This week’s economic backdrop was shaped by a mix of encouraging corporate earnings and heightened macro uncertainty.

The U.S. government shutdown went into effect, suspending key releases such as the September jobs report, and dampening investor confidence. Revised data showed second-quarter GDP rising at a 3.8% annualized pace, stronger than initially reported, though consumer sentiment slipped to 55.1, underscoring inflation and labor market concerns. On markets, pharmaceutical shares climbed after government drug-purchase expansion plans, while Nvidia and other semiconductor firms extended AI-driven gains.

Looking ahead, the economic calendar next week will be dominated by the effects of the continuing U.S. government shutdown. With official jobs and inflation data delayed, markets will rely more heavily on private surveys, earnings reports, and Federal Reserve communications. Treasury yields remain volatile, and the release of Fed meeting minutes is expected to provide signals on future policy amid the lack of new data. Earnings season accelerates with upcoming releases from major banks, industrials, and consumer-facing companies, while technology stocks, led by Nvidia and peers, remain central to sentiment.

Given this economic backdrop, let us see how this impacts the performance of various investment strategies.