Markets Shake Off Shutdown, Close at Fresh Highs

After an uncertain open, Wall Street quickly regained its footing, brushing aside concerns over the ongoing government shutdown. By the closing bell, the S&P 500 (+0.3%) had pushed past the 6,700 mark to a new record high, the Nasdaq Composite (+0.5%) led the pack with another record close, and the Dow Jones Industrial Average (+0.1%) also secured a fresh closing high.

The early dip came as the Senate failed to pass a continuing resolution to fund the government, leaving lawmakers to pick up negotiations after the Yom Kippur holiday later this week. Markets, however, showed little sign of worry. While the shutdown will delay Friday’s Employment Situation Report, investors instead focused on softer private payroll data that boosted expectations for additional Fed easing. September’s ADP report showed a 32,000 drop in private-sector jobs (vs. 40,000 expected), helping push rate cut odds even higher. The CME FedWatch tool now prices a 100% chance of a 25-basis-point cut in October and nearly 88% odds of another in December.

Sector leadership was narrow but powerful enough to lift the major averages. Healthcare (+3.0%) led the way, extending yesterday’s momentum after President Trump unveiled the TrumpRx initiative. Pfizer (PFE) surged nearly 7% as it pledged lower drug costs and a $70 billion R&D investment in exchange for a tariff reprieve. Eli Lilly (LLY), Thermo Fisher (TMO), and Biogen (BIIB) all posted gains of 8–10%, driving the sector back into positive territory for the year.

Technology (+0.7%) also advanced, with semiconductors in focus as the PHLX Semiconductor Index climbed 2.1%. NVIDIA (NVDA) rallied nearly 4%, while Apple (AAPL) gained over 4% on strong global demand for the iPhone 17. Consumer discretionary (+0.7%) benefitted from Tesla (TSLA), which added more than 3% ahead of its Q3 delivery report, and Nike (NKE), which jumped 6.5% on an upbeat earnings release.

On the downside, materials (–1.2%) slumped after Corteva (CTVA) fell more than 9% on news it would split into two companies. Financials (–0.9%) weakened on broad banking losses, while communication services (–0.8%) slipped as Alphabet (GOOG) and Meta (META) both moved lower.

Despite these pockets of weakness, breadth was positive: advancers outpaced decliners by healthy margins on both the NYSE and Nasdaq. Small- and mid-cap indices also participated, with the Russell 2000 rising 0.2% and the S&P Mid Cap 400 adding 0.3%.

Overall, the session highlighted the market’s resilience in the face of political gridlock, with healthcare and tech taking the spotlight. Investors now await Friday’s delayed data calendar to see whether the dovish momentum behind rate cut expectations will hold.

Our FTInvest 11 model portfolio managed to close in positive territory today, though the move was modest. After spending much of the session trading without clear direction, the index gained 0.09% by the close, setting a new level at 851.86.

The tone of the day was subdued, with the portfolio showing little momentum compared to earlier strong weeks. Still, the ability to edge higher despite broader market headwinds underscored a measure of resilience.

While the gain was slight, today’s advance kept FTinvest 11 within reach of its recent record highs, suggesting the index remains well-positioned should market sentiment strengthen in the sessions ahead.