The Dow Jones Industrial Average posted its first record close above 48,000 on Wednesday, extending its gains from the previous session, as Wall Street anxiously awaited a potential end to the record U.S. government shutdown.
The Dow, which includes 30 stocks, closed up 326.86 points, or 0.68%, at 48,254.82, hitting a new intraday session high. The S&P 500 traded around flat, rising 0.06% to 6,850.92, while the Nasdaq Composite fell 0.26% to end at 23,406.46.
Investors are watching Washington, as the federal government could reopen as early as the end of this week. The Senate passed the spending bill Monday night, which has since moved to the House of Representatives for a final vote. House Majority Leader Steve Scalise, R-La., told CNBC on Wednesday that he expects the chamber to vote on the bill around 7 p.m. ET.
“We’re currently in the longest shutdown in history,” said Josh Chastant, public investment portfolio manager at GuideStone Funds, adding that “it would certainly be welcome to start seeing” more economic data releases given signs of weakness in the labor market, SEEbiz reported. “Right now the focus is on getting through that now, and then when the terms of the reopening are finally decided, maybe there’s something to worry about as we think about extending into January.”
As investors brace for an end to the current shutdown, now into its 43rd day, the latest market moves reflect “sort of a split day,” Chastant said, noting that investors’ hopes for a reopening could be seen in the day’s gains in key financial names.
The outperformance of the Dow Jones was supported by those in the sector such as Goldman Sachs, JPMorgan and American Express. All three stocks hit new highs during the day. Other stocks whose fortunes are closely tied to the economy, such as Caterpillar, also rose.
Bank stocks in the broader market joined Goldman, JPMorgan and American Express in gains. Along with those names, Morgan Stanley, Wells Fargo and Bank of America hit new highs. The Financial Select SPDR Fund (XLF), which tracks the S&P 500 financial sector, rose 1%.
Outside of financials, AI trading continued the streak of volatility seen this month, as there remains an uneasy feeling among investors that the valuations of tech companies could be stretched after recent gains. Shares of Advanced Micro Devices rose 8%, but others such as Oracle and Palantir Technologies were lower.
