S&P 500 futures closed the week with choppy trade, dropping to a low of 6,655 mid-morning only to reverse and rally back to trade near 6,740, very close to unchanged. This late-day rally was potentially fueled by optimism that the government shutdown could end soon, despite a weaker-than-expected University of Michigan sentiment report released today. The choppiness caused volatility to spike higher as the E-mini S&P futures moved lower; however, as the index recovered, volatility came off its highs but still closed higher on the day and the week. The continuing government shutdown is withholding vital inflation data needed by the Federal Reserve for its December meeting. Next week, the market will rely on continued earnings announcements and Fed speakers to fill the data vacuum.
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