U.S. equity futures were modestly higher early Friday, suggesting the market could build on its record-setting run even as the government shutdown drags on with no clear resolution in sight.
Markets Defy Political Gridlock
The rally in stocks has persisted despite warnings from policymakers that the standoff in Washington could weigh on the broader economy. Treasury Secretary Scott Bessent reiterated those concerns in a television interview.
“This isn’t the way to have a discussion, shutting down the government and lowering the GDP,” Bessent said on CNBC’s Squawk Box. “We could see a hit to the GDP, a hit to growth and a hit to working America.”
The shutdown has already delayed key government reports, including the highly anticipated monthly payrolls data originally scheduled for release Friday.
“There is growing expectation that the shutdown in Washington might continue until mid-October, with the scheduled jobs report due out today unlikely to be released,” said Russ Mould, investment director at AJ Bell.
He added, “How long investors remain relaxed about this state of affairs remains hard to predict, but one worry is that it makes it significantly harder for the Federal Reserve to make informed decisions around interest rates.”
Indices Stretch Rally to Record Highs
Thursday’s session saw swings in trading before another positive finish, marking five consecutive gains for the major indexes. The Nasdaq rose 88.89 points, or 0.4%, to close at 22,844.05. The Dow added 78.62 points, or 0.2%, ending at 46,519.72, while the S&P 500 advanced 4.15 points, or 0.1%, to settle at 6,715.35.
Artificial intelligence optimism continued to fuel tech names. Nvidia (NASDAQ:NVDA) inched up 0.9% to a fresh record, while Advanced Micro Devices (NASDAQ:AMD) jumped 3.5%.
Momentum followed reports that OpenAI has struck a deal valuing the company at $500 billion, surpassing Elon Musk’s SpaceX as the world’s most valuable privately held business. Current and former employees sold roughly $6.6 billion worth of stock in the transaction.
“Reports suggest there was appetite for nearly twice as many as the actual number of shares on offer,” Mould noted.
Political Stalemate Deepens
With the shutdown now in its second day, lawmakers remain at an impasse. The Senate adjourned Thursday without votes due to the Yom Kippur holiday, with plans to reconvene Friday.
President Donald Trump tried to frame the situation as a political advantage, posting on Truth Social that the shutdown gives him an “unprecedented opportunity” to cut federal agencies tied to Democratic priorities.
In addition to payrolls, Thursday’s reports on weekly jobless claims and factory orders have also been postponed indefinitely.
Sector Movers
Semiconductor stocks gained momentum, pushing the Philadelphia Semiconductor Index up 1.9% to an all-time closing high. Airline shares also advanced, with the NYSE Arca Airline Index up 1.2% after recent weakness.
On the downside, energy producers lagged as crude prices retreated, dragging the Philadelphia Oil Service Index lower by 2.5% and the NYSE Arca Oil Index down 1.2%. Pharmaceuticals also gave back recent gains, slipping 1% as tracked by the NYSE Arca Pharmaceutical Index.
Advanced Micro Devices stock price
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