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The S&P 500 closed at a record high on Wednesday as traders were hopeful that a U.S. federal government shutdown would be brief and possibly have little impact on the economy.
The Dow Jones Industrial Index advanced 43.21 points to 46,441.10.
The much-broader index recovered 22.74 points to 6,711.20, led by a boost in health-care stocks.
The tech-heavy NASDAQ climbed 95.15 points to 22,755.16.
It was a notable turnaround. At its low of the day, the S&P 500 was down 0.5%. The index’s move higher was 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 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 4.10% from Tuesday’s 4.15%. Treasury prices and yields move in opposite directions.
Oil prices shed 41 cents to $61.96 U.S. a barrel.
Gold prices hiked $20.60 to $3,893.80 U.S. an ounce.
