Dow, S&P 500, Nasdaq Rise; Government Shutdown; Nike, Nvidia, Tesla, Strategy, and More Movers
The S&P 500 set a fresh intraday record on Wednesday even though a majority of the stocks in the index were down.
The market benchmark was up 0.2% and trading north of 6700 for the first time even though 301 stocks in the index were down. The Dow was up 23 points, or 0.1%, and on track for a closing high. The Nasdaq Composite was up 0.4% and gaining ground on its Sept. 22 record close.
Traders were turning to risk and growth. They were shedding low volatility stocks and value stocks. Only health care, utilities, consumer discretionary, and tech were up among the major 11 S&P 500 sectors. Materials, consumer staples, communication services, and financials were the biggest laggards.
Wall Street has taken the latest government shutdown drama in stride. Commentators so far see it as a political event rather than something that could sink the market. The S&P has historically risen during government shutdowns.
“History suggests the US government shutdown is unlikely to make much impact on financial markets even if it drags on for some time,” writes Jonas Goltermann, deputy chief markets economist at Capital Economics. “The bigger issue is the continued softening of the US labour market, which points to downside risks for equities, Treasury yields and the dollar.”
U.S. Treasury yields were lower after ADP’s private payroll report showed a contraction in private sector jobs in August and September. Odds of a half-point in rate cuts also rose on the news.
