US close: Stocks stage late rally as investors shrug off shutdown woes

(Sharecast News) - US stocks finished with small gains on Tuesday, sending the Dow to a new record high, despite heightened political uncertainty ahead of a looming government shutdown.

The Dow edged 0.2% higher to finish at a new high of 46,397.89, while the Nasdaq gained 0.3% and the S&P 500 rose 0.4%, with the latter two indices closing just below their respective peaks.

Despite the positive finish, gains were limited in the absence of a last-minute budget deal between Democrats and Republicans, with a shutdown likely as both sides traded public insults and played the blame game regarding a lack of progress in negotiations. As it stands, US government funding will cease at midnight, with all non-essential public sector workers temporarily put on leave.

"Wall Street has been fairly subdued as investors consider the implications of a government shutdown if an agreement on Donald Trump's 'big, beautiful bill' can't be reached with Democrats," said AJ Bell head of financial analysis Danni Hewson.

The Labor Department said it will withhold all scheduled data releases, including Friday's nonfarm payrolls report, if a government shutdown can not be averted.

Trump warned over the weekend that mass federal job cuts could follow if lawmakers fail to reach an agreement. While shutdowns have historically had limited impact on financial markets, analysts cautioned that delays to key economic indicators, such as Friday's non-farm payrolls report, could cloud the Federal Reserve's interest rate outlook and weigh on investor sentiment.

Economic data mixed

In economic data on Tuesday, the Conference Board's consumer confidence index fell 3.6 points to 94.2 this month, down from 97.8 in August. This was below the consensus forecast of 96.0 and the lowest level since April, with concerns about job availability and the current economic environment dampening the mood.

The S&P/Case-Shiller 20-city home price index rose 1.8% year-on-year in July, the smallest gain since July 2023, after a 2.2% increase in June, and compared to forecasts of 1.6%. New York again reported the highest annual gain among the 20 cities, up 6.4%, followed by Chicago at 6.2%, while Cleveland, Boston and Detroit also posted solid increases of about 4%. By contrast, Tampa home prices fell 2.8% year-on-year and Phoenix slipped to -0.9%, officially turning negative.

Elsewhere, the Chicago business barometer fell to 40.6 in September, according to the Institute for Supply Management, down from 41.5 in August and well below market expectations for an improvement to 43. September's reading reflected the sharpest contraction in activity in three months and marked the 22nd consecutive reading below the neutral threshold of 50.

Finally, US job openings increased by 19,000 to 7.22m in August, according to the Bureau of Labor Statistics, in line with market expectations. Job openings decreased in construction and in the federal government, while both hires and total separations were little changed at 5.1m.

Market movers

Energy stocks were weaker as oil prices fell sharply on speculation of increased supply from OPEC+ nations. WTI crude was down 1.6% at $62.42 a barrel, hitting a three-week low. Exxon Mobil, ConocoPhillips and Chevron all finished lower.

Exxon Mobil was also making headlines after an internal memo seen by Bloomberg announced plans to cut 2,000 jobs as part of a global efficiency drive. The company said it is planning to consolidate smaller offices into regional hubs, with the move thought to be a part of the its ongoing simplification programme that's been in place since 2019.

Music streaming giant Spotify dropped on the news that founder Daniel Ek will step down from his role as chief executive to become executive chairman with effect from 1 January 2026. Spotify has appointed Gustav S�derstr�m, co-president and chief product and technology officer, and Alex Norstr�m, co-president and chief business officer, as its co-chief executive officers.

Pharma giant Pfizer rose strongly after announcing a deal with the Trump administration to offer some of its products at a reduced price on a new government-run, direct-to-consumer website called TrumpRx in return for a three-year exemption from trade tariffs.

S&P 500 - Risers

Illumina Inc. (ILMN) $94.96 4.35%

Amgen Inc. (AMGN) $282.14 3.95%

Micron Technology Inc. (MU) $167.37 3.00%

Biogen Inc (BIIB) $140.04 2.96%

Xcel Energy Inc. (XEL) $80.62 2.44%

News Corp Class B (NWS) $34.58 2.23%

Nvidia Corp. (NVDA) $186.57 2.20%

Alliant Energy Corp. (LNT) $67.39 2.15%

Monster Beverage Corp (MNST) $67.32 2.08%

Willis Towers Watson Public Limited Company (WTW) $345.39 1.66%

S&P 500 - Fallers

TripAdvisor Inc. (TRIP) $16.26 -4.63%

Expedia Group Inc. (EXPE) $213.75 -4.17%

Broadcom Inc. (AVGO) $329.74 -3.04%

Nektar Therapeutics (NKTR) $56.88 -2.98%

Ipg Photonics Corp. (IPGP) $79.29 -2.82%

Skyworks Solutions Inc. (SWKS) $76.97 -2.67%

Adobe Systems Inc. (ADBE) $352.74 -2.64%

Qorvo, Inc. (QRVO) $91.00 -2.16%

PACCAR Inc. (PCAR) $98.32 -2.07%

VeriSign Inc. (VRSN) $279.61 -1.79%

Nasdaq 100 - Risers

Illumina Inc. (ILMN) $94.96 4.35%

Amgen Inc. (AMGN) $282.14 3.95%

Sirius XM Holdings Inc (SIRI) $23.27 3.28%

Micron Technology Inc. (MU) $167.37 3.00%

Biogen Inc (BIIB) $140.04 2.96%

Nvidia Corp. (NVDA) $186.57 2.20%

Monster Beverage Corp (MNST) $67.32 2.08%

Costco Wholesale Corp. (COST) $925.53 1.59%

Intuitive Surgical Inc. (ISRG) $447.18 1.53%

CSX Corp. (CSX) $35.49 1.41%

Nasdaq 100 - Fallers

Expedia Group Inc. (EXPE) $213.75 -4.17%

Broadcom Inc. (AVGO) $329.74 -3.04%

Skyworks Solutions Inc. (SWKS) $76.97 -2.67%

Adobe Systems Inc. (ADBE) $352.74 -2.64%

Baidu Inc. (BIDU) $131.77 -2.48%

Workday, Inc. (WDAY) $240.79 -2.13%

PACCAR Inc. (PCAR) $98.32 -2.07%

Paypal Holdings Inc (PYPL) $67.07 -1.73%

Qvc Group Inc Series A (QVCGA) $13.40 -1.62%

Marriott International - Class A (MAR) $260.43 -1.54%