Last Updated on October 1, 2025 4:56 pm by BIZNAMA NEWS
BIZ DESK
Wall Street closed higher on Tuesday after a volatile trading session, as investors weighed the economic fallout of the newly triggered U.S. government shutdown. Despite heightened political uncertainty, the Dow Jones Industrial Average advanced 0.2% to 46,398, the S&P 500 gained 0.4% to 6,688, and the Nasdaq Composite rose 0.3% to 22,660.
The rally came as Congress failed to pass a funding bill, forcing parts of the federal government to shut down from October 1. This marks one of the most severe standoffs in recent years, with federal agencies warning of service disruptions, delayed pay for workers, and even potential layoffs rather than temporary furloughs.
For investors, a key concern is the delay of crucial economic data releases, including September’s nonfarm payrolls and inflation figures, which are vital for gauging the Federal Reserve’s next policy moves. The uncertainty has sparked a surge in safe-haven demand, sending gold prices to record highs and pressuring the U.S. dollar.
Technology stocks helped buoy the market, with Nvidia hitting a fresh all-time high on sustained optimism around artificial intelligence. Pfizer also jumped over 5% after announcing tariff relief measures and discounted drug access via a new healthcare platform.
While Wall Street showed resilience, analysts warn that prolonged political gridlock could dent consumer confidence, stall business investment, and weigh on U.S. growth. Investors also remain focused on the Federal Reserve’s stance, as officials balance cooling inflation against risks of slowing economic momentum.
Notably, despite Washington’s turmoil, U.S. equities remain on track for a fifth consecutive monthly gain, underpinned by strong corporate earnings and AI-driven tech momentum. The coming days will test whether markets can sustain this rally—or whether the shutdown escalates into a broader economic headwind.
