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The S&P 500 rose on Wednesday following the latest U.S. government shutdown as traders anticipated that the funding lapse will be brief.
The Dow Jones Industrial Index advanced 79.2 points to 46,477.09.
The much-broader index recovered 7.92 points to 6,696.38, led by a boost in health-care stocks, with big gains in Regeneron Pharmaceuticals and Moderna. Markets are coming off a banner month that saw the S&P 500 rise more than 3.5%.
The tech-heavy NASDAQ climbed 42.48 points to 22,638.85.
The U.S. government shut down after attempts made by the Republican-controlled Senate to secure a temporary spending bill failed on Tuesday. Democrats are hoping to use the measure to codify an extension of health care tax credits for millions of Americans.
The stock market has typically glided through previous government shutdowns, but this one could be riskier, given the slew of economic factors at play. Investors remain worried about a slowing labour market and inflation risks as well as historically elevated stock valuations and market concentration levels.
Data from processing firm ADP showed that private payrolls fell by 32,000 last month, well below the gain of 45,000 that economists polled by Dow Jones had estimated.
This reading, which signifies the biggest drop since March 2023, takes on even greater importance now that there’s an economic data blackout because of the shutdown.
Prices for the 10-year Treasury recovered, lowering yields to 4.12% from Tuesday’s 4.15%. Treasury prices and yields move in opposite directions.
Oil prices shed 48 cents to $61.89 U.S. a barrel.
Gold prices hiked $19.40 to $3,892.60 U.S. an ounce.
