US stocks surged to record highs on Wednesday even as the federal government entered its first shutdown in seven years, underscoring Wall Street’s confidence that the Federal Reserve will soon cut interest rates.The S&P 500 closed above 6,700 for the first time, rising 0.34%, while the Dow Jones Industrial Average notched its second straight record finish with a modest 0.1% gain. The Nasdaq Composite climbed 0.42%, erasing early-session losses. The gains followed the strongest third quarter for equities since 2020.
Markets largely brushed off the shutdown’s immediate impact, though economists caution that a prolonged stoppage could weigh on growth. The closure halts operations at key agencies, including the Bureau of Labor Statistics, which was expected to release September’s jobs report this week. Without that data, the Fed may have to navigate policy in a without data. So today traders looked to private ADP figures, which showed US employers shed 32,000 jobs in September which is a sharp miss compared to expectations for a 50,000 gain. The weak report bolstered expectations for monetary easing.
The lesson I always fail to learn is bad news for the economy and everyday life is good for stocks. Bad data means rate cuts which makes stocks look more attractive. High profits means we pay more, but more share holder value is increased. I feel the economy is cooked which means I guess I'll my stocks will increase...
