U.S. stocks finished mixed as investors looked past the first government shutdown since before the pandemic and focused instead on weaker labor market data that pulled Treasury yields lower. The Dow Jones Industrial Average gained 73 points to 46,471, while the S&P 500 added 25 to finish at a fresh record high of 6,713. The Russell 2000 slipped 3 to 2,434, and the NYSE FANG+ Index rose 6 to 16,164.
The session began under pressure after Congress failed to strike a last-minute funding deal, triggering a partial shutdown. But equities quickly stabilized, with investors viewing the standoff as temporary and likely to have only limited economic fallout. Safe-haven assets were in favor: gold climbed $19 to $3,893 an ounce, and Bitcoin surged nearly $3,000 to trade around $117,200.
On the macro front, the ADP Employment Report showed the private sector shed 33,000 jobs in September, with losses concentrated among small and medium-sized firms. Large businesses added modestly to payrolls, according to ADP. A still-sluggish ISM Manufacturing Index offered little relief, with new orders slipping back into contraction. The data sent yields lower, with the 10-year Treasury down 5 basis points to 4.10% and the 2-year falling 7 bps to 3.54%.
Healthcare stocks led the charge, extending a rebound sparked by Pfizer's $5 billion Metsera deal and fresh White House announcements on drug pricing and domestic investment. Utilities also outperformed, supported by falling rates and reports that BlackRock's Global Infrastructure Partners is nearing a $38 billion deal for AES. Consumer discretionary names rallied as well, with Nike up more than 5% on earnings, while Tesla and Etsy extended recent gains.
Commodities were mixed: ICE Brent crude slipped $0.70 to $65.33 a barrel, while copper eased slightly. Agricultural markets found support after President Trump flagged soybeans as a focus of his planned meeting with Chinese President Xi later this month.
The shutdown drew notice from credit watchers. Fitch Ratings said Wednesday that while the funding lapse highlights "ongoing governance challenges," it does not have immediate implications for U.S. creditworthiness.
With the third quarter now in the books, the S&P 500 closed September up 3.5% and Q3 nearly 8% higher, defying its typically weak seasonal stretch. The Russell 2000 outpaced large caps with a 12% quarterly gain, fueled by thematic trades in nuclear, quantum computing, and digital assets.
Trading volumes are expected to thin on Thursday as Yom Kippur begins at sundown, while China remains closed for Golden Week and U.S. government data releases are suspended during the shutdown.
