Industrial Stocks Surge as Investors Bet on Resilient Economy Amid Government Shutdown and Inflation Concerns

US industrial and transportation shares rose as traders bet on the economy's resilience despite inflation and a government shutdown. Groupe SEB's shares fell after it cut growth projections due to soft European business and US uncertainty. Firefly Aerospace's shares rallied after it disclosed a deal to purchase SciTec, a military technology provider.

US industrial and transportation shares rose on September 12, 2025, as traders bet on the economy's resilience despite ongoing inflation and the looming threat of a government shutdown. The optimism was fueled by predictions from crypto traders on Polymarket, who believe there is an 85% chance of a government shutdown by October 1 85% chance of U.S. government shutdown by October 1^[1]. This prediction, backed by over $5 million in bets, has added a layer of uncertainty to the market.

The rally in industrial and transportation shares was partly driven by investors' confidence in the economy's ability to withstand the challenges posed by inflation and potential disruptions from a government shutdown. Analysts at Bitfinex warned that a shutdown could delay key inflation reports like CPI, complicating the Federal Reserve's policy decisions 85% chance of U.S. government shutdown by October 1^[1]. Despite these uncertainties, investors remained bullish on the sector, suggesting a belief in the economy's underlying strength.

In contrast, Groupe SEB's shares fell after the company cut its growth projections due to soft European business and US uncertainty 85% chance of U.S. government shutdown by October 1^[1]. The cut in projections reflected the company's concerns about the economic climate and its potential impact on sales and profitability.

Adding to the market's volatility, Firefly Aerospace's shares rallied after the company disclosed a deal to purchase SciTec, a military technology provider, in a transaction valued at approximately $855 million Firefly Aerospace Shares Jump on $855 Million SciTec Acquisition^[2]. The acquisition, which will see Firefly pay $300 million in cash and issue $555 million in shares, is expected to close by the end of 2025. The deal aims to enhance Firefly's capabilities in software analytics, remote sensing, and data processing, complementing its current focus on launch services and lunar operations.

As of press time, Bitcoin was trading at $113,341.29, and the total crypto market cap stood at $3.87 trillion 85% chance of U.S. government shutdown by October 1^[1]. The cryptocurrency market's performance, along with the broader economic outlook, will continue to influence investor sentiment and market movements.