Finance

S&P 500 Gains Amidst Government Reopening: How the Japanese Yen’s Slide and Tech Sector Wobbles Affect Your Portfolio

U.S. markets anticipated a government reopening; S&P 500 rose, while the Nasdaq fell amid tech sector woes.

November 12, 2025, 9:28 AM

Extreme low-angle view of the New York Stock Exchange building facade and surrounding skyscrapers.

A low-angle shot of the NYSE building, flanked by three American flags and towering skyscrapers. By Stockinasia / Shutterstock.com.

Executive Summary

U.S. markets are largely pricing in the federal government’s impending reopening, with the Dow Jones Industrial Average reaching a new record and the S&P 500 posting a modest gain, while the Nasdaq underperformed.

The technology sector experienced significant volatility, with Nvidia’s shares falling after SoftBank sold a stake and CoreWeave declining due to data center issues.

The Japanese yen weakened to a nine-month low against the dollar after Prime Minister Sanae Takaichi reiterated calls for the Bank of Japan to avoid excessive interest rate hikes.

The Story So Far

U.S. markets are reacting to the anticipated reopening of the federal government after a 42-day shutdown, which is also shifting attention towards a deluge of delayed economic data and ongoing speculation for a potential Federal Reserve interest rate cut next month. Concurrently, the tech sector is experiencing volatility due to specific company issues and substantial funding demands from major investors, while the Japanese yen has slid to a nine-month low following calls from the Prime Minister for the Bank of Japan to avoid excessive interest rate hikes.

Why This Matters

The impending U.S. government reopening, while largely priced in, will trigger the release of critical economic data that could sway the Federal Reserve’s interest rate decisions, impacting future borrowing costs. Concurrently, the tech sector’s significant volatility, driven by large investments and company-specific issues, signals potential concentrated risks within key market segments, while global currency fluctuations, like the yen’s nine-month low, underscore the ongoing influence of central bank policies and international trade dynamics on financial stability.

Who Thinks What?

U.S. markets are largely pricing in the federal government’s impending reopening and a potential Federal Reserve interest rate cut next month, although the tech-heavy Nasdaq underperformed amidst sector-specific concerns.

Japanese Prime Minister Sanae Takaichi advocates for the Bank of Japan to avoid excessive interest rate hikes, contributing to the yen’s weakening to a nine-month low.

SoftBank Group Corp. is committed to significant investments, including an “all-in” bet on OpenAI, despite facing substantial funding demands totaling $41 billion against a $28 billion cash position.

U.S. markets are largely pricing in the federal government’s impending reopening, following a House vote expected to restore funding through January, even as the tech sector experienced notable wobbles and the Japanese yen slid to a nine-month low. Today’s trading saw the S&P 500 post a modest gain and the Dow Jones Industrial Average reach a new record, contrasting with an underperforming Nasdaq, while attention now shifts to a deluge of delayed economic data and key central bank speeches.

U.S. Government Reopening and Market Performance

The U.S. House of Representatives is set to vote on restoring government funding through January, a move largely anticipated by markets after a 42-day shutdown. Despite the S&P 500 recording a modest gain and the Dow Jones Industrial Average reaching a new high on Veterans Day, the tech-heavy Nasdaq ended in negative territory, reflecting sector-specific concerns.

This prospective reopening comes amidst mixed economic signals, including preliminary ADP payroll figures indicating private sector employers shed an average of 11,250 jobs weekly through October. These figures continue to fuel speculation for a potential Federal Reserve interest rate cut next month, with futures markets suggesting a two-thirds chance of such a move despite some internal central bank disquiet.

Tech Sector Volatility and Global Impact

The technology sector faced significant pressure, with CoreWeave experiencing a 16% decline following data center issues. Nvidia, the world’s most valuable company, saw its shares fall by more than 2% after SoftBank Group Corp. sold a stake in the chipmaker.

SoftBank’s shares consequently slid as much as 10% in Tokyo, highlighting the substantial funding demands it faces to support an “all-in” bet on ChatGPT-creator OpenAI and other major investments. The conglomerate’s commitments, including a $22.5 billion follow-on investment in OpenAI, a $6.5 billion acquisition of Ampere, and a $5 billion deal for ABB’s robotics business, total $41 billion against a $28 billion cash position.

Currency Swings and International Politics

The Japanese yen weakened to a nine-month low of 154.9 per dollar after Prime Minister Sanae Takaichi reiterated calls for the Bank of Japan to avoid excessive interest rate hikes. While Finance Minister Satsuki Katayama cautioned against “one-sided and rapid movements” in the currency, traders are reportedly skeptical of intervention before the yen reaches 160 per dollar.

Elsewhere, the Swiss franc strengthened on reports that U.S. tariffs on Swiss imports would be significantly reduced from 39% to 15%. In Britain, the pound and government bond prices softened amid overnight reports of a potential leadership challenge against Prime Minister Keir Starmer, though Health Minister Wes Streeting denied plotting such a move.

U.S. Monetary Policy and Presidential Engagements

A slate of Federal Reserve officials, including Governors Christopher Waller and Stephen Miran, are scheduled to speak today, alongside Treasury Secretary Scott Bessent, who will address a joint Fed-Treasury conference. Treasury markets reopened with yields contained ahead of a $42 billion auction of 10-year notes.

President Donald Trump is expected to host a private dinner at the White House with several top business executives, including the chief executives of Nasdaq and JPMorgan Chase. Separately, President Trump has threatened to sue the BBC for $1 billion over a documentary he claims was deceptively edited.

Other Business and Energy Developments

General Motors has directed several thousand suppliers to remove Chinese-made parts from their supply chains, a move reflecting growing frustration over geopolitical disruptions. The International Energy Agency’s latest outlook surprisingly suggests oil demand could continue rising until 2050, a departure from previous projections.

As global markets navigate a complex landscape of government policy shifts, sector-specific challenges, and evolving monetary outlooks, investors are closely monitoring upcoming economic data releases and statements from central bank officials. The day’s events underscore a dynamic environment influenced by both domestic political developments and international trade and currency pressures.