Major U.S. Stock Indexes Set New Records Despite Government Shutdown
Major U.S. stock indexes closed at record highs on Thursday, with the S&P 500 reaching 6,715.35, as investors shrugged off concerns about the ongoing federal government shutdown.
The S&P 500 gained 0.06%, while the Nasdaq Composite jumped 0.39% to 22,844.05, and the Dow Jones Industrial Average climbed 0.17% to 46,519.72. All three indexes achieved new all-time closing records despite the shutdown entering its second day.
Investors remained optimistic as the Federal Reserve is widely expected to cut interest rates at its October 28-29 meeting, with futures markets pricing in 95% probability of a rate reduction.
The shutdown has created an economic data blackout, with the crucial September jobs report postponed indefinitely. “The backdrop to this shutdown is much different than the 2018 shutdown, which was the longest on record,” said Jay Woods, chief market strategist for Freedom Capital Markets.
Technology stocks led gains, with Nvidia reaching new highs as artificial intelligence enthusiasm continued to drive investor sentiment. Treasury yields fell, with the 10-year note dropping below 4.10%, providing additional support for equity markets.