US Stock Market Today: S&P 500, Dow, and Nasdaq Struggle as Government Shutdown Impacts Economic Data

US stocks moved cautiously on Wednesday as investors balanced optimism around artificial intelligence with concerns over the ongoing government shutdown. The S&P 500 remained little changed at midday, while the Nasdaq 100 gained 0.2% and the Dow Jones Industrial Average slipped 0.1%. European markets showed modest strength, with the Stoxx Europe 600 advancing 0.5%. The MSCI World Index posted minimal movement. 

Technology shares provided support after OpenAI’s secondary share sale pushed its valuation to $500 billion, reinforcing enthusiasm for the sector. However, Tesla shares were down 2.7% despite a surprise increase in vehicle sales in the quarter, as investors voiced concerns about demand for electric vehicles more broadly. Meanwhile, Occidental Petroleum gained on news that Berkshire Hathaway agreed to a $9.7 billion deal to buy its petrochemical business.

Currency, Bond, and Commodity Movements

Following four sessions of declines, the Bloomberg Dollar Spot Index gained 0.3% in currency markets. The euro decreased 0.3% to $1.1698 and the British pound fell 0.4% to $1.3424. The Japanese yen weakened 0.2%, trading at 147.34 per dollar.

In bonds, the US 10-year Treasury yield steadied at 4.10%. Germany’s 10-year yield edged down by one basis point to 2.70%, while the UK 10-year yield rose one basis point to 4.71%. Commodities showed pressure as oil and gold prices retreated. West Texas Intermediate crude fell 1.5% to $60.85 a barrel, its lowest level in four months, amid expectations that OPEC+ would restore supply. Spot gold declined 0.9% to $3,829.74 an ounce, cooling after a recent rally.

On the other hand, cryptocurrencies soared, with Bitcoin rising 2% to $120,000 and Ether increasing 2.5% to $4,445.

Impact of Government Shutdown

The US government shutdown entered its second day, disrupting economic data releases. Weekly jobless claims and factory orders were delayed, and nonfarm payrolls data may also be delayed. Analysts said a prolonged shutdown could hinder the Federal Reserve's decision-making, particularly given that inflation reports could be delayed. Treasury Secretary Scott Bessent warned that a prolonged shutdown could slow economic growth.

Despite the political uncertainty, money markets continued to price in a quarter-point rate cut at the end of the month, with an 80% chance of an additional reduction in December. Strategists at Charles Schwab and JPMorgan cited signs of cyclical weakness in the labor market, such as muted wage growth, as sources of expectations for easing:

Corporate Highlights

In corporate developments, Fair Isaac introduced a program enabling mortgage lenders to deliver FICO scores directly to consumers. The move pressured shares of credit reporting firms TransUnion and Equifax. Separately, German language AI company DeepL began exploring a potential US initial public offering.

Other notable stock moves included Stellantis NV, which gained after reporting stronger US deliveries, and Rivian Automotive, which fell after cutting its full-year delivery outlook. Planet Labs rose following an upgraded target from Wedbush, while Bloom Energy declined after a downgrade by Mizuho Securities.

Also Read: Nike’s Q1 Revenue Tops $11.7 Billion, Tariffs May Cut $1.5 Billion From Margins