The three major U.S. stock indexes ended Thursday at record highs, defying concerns over a government shutdown now in its second day.
The S&P 500 rose 0.06% to close at 6,715.35, marking a new all-time high after briefly climbing 0.3% intraday. The Dow Jones Industrial Average added 78.62 points, or 0.17%, to 46,519.72. The Nasdaq Composite advanced 0.39% to 22,844.05, also touching a record intraday level, supported by strength in Nvidia, which itself hit another peak.
Investor optimism has largely held steady despite the political gridlock in Washington, with equities buoyed by hopes of further rate cuts from the Federal Reserve later this month.
Shutdown weighs on outlook
Treasury Secretary Scott Bessent warned Thursday that U.S. GDP could “see a hit” from the funding lapse, intensifying worries over economic performance. The shutdown began after Democrats and Republicans failed to reach a budget agreement by Tuesday’s deadline. Democrats are insisting on extending health care tax credits, while President Donald Trump has framed the deadlock as an “unprecedented opportunity” to cut federal agencies. Analysts caution that markets can tolerate a short shutdown, but a prolonged impasse could dent confidence.
Economic uncertainty grows
The standoff has already halted the release of key economic data. Friday’s nonfarm payrolls report will not be published due to the Labor Department’s pause on activity. Investors are watching closely, with ADP figures earlier in the week pointing to a slowdown in private payrolls.
Prediction markets suggest the shutdown could stretch nearly two weeks, with the Senate not set to return until Friday after Yom Kippur. Trump has also threatened permanent mass federal job cuts under a shutdown, amplifying fears for the labor market.
Corporate movers
Tesla shares slid 5.1% despite reporting a surprise jump in quarterly vehicle sales, as buyers rushed to secure electric-car purchases before federal tax credits expired. Nvidia extended its winning streak, hitting record highs for a second straight day, while Apple edged closer to its own peak.
Australian market
The SPI 200 futures point down 4 points, or 0.04%, to 8,968, suggesting a softer open for local shares. Regional data will be limited, with New Zealand consumer confidence due, while investors await global service-sector reports from France, the UK, and the U.S. later in the day.
