Wall Street Smashes Records Despite U.S. Government Shutdown
President Donald Trump fueled political tensions by threatening to cut funding to Democrat-leaning states and firing workers.
Quick overview
- New York stocks closed at record highs despite concerns over the ongoing U.S. government shutdown.
- The Dow Jones Industrial Average rose 0.17%, while the S&P 500 and Nasdaq Composite also saw gains.
- Treasury Secretary Scott Bessent warned that the shutdown could have a significant impact on the economy and workforce.
- Traders are focusing on private-sector data as key economic releases are delayed due to the budget standoff.
New York stocks swung back and forth on Thursday but ultimately closed at fresh record highs across all three major indexes, even as optimism faded that the ongoing U.S. government shutdown would be short-lived and carry only limited economic fallout.
The Dow Jones Industrial Average rose 0.17% to 46,520.15 points, the S&P 500 edged up 0.07% to 6,715.80, while the Nasdaq Composite advanced 0.39% to 22,844.05.
Treasury Secretary Scott Bessent warned the shutdown, which began at midnight Tuesday, could weigh more heavily on the economy than past interruptions. “We could see an impact on GDP, on growth, and on the U.S. workforce,” he cautioned.
The budget standoff is already delaying government services ranging from air traffic control to disaster relief, while Friday’s release of the key nonfarm payrolls report is now in jeopardy. The length of the shutdown remains uncertain, with Democrats and Republicans in the Senate far from agreement on a spending bill.
President Donald Trump fueled political tensions by threatening to cut funding to Democrat-leaning states and permanently fire thousands of federal workers.
Past shutdowns have historically had limited impact on markets, but the record 35-day standoff in 2018–2019 cost the U.S. economy an estimated $11 billion, according to the Congressional Budget Office. Betting site Polymarket currently gives the highest probability to a shutdown lasting one to two weeks, though wagers also imply a 34% chance of a longer impasse, with over $1.2 million placed.
Labor Market in Focus
With official economic releases delayed, traders are turning to private-sector data. Challenger, Gray & Christmas reported planned job cuts fell 37% in September to 54,064, down 26% from a year earlier. Meanwhile, the Chicago Fed’s real-time model estimated the U.S. unemployment rate held steady at 4.3% in September.
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