Closing Bell: Markets Advance Cautiously as Government Shutdown Sets In
Investors leaned into large-cap tech as indices eked out gains despite fiscal uncertainty.
Market Recap
S&P 500: 6,711.20 (+0.3%)
Dow Jones Industrial Average: 46,441.10 (+0.1%)
Nasdaq Composite: 22,755.16 (+0.4%)
Russell 2000: 2,442.35 (+0.2%)
Markets closed modestly higher even as the U.S. government shutdown took effect at midnight and ADP reported a 32,000 drop in private payrolls for September.
Corporate Movers
Healthcare / Pharma / Utilities
The AES Corp. (AES) surged nearly 17% on reports that BlackRock-owned Global Infrastructure Partners is advancing a roughly $38 billion acquisition.
Eli Lilly (LLY), Pfizer (PFE), and Merck (MRK) rallied on expectations of favorable policy shifts under the new administration stance.
Technology / Semiconductors / Storage
Micron (MU), Western Digital (WDC), and Seagate (STX) gained as investors positioned for greater demand in data storage and AI infrastructure.
Lithium Americas (LAC) soared around 23%, bolstered by reports of a 5% U.S. government stake in its Thacker Pass project.
Corteva (CTVA) fell over 9% after announcing a structural split of its seed and crop protection units.
Other notables
Nike (NKE) jumped around 6.5% after delivering better-than-expected Q1 sales in North America.
Netflix (NFLX) dipped 2.3% following a boycott campaign led by Elon Musk.
Sector & Market Tone
Defensive / Healthcare / Utilities outperformed, driven by safe-haven flows amid policy risk.
Tech / Semiconductors / Storage provided underlying strength despite macro jitters.
Energy / Commodities were pressured as oil hit multi-week lows; OPEC+ supply expectations weighed.
Small and Mid-Caps lagged; gains were concentrated among large-cap and policy-sensitive sectors.
The dollar weakened and gold surged to record levels as risk aversion and financial uncertainty escalated.
Key Takeaways
The first day of the shutdown passed with relatively muted equity moves — gains were modest and selective.
Automatic Data Processing’s (ADP) surprising payroll decline added weight to concerns about a cooling labor market in the absence of federal data.
Policy uncertainty is now front and center; markets will likely lean heavily on sector news and corporate results for direction.
The strength in healthcare, utilities, and AI/Data Storage names suggests rotation toward “safer” growth and sectors perceived as less sensitive to macro pressures.
The shutdown could delay key releases, including Friday’s non-farm payrolls, adding opacity to the Fed’s forward path.
What to Watch Tomorrow
8:30 AM (ET) - Initial Jobless Claims & Continuing Claims
Why It Matters: First direct labor market signal since the ADP release; critical for gauging momentum ahead of the official jobs report.
Pre-open (ET) - Meta (META) & Broadcom (AVGO) Earnings
Why It Matters: Key reads on advertising demand and semiconductor supply chains.
10:00 AM (ET) - ISM Manufacturing (Sept) & PMI Data
Why It Matters: Fresh signals on cyclical momentum and factory activity.
Throughout the day: Developments in DC
Why It Matters: With the shutdown underway, any movement in funding negotiations could sway market tone.
