Closing Bell: AI and Healthcare Drive Market Higher Despite Shutdown
Gains in technology and healthcare outweigh energy weakness and policy noise.
Closing Snapshot
S&P 500: 6,715.35 (up ~0.1%)
Dow Jones: 46,519.72 (up ~0.2%)
Nasdaq Composite: 22,844.05 (up ~0.4%)
Russell 2000: 2,458.49 (up ~0.7%)
Summary
Markets climbed modestly on Thursday, led by technology and healthcare, while energy stocks lagged. Investors looked past political gridlock in Washington and the lack of fresh government data, focusing instead on company level news and sector specific drivers. Treasury yields eased, providing support for equities and keeping the market tone cautiously constructive.
Stocks on the Move (by Sector)
Technology
NVIDIA (NVDA) extended its rally as AI demand remains the central driver of investor flows.
AMD (AMD) gained after speculation that it may secure foundry related orders, lifting the semiconductor group.
Fair Isaac (FICO) surged about 18% after announcing a direct access program for credit scoring, threatening the traditional bureau model.
Healthcare
Pfizer (PFE), Biogen (BIIB), and Merck (MRK) climbed on optimism around drug policy and a rotation into defensives.
Energy
Occidental Petroleum (OXY) fell roughly 7% after unveiling the sale of its OxyChem business to Berkshire Hathaway for about $9.7B.
Energy stocks underperformed alongside softer oil prices.
Consumer
Starbucks (SBUX) gained on restructuring headlines and cost cutting measures.
Broader names traded mixed as inflation and margin concerns weighed.
Industrials
Tredegar (TG) weakened further, breaking below key technical levels.
Broader industrials lagged as commodity volatility and macro uncertainty persisted.
Macro Backdrop
Markets had to make do without the usual stream of government statistics, with the shutdown keeping key reports offline. That absence gave investors more reason to focus on company news and the Fed’s policy path. Treasury yields drifted lower, taking some pressure off equities, while oil’s slide underscored nerves about global demand. The day’s story was less about Washington gridlock than about where money was flowing: into AI and healthcare winners, and away from the struggling energy patch.
Key Takeaways
Shutdown fears did not derail the rally, with indexes extending gains.
AI and innovation themes continued to dominate.
FICO’s model shakeup sent shockwaves through credit reporting firms.
Energy weakness capped broader upside as OXY slumped.
With government data limited, markets remain guided by company specific news and Fed signals.
What to Watch Tomorrow
8:30 AM (ET) Nonfarm Payrolls and Unemployment (Sept.)
Why It Matters - Key labor data could heavily influence Fed expectations if released.
10:00 PM (ET) ISM Manufacturing PMI (Oct.)
Why It Matters - A stronger or weaker reading may shift sentiment in cyclicals.
4:00PM (ET) - Fed Beige Book
Why It Matters- Without other releases, the Fed’s regional insights carry added weight.
Post Close (ET) - Apple (AAPL), Tesla (TSLA), Meta (META) earnings
Why It Matters - Tech heavyweights will test whether optimism in growth leaders is reflected in results.
Closing Thought
Markets continue to reward innovation and defensives while punishing energy, leaving investors to balance optimism with caution as earnings season intensifies.
