced 20.25 points, or 0.52 percent, closing at 3,882.78.

Analysts suggest that the broad-based gains reflect a cautiously optimistic outlook among investors, who are balancing strong corporate fundamentals against lingering geopolitical concerns and the future path of interest rates from the world’s major central banks.

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