Business, Finance & Tech
Dow, S&P 500 Hit Record Highs as Markets Look Past Government Shutdown
Wall Street appeared largely unfazed Wednesday as the federal government entered its first shutdown in seven years. Both the Dow Jones Industrial Average and the S&P 500 closed at record highs despite political gridlock in Washington.
The Dow rose 43 points, or 0.09%, while the S&P 500 gained 0.34% and the Nasdaq Composite climbed 0.42%. Stocks had opened lower but turned positive as investors focused on strong corporate earnings and expectations for continued Federal Reserve rate cuts.
Analysts noted that government shutdowns historically have had limited long-term impact on markets. Since 1976, there have been 20 shutdowns, with the S&P 500 typically posting gains in the months after they end. Still, some warned this shutdown could pose unique risks by delaying critical government economic reports that inform investors and the Fed’s decision-making.
Bonds rallied as well, with Treasury yields falling after payroll data showed the private sector lost 32,000 jobs in September. Meanwhile, safe-haven assets surged, with gold briefly hitting a record $3,900 per troy ounce and silver climbing nearly 2% to $47.50.
“The government shutdown has investors gravitating toward safe-haven assets,” said José Torres, senior economist at Interactive Brokers. But many market strategists emphasized that the broader rally is being driven by corporate earnings, optimism about artificial intelligence investment, and expectations of lower interest rates.
Corporate profits continue to defy slowdown concerns, and the S&P 500 has now logged five consecutive months of gains. With stocks at record levels, investors are keeping watch on third-quarter earnings, which could help determine whether the rally continues into the fall.
Credit: CNN Newsource
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By: NBC Palm Springs
October 1, 2025
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BREAKING NEWS 🚨: Calvin Harris officially rescheduled for Head Trip day 2 #headtripfestival #calvinharris #severeweather #tropicalstorm #indio
Attendees are returning to the Empire Polo Grounds for day 2 of the EDM festival, ‘Head Trip’, after performances were stopped last night due to severe weather. Stay tuned with NBC Palm Springs to see how the weather is affecting festival goers’ plans. #headtripfestival #severeweather #flashfloodalert #760 #nbcpalmsprings
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🌧️ Tropical Storm Rachel is bringing the threat of heavy rain and flooding to the Coachella Valley. Thalia and Jerry break down the hour-by-hour forecast, with the heaviest rainfall expected from midnight through Sunday morning and more than an inch possible in parts of the Valley. Flood watches and warnings remain a concern, with showers expected to taper off by Sunday evening. Stay weather-aware and stay with NBC Palm Springs for the latest updates! ⛈️ #TropicalStormRachel #CoachellaValley #WeatherAlert #NBCPalmSprings
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