Stocks Rise Despite Looming Shutdown Risk
NEW YORK, Sept 29 – U.S. stocks closed higher friday despite the growing threat of a government shutdown as Congress struggled to reach a funding agreement before the weekend deadline. The Dow Jones Industrial Average gained 85.61 points, or 0.26%, to 33,839.08, the S&P 500 rose 14.49 points, or 0.33%, to 4,320.06, and the Nasdaq Composite added 64.98 points, or 0.48%, to 13,484.79.
The surprising market resilience comes as lawmakers face a potential shutdown starting Sunday if they fail to pass legislation funding federal agencies.A shutdown would halt non-essential government services, impacting federal employees and possibly slowing economic growth. while shutdowns are frequently enough temporary, they create uncertainty and can weigh on consumer and business confidence. Investors appear to be betting on a short-lived disruption, or factoring in the possibility of a last-minute deal.
Despite the political uncertainty, market analysts point to strong economic data and corporate earnings as supporting factors. Recent reports indicate a resilient U.S. economy, with a robust labor market and moderating inflation. This has fueled optimism among investors, even as the Federal Reserve maintains a hawkish stance on monetary policy.
Treasury yields also saw movement, with the 10-year Treasury yield hitting 4.60%, its highest level since 2007. Oil prices rose, with Brent crude settling at $95.82 a barrel.
Looking ahead, the focus will remain on Washington as lawmakers attempt to avert a shutdown. The outcome will have notable implications for the U.S. economy and financial markets. Investors will also be closely watching upcoming economic data releases and corporate earnings reports for further clues about the health of the economy.
Jamie McGeever has been a financial journalist since 1998, reporting from Brazil, Spain, New York, London, and now back in the US again. His experience and expertise are in global markets, economics, policy, and investment. Jamie’s roles across text and TV have included reporter, editor, and columnist, and he has covered key events and policymakers in several cities around the world.
