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Stocks rose to record highs Friday as Wall Street headed for solid weekly gains even with a U.S. government shutdown dragging on.
The Dow Jones Industrial Index shot up 520.76 points, or 1.1%, to move into the afternoon session at 47,040.48.
The S&P 500 gained 35.13 points to 6,750.48
The tech-heavy NASDAQ gathered surged 65.54 points to 22,909.58.
With Friday’s gains, the three leading indexes are pacing for a positive weekly finish. The broad market S&P 500 has risen more than 1% week to date, along with the 30-stock Dow.
USA Rare Earth jumped $4.38, or 19.6%, to $27.16, after CEO Barbara Humpton told reporters that the company is in “close communication” with the White House.
GameStop stock fell 64 cents, or 2.4%, to $26.58, after the company said in a filing it’s selling a combination of assets ranging from common stock to debt for an undisclosed amount.
Berenberg has initiated coverage of Italian supercar Ferrari maker with a buy rating U.S.-listed shares of Ferrari are up 18.7% year to date. The stock entered noon hour Friday down $1.06 to $503.03.
The government shutdown entered its third day Friday and has exacerbated investors’ underlying concerns this year about macroeconomic and policy headwinds, inflation risks and a slowing labour market.
Investors are waiting to see how long the shutdown will persist to gauge the seriousness of its economic repercussions. Shutdowns have not been market-moving events in the past.
The shutdown has led to an economic data blackout, and the Labor Department’s pause on virtually all activity has blocked the Friday release of the September non-farm payrolls report.
While that removes a factor that could lend pressure to stocks, it simultaneously lessens the amount of economic data the Federal Reserve can factor into its interest rate decision at its October meeting.
Prices for the 10-year Treasury lost their edge by noon Friday, hoisting yields to 4.12% from Thursday’s 4.09%. Treasury prices and yields move in opposite directions.
Oil prices gained 68 cents to $61.16 U.S. a barrel.
Gold prices took on $45.10 to $3,913.20 U.S. an ounce.
