The S&P 500 and Nasdaq 100 notch new closing highs as investors shake off the government shutdown
The S&P 500 closed 0.3% higher, the Nasdaq 100 was up 0.5%, and the Russell 2000 gained 0.2%.
A surprise drop in private payrolls boosted traders’ confidence in two more rate cuts in 2025 despite the federal government shutdown, which could delay key economic data, including Friday’s jobs report.
The S&P 500 notched a fresh all-time high, crossing above the 6,700 level for the first time. The Nasdaq 100 also closed at a new all-time high, while the Russell 2000 powered higher in the final hours of the session.
Healthcare was the best-performing sector ETF for the second day in a row, as the Trump administration will not be imposing tariffs on pharmaceutical companies by the deadline it had initially given them, according to a White House official. Pharma stocks Eli Lilly, Amgen, Roche, and GSK all rallied on the news.
Other stocks that moved higher:
Plug Power soared on a flurry of bullish options activity after the company announced that it delivered its first electrolyzer to a refinery in Portugal.
Nike extended its rally as investors and analysts processed the sneaker giant’s stronger-than-expected Q1 results.
EV maker ChargePoint jumped as the last rush of car buyers to take advantage of Biden-era federal EV incentives put a bunch of new EVs on the road.
Tesla’s September sales rose in France and Denmark for the first time this year and continued to grow in Norway and Spain.
Ford sales climbed for the seventh straight month as EVs hit a quarterly record.
Lithium Americas spiked on plans for the Department of Energy to take a 5% stake in exchange for early access to financing and deferred debt service.
Intel jumped on reports that it’s in talks for AMD to come aboard as a customer for Intel’s troubled contract chip manufacturing division, known as a foundry.
AI medical diagnostics company Tempus AI rose following yesterday’s executive order promoting AI to produce solutions for pediatric cancer.
Federal immigration and prison operator GEO Group popped on yesterday’s announcement that it has won a new contract with ICE to continue in its role as a vendor of electronic monitoring.
Strategy rallied following IRS interim guidance that would remove the 15% Corporate Alternative Minimum Tax for unrealized gains on bitcoin holdings.
Stocks that moved lower:
Reddit sank amid elevated trading activity, seemingly driven by reports on social media that suggest ChatGPT is using Reddit content as a source much less often.
Amazon launched Amazon Grocery, a new private-label food brand that combines its Fresh and Happy Belly lines into one collection, sending grocery-selling rivals Target, Walmart, Kroger, and Costco lower.
Power turbine maker GE Vernova dipped after RBC analysts cut their rating on the stock.
