Wall Street Surges as Healthcare Stocks Rally Amid Shutdown Jitters
BREAKING: U.S. stocks surged today, with the Dow Jones Industrial Average climbing 73 points to 46,471 as investors shake off concerns surrounding the first government shutdown since the pandemic. The S&P 500 reached a new record high, adding 25 points to close at 6,713.
Despite an initial drop triggered by Congress’s failure to reach a last-minute funding deal, equities rebounded quickly as market participants viewed the shutdown as temporary. The partial government closure, confirmed earlier today, is expected to have limited immediate economic impact, allowing investors to focus on promising labor market data.
The ADP Employment Report revealed a drop of 33,000 jobs in September, primarily among small and medium-sized firms, while larger businesses added modestly to payrolls. This news, combined with a sluggish ISM Manufacturing Index showing new orders slipping into contraction, contributed to a decline in Treasury yields. The 10-year Treasury yield fell 5 basis points to 4.10%, and the 2-year dropped 7 basis points to 3.54%.
Healthcare stocks led the market rally, buoyed by Pfizer’s game-changing $5 billion Metsera deal and new White House initiatives on drug pricing. Utilities also performed well, with BlackRock’s Global Infrastructure Partners nearing a significant $38 billion acquisition of AES.
Consumer discretionary stocks saw impressive gains as well, with Nike surging over 5% following strong earnings. Tesla and Etsy also extended their recent upward trends. In commodities, gold climbed $19 to $3,893 an ounce, and Bitcoin spiked nearly $3,000 to reach around $117,200. However, ICE Brent crude slipped $0.70 to $65.33 a barrel.
As the third quarter closes, the S&P 500 has risen 3.5% in September and nearly 8% for Q3, defying typical seasonal trends. The Russell 2000 outperformed with a remarkable 12% quarterly gain, driven by thematic trades in nuclear, quantum computing, and digital assets.
Looking ahead, trading volumes are expected to thin as Yom Kippur begins at sundown, and with China closed for Golden Week, market activity may quiet further. Importantly, analysts from Fitch Ratings commented on the government shutdown, stating it highlights “ongoing governance challenges” but does not pose immediate risks to U.S. creditworthiness.
Stay tuned for further updates as this developing situation unfolds and market reactions continue to evolve.
