U.S. stocks ended a turbulent week on a mixed note Friday, with the Nasdaq closing lower while the S&P 500 and Dow Jones eked out late gains. Investors grappled with economic uncertainty, record-high tech valuations, and the longest federal government shutdown in U.S. history, all of which dampened risk appetite.
All three indexes were sharply lower earlier in the session but pared losses after reports suggested progress in congressional talks to end the shutdown.
“A resolution to the shutdown will clearly improve sentiment,” said Terry Sandven of U.S. Bank Wealth Management. “Stocks are at all-time highs, valuations are stretched, and resolving this uncertainty removes a major overhang.”
For the week, all major indexes lost ground, with the Nasdaq posting its steepest decline since early April, as investors reassessed lofty AI-driven stock valuations that had fueled recent rallies.
Consumer sentiment also reflected growing unease. The University of Michigan’s November survey fell to its lowest level in over three years, with assessments of current conditions hitting a record low. The ongoing shutdown has also halted key economic data releases, leaving the Federal Reserve “flying blind” in assessing growth and inflation trends.
“Investors are uneasy without clear data,” said Ryan Detrick of Carson Group. “The labor market is softening, and uncertainty is prompting a ‘sell first, ask later’ mindset.”
Market Highlights
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Dow Jones Industrial Average: +0.16% to 46,987.10
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S&P 500: +0.13% to 6,728.80
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Nasdaq Composite: −0.21% to 23,004.54
Corporate Movers
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Tesla fell 3.7% despite shareholder approval of Elon Musk’s record pay package.
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Microchip Technology dropped 5.2% after weak sales guidance.
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Expedia jumped 17.6% on strong business-to-business bookings.
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Block tumbled 7.7% after missing profit estimates.
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Take-Two Interactive slid 8.1% following news that Grand Theft Auto VI will now debut in November 2026.
Earnings season is nearly complete, with 83% of S&P 500 firms beating expectations, according to LSEG data. Analysts now forecast 16.8% year-on-year earnings growth for Q3 — double the previous quarter’s pace.
Despite near-term jitters, analysts see the recent volatility as a normal phase in an extended bull market. As Sandven noted, “Ups and downs are part of the natural rhythm of a healthy market.”
