Traders work on the floor of the New York Stock Exchange.
NYSE
The S&P 500 rose slightly on Tuesday as Wall Street looked for more developments out of Washington on the current U.S. government shutdown that is now in its second week.
The broad market index climbed 0.1%, along with the Nasdaq Composite. The Dow Jones Industrial Average traded around the flatline.
Hopes that the government would reopen on Monday were dashed after the Senate for a fifth time failed to pass a House bill that would have funded the government through Nov. 21. The chamber voted mostly along party lines. At least eight Democrats need to join Republicans to meet the 60-vote necessary for advancing the legislation.
President Donald Trump once again blamed Democrats for the shutdown in a Truth Social post Monday evening, in which he wrote that he’s “happy to work with the Democrats on their Failed Healthcare Policies, or anything else, but first they must allow our Government to re-open.” The president had earlier that day suggested that talks with Democrats, who have demanded that any stopgap funding measure should include an extension of enhanced Obamacare tax credits, were taking place and paying off.
“We have a negotiation going on right now with the Democrats that could lead to very good things,” he said in the Oval Office. “And I’m talking about good things with regard to healthcare.”
However, that was later denied by Senate Minority Leader Chuck Schumer, D-N.Y., who said in a post on X Monday that “THIS ISN’T TRUE.”
“If Republicans are finally ready to sit down and get something done on health care for American families, Democrats will be there—ready to make it happen,” he added.
The uncertainty around the shutdown drove investors to hedge on riskier bets and move into safe-haven assets, leading gold futures to hit $4,000 per ounce for the first time.
The shutdown, which stretched into its seventh day Tuesday, has delayed the release of key economic data, such as the September jobs report that was expected Friday, and therefore lessened the amount of information available for the Federal Reserve ahead of its next interest rate decision. A longer shutdown coupled with this data blackout comes at a time when risks to the labor market and inflation remain top-of-mind.
This could put more investor attention on the Fed minutes due Wednesday afternoon as well as commentary expected this week from several Fed officials, including Vice Chair Michelle Bowman, Governor Stephen Miran and Minneapolis Fed President Neel Kashkari.
Enthusiasm about an upcoming Fed rate cut and a potential acceleration in mergers and acquisitions activity propelled stocks to new heights Monday, with the S&P 500 and the Nasdaq scoring new all-time closing highs that day.