US stocks hold with modest gains, investors shrug off government shutdown fears

After yesterday's modest pullback, major US equity indices regained some positive traction and opened slightly higher on the last trading day of the week. 

Investors shrugged off fears of a looming government shutdown while increasing bets over strong corporate earnings had been driving the markets higher since the beginning of 2018. 

It is worth reporting that all the three major indices are up around 4-5% YTD and the solid start to the New Year comes on the back of growing market expectations of strong domestic/global economic growth. 

Meanwhile, the US House of Representatives has already passed a bill on Thursday that would keep the government funded through Feb. 16 but the bill has yet to be approved by the Senate, where it faces enough opposition to be derailed. 

The market reaction, however, is likely to be muted, as has been the case over the past year, since it is unlikely to have much of an economic impact. Nevertheless, major benchmark indices, at current levels, remain poised to post modest weekly gains.