Dow, Nasdaq Indexes Trim Losses on Shutdown Hope, SMCI Stock Dives After Earnings
U.S. stocks clawed back from their intraday lows Thursday as faint signs of progress in government shutdown talks sparked a modest rebound..
Quick overview
- U.S. stocks rebounded from early losses as reports of progress in government shutdown talks lifted sentiment, though caution remained prevalent.
- The S&P 500 recovered nearly half of its earlier losses, while the Dow and Nasdaq found support despite closing in the red.
- Super Micro Computer reported mixed fiscal results, beating earnings estimates but missing revenue forecasts, leading to a decline in its stock price.
- Investors are concerned about slowing demand in the AI server market, which has impacted Super Micro's recent performance.
U.S. stocks clawed back from their intraday lows Thursday as faint signs of progress in government shutdown talks sparked a modest rebound, though sentiment remained fragile.
Wall Street Bounces from Session Lows
U.S. stock markets pared steep early losses late in the session after reports suggested the Senate may remain in session over the weekend to continue negotiations on reopening the government. Cami Mondeaux of Deseret News reported that Democrats appeared unified around Affordable Care Act demands, with some lawmakers hinting at “progress toward a solution.”
Although the update offered only a faint glimmer of hope, it was enough to lift sentiment from the day’s worst levels. The S&P 500, which was down more than 80 points earlier, recovered nearly half those losses in afternoon trade.
Dow and Nasdaq Find Support
The Dow Jones Industrial Average briefly slipped below 47,000, extending its recent slide, but key moving averages — which have acted as reliable support since May — once again helped stabilize the index.
Dow Chart Daily – Will MAs Hold As Support Again? 
The Nasdaq Composite mirrored the move, rebounding off the day’s lows as dip buyers emerged in big-cap tech, though the index still closed deep in the red.
Despite the modest recovery, traders remained cautious, noting that the potential government funding resolution alone is unlikely to reverse broader risk aversion tied to policy uncertainty and rate concerns.
Closing Levels for Major U.S. Stock Indices
S&P 500 — Finished the session at 6,720.32, down −75.97 points (−1.12%).
- The benchmark index saw broad-based declines, with weakness across technology, financials, and consumer discretionary sectors leading the pullback.
Dow Jones Industrial Average — Closed at 46,912.30, down −398.70 points (−0.84%).
- Blue-chip stocks lost ground as risk aversion rose, with industrial and healthcare names weighing on performance.
Nasdaq Composite — Settled at 23,053.99, down −445.80 points (−1.90%).
- Tech shares bore the brunt of selling pressure as investors rotated out of high-valuation growth names amid renewed rate and earnings concerns.
Russell 2000 — Ended the day at 2,418.83, falling −45.95 points (−1.86%).
- The small-cap index continued to lag the broader market, reflecting growing caution toward economically sensitive and domestically focused companies.
Super Micro Computer Misses Revenue Estimates
Super Micro Computer (NASDAQ: SMCI) delivered mixed results for its fiscal first quarter of 2026.
- Earnings per share: $0.35, beating the Zacks Consensus Estimate by 25%, though down 52% year-over-year.
- Revenue: $5.02 billion, missing forecasts by 0.56% and falling 15.5% from a year ago.
The disappointing revenue figure overshadowed the earnings beat, sending SMCI shares down 4% to around $40 and roughly 25% lower for the week.
Investors interpreted the results as a sign of slowing demand in the AI server space, an area that had driven SMCI’s remarkable rally earlier this year.
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