United States benchmark averages closed higher on Tuesday (Wednesday AEST), with the Dow Jones Industrial Average finishing at a fresh record high as investors shrugged off concerns about a potential government shutdown and celebrated one of the strongest Septembers in years.
During the regular session, the Dow Jones Industrial Average gained 81.8 points or 0.2% to end at 46,397.9, a fresh all-time high. The S&P 500 rose 27.3 points or 0.4% to 6,688.5, while the Nasdaq Composite added 68.9 points or 0.3% to close at 22,660.0.
U.S. President Donald Trump said on Tuesday that while “nothing is inevitable”, a shutdown remained “probably likely” as the federal government faces a midnight funding deadline.
Historically, such stoppages have had limited impact on markets, but this time could prove to be more damaging if it triggers large-scale layoffs or drags on longer than expected.
A shutdown would also delay the release of key economic data, including Friday’s nonfarm payrolls report, and may prompt credit rating agencies to reassess U.S. debt strength after Moody’s downgrade in May.
On Wall Street, software stocks came under pressure. Paychex fell more than 1% after releasing quarterly results, while Salesforce dropped 3.3%.
Nvidia advanced, boosted by gains at CoreWeave, which announced a US$14.2 billion artificial intelligence cloud infrastructure deal with Meta Platforms. CoreWeave shares surged 13% on the news.
UiPath jumped 10% after unveiling partnerships with OpenAI, Snowflake, and Nvidia, aiming to integrate its automation technology into AI systems.
Pfizer rose more than 3% following reports it will strike a deal with the Trump administration to lower Medicaid drug prices in exchange for tariff relief and expanded U.S. manufacturing.
Elsewhere, Firefly Aerospace fell 21% after a rocket booster exploded during preflight testing in Texas, though the company said no other facilities were affected.
Despite political uncertainty, September ended on a high note for markets. The S&P 500 gained more than 3% for the month, defying a historical trend of September weakness. The Nasdaq surged 5.6%, while the Dow added nearly 2%.
For the third quarter, the S&P rose nearly 8%, the Nasdaq more than 11%, and the Dow over 5%, marking its fifth consecutive quarterly advance.
Bond markets were mixed, with 10-year rates up 0.3% to 4.154%, and 2-year Treasury yields easing 0.2% to 3.617%.
