Market Edges Higher Despite Shutdown, Tech Leads Gains

The stock market managed another round of record-setting finishes on Thursday, even as the government shutdown dragged on and headlines remained thin. The S&P 500 (+0.1%) and Nasdaq Composite (+0.4%) both set fresh intraday highs before closing at new records, while the DJIA (+0.2%) also logged a record close, though it fell short of surpassing last Tuesday’s peak. The Russell 2000 (+0.7%) led the pack with strong small-cap outperformance, while the S&P Mid Cap 400 (+0.1%) scraped out a modest gain after spending much of the session in the red.

Despite the upbeat finish, breadth was narrow. Only four S&P 500 sectors ended higher, but technology’s 0.5% climb carried enough weight to buoy the broader indices. Semiconductors stole the spotlight, with the PHLX Semiconductor Index (+1.9%) hitting another record high. Fair Isaac (FICO) surged nearly 18% after launching a direct license program that allows resellers to calculate and distribute FICO Scores directly—making it the S&P 500’s top performer of the day.

Materials (+1.1%), communication services (+0.3%), and industrials (+0.2%) rounded out the day’s gainers. By contrast, energy (-1.0%) continued to struggle, deepening its weekly slide to 4.0% as crude oil fell another 2.1% to $60.48 per barrel. Occidental Petroleum (OXY) tumbled more than 7% after Berkshire Hathaway announced a $9.7 billion all-cash deal to acquire its OxyChem chemical unit.

Consumer discretionary (-0.7%) also lagged, pressured by Tesla (TSLA -5.1%). The EV maker reported record Q3 deliveries of nearly 497,000 units, though investors worried that demand had been artificially boosted by the expiration of a $7,500 federal tax credit, leaving Q4 outlooks in question.

On the macro front, Senate Majority Leader John Thune warned that reopening the government this weekend remained unlikely, pushing the shutdown into next week. While markets appeared unfazed, the blackout of key economic releases added to the day’s subdued tone. Still, data that did surface reinforced expectations for additional Fed easing. The CME FedWatch tool now fully prices in a quarter-point cut at the October FOMC meeting, with rising odds of another cut in December.

In the end, late-session buying interest pushed the major averages back to their highs, underscoring investors’ willingness to keep leaning into equities even as policy uncertainty lingers and earnings season looms.

Our FTinvest 11 model portfolio closed slightly lower on the day, slipping 0.09% to finish at 851.10. Trading was relatively muted, with the index holding a narrow range for most of the session. While individual names showed pockets of strength, the overall tone remained cautious, reflecting a market more inclined to consolidate recent gains than push higher.

The close keeps FTInvest 11 within sight of its recent highs, underscoring that the modest decline was more about digestion of prior advances than any fundamental shift in sentiment.