Wall Street ended mixed on Wednesday, with the Dow Jones closing at a record high while the Nasdaq slipped, as investors rotated out of high-priced technology stocks and focused on the anticipated resolution of the historic U.S. government shutdown.
The House of Representatives was expected to approve a stopgap funding bill to end the record-long shutdown, restoring federal food aid, government paychecks, and air traffic control operations. “This should be a positive development for sentiment, removing one of the key risks in the market. The proper functioning of the government and the airline system is vital for the broader economy,” said Bill Northey, senior investment director at U.S. Bank Wealth Management.
Strong gains of about 3.5% each in Goldman Sachs and UnitedHealth Group helped the Dow close at a record high for a second straight day. The index is now up roughly 13% in 2025, compared with a 17% rise in the S&P 500.
Tech giants were under pressure, with Amazon and Tesla falling around 2% each, Palantir down 3.6%, and Oracle sliding 3.9%. Meanwhile, AMD jumped 9% after announcing a $100 billion data-center revenue target.
“We’re seeing some rotation away from tech-heavy Nasdaq leadership toward sectors like healthcare and financials,” said Matt Stucky, chief equity portfolio manager at Northwestern Mutual. “For the market to broaden out, earnings will need to broaden as well.”
SoftBank’s $5.8 billion sale of its Nvidia stake earlier this week rattled investors, sparking concerns that the AI boom might be losing steam. Nvidia’s earnings report next Wednesday will serve as a key test of investor sentiment toward the sector.
At the close, the S&P 500 gained 0.06% to finish at 6,850.92, the Nasdaq slipped 0.26% to 23,406.46, and the Dow climbed 0.68% to 48,254.82.
Six of the 11 S&P 500 sectors advanced, led by healthcare with a 1.36% gain, followed by financials up 0.9%. Trading volume was light, with 17.2 billion shares changing hands, compared to a 20-day average of 20.5 billion.
Shutdown weighs on economy
The prolonged shutdown has taken a toll on the economy, creating a data vacuum for both the Federal Reserve and investors, forcing them to rely more on private indicators.
ADP’s latest update showed private employers cutting an average of 11,250 jobs per week in the four weeks ending October 25, signaling continued weakness in the labor market.
According to CME Group’s FedWatch tool, traders are pricing in a 65% chance of a quarter-point rate cut at the Fed’s December meeting. Meanwhile, Atlanta Fed President Raphael Bostic announced plans to retire when his term ends in February amid speculation about potential political influence over the central bank.
Advancing stocks outnumbered decliners on the S&P 500 by roughly 1.5 to 1. The index posted 36 new highs and two new lows, while the Nasdaq recorded 102 new highs and 103 new lows.
