{"id":202279,"date":"2025-10-04T21:58:19","date_gmt":"2025-10-04T21:58:19","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/202279\/"},"modified":"2025-10-04T21:58:19","modified_gmt":"2025-10-04T21:58:19","slug":"why-stocks-keep-hitting-record-highs-in-the-middle-of-a-government-shutdown","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/202279\/","title":{"rendered":"Why stocks keep hitting record highs in the middle of a government shutdown"},"content":{"rendered":"<p>      New York<br \/>\n        \u00a0\u2014\u00a0<\/p>\n<p class=\"paragraph-elevate inline-placeholder vossi-paragraph\" data-uri=\"cms.cnn.com\/_components\/paragraph\/instances\/cmg9mr973002r2cqq5brocr3m@published\" data-editable=\"text\" data-component-name=\"paragraph\" data-article-gutter=\"true\">\n            Stocks ended the day mixed on Friday as investors continue to brush off concerns about the government shutdown.\n    <\/p>\n<p class=\"paragraph-elevate inline-placeholder vossi-paragraph\" data-uri=\"cms.cnn.com\/_components\/paragraph\/instances\/cmgb29wyo000f356nxg4go473@published\" data-editable=\"text\" data-component-name=\"paragraph\" data-article-gutter=\"true\">\n            The Dow closed higher by 239 points, or 0.51%, after rising as much as 530 points earlier. The S&amp;P 500 was relatively flat and closed higher by just 0.01%. Meanwhile, the tech-heavy Nasdaq Composite fell 0.28%.\n    <\/p>\n<p class=\"paragraph-elevate inline-placeholder vossi-paragraph\" data-uri=\"cms.cnn.com\/_components\/paragraph\/instances\/cmgb2bnd00001356ngq1889ah@published\" data-editable=\"text\" data-component-name=\"paragraph\" data-article-gutter=\"true\">\n            Stocks have moved higher in recent weeks due to relatively strong corporate earnings, enthusiasm about artificial intelligence and hopes for Federal Reserve rate cuts.\n    <\/p>\n<p class=\"paragraph-elevate inline-placeholder vossi-paragraph\" data-uri=\"cms.cnn.com\/_components\/paragraph\/instances\/cmgb2jmut0000356nm7rmwc03@published\" data-editable=\"text\" data-component-name=\"paragraph\" data-article-gutter=\"true\">\n            The Dow led the market higher on Friday as the rally broadened out to left-behind sectors while tech investors took some profits. The Dow and S&amp;P 500 clinched fresh record highs.\n    <\/p>\n<p class=\"paragraph-elevate inline-placeholder vossi-paragraph\" data-uri=\"cms.cnn.com\/_components\/paragraph\/instances\/cmgavhvr7001c356n0g25ighr@published\" data-editable=\"text\" data-component-name=\"paragraph\" data-article-gutter=\"true\">\n            History shows that stocks are usually unaffected by shutdowns, which tend to be short lived and have minimal long-term effect on the economy.\n    <\/p>\n<p class=\"paragraph-elevate inline-placeholder vossi-paragraph\" data-uri=\"cms.cnn.com\/_components\/paragraph\/instances\/cmgb29v3o000d356nne34dfaf@published\" data-editable=\"text\" data-component-name=\"paragraph\" data-article-gutter=\"true\">\n            \u201cHistory essentially says that government shutdowns have been more headline events than bottom-line-affecting events,\u201d said Sam Stovall, chief investment strategist at CFRA Research.\n    <\/p>\n<p class=\"paragraph-elevate inline-placeholder vossi-paragraph\" data-uri=\"cms.cnn.com\/_components\/paragraph\/instances\/cmgb217vf0003356nidpca00i@published\" data-editable=\"text\" data-component-name=\"paragraph\" data-article-gutter=\"true\">\n            While the Dow is looking past concerns, Wall Street is also dealing with a government data blackout that has left investors without the usual gold-standard indicators of the health of the economy.\n    <\/p>\n<p class=\"paragraph-elevate inline-placeholder vossi-paragraph\" data-uri=\"cms.cnn.com\/_components\/paragraph\/instances\/cmgauyk5u0000356n7ue07mic@published\" data-editable=\"text\" data-component-name=\"paragraph\" data-article-gutter=\"true\">\n            The crucial monthly jobs report from the Bureau of Labor Statistics was not published Friday and is among the data that will be delayed at least until the <a href=\"https:\/\/www.cnn.com\/politics\/live-news\/government-shutdown-news-10-03-25\" rel=\"nofollow noopener\" target=\"_blank\">government shutdown<\/a> ends.\n    <\/p>\n<p class=\"paragraph-elevate inline-placeholder vossi-paragraph\" data-uri=\"cms.cnn.com\/_components\/paragraph\/instances\/cmgaveutg0015356nim9p08km@published\" data-editable=\"text\" data-component-name=\"paragraph\" data-article-gutter=\"true\">\n            The lack of government data leaves investors, economists and policymakers with a murkier view of the economy at a crucial moment when concerns are mounting about a weaker labor market and stickier inflation.\n    <\/p>\n<p class=\"paragraph-elevate inline-placeholder vossi-paragraph\" data-uri=\"cms.cnn.com\/_components\/paragraph\/instances\/cmgavdw6w0013356nwvzdv812@published\" data-editable=\"text\" data-component-name=\"paragraph\" data-article-gutter=\"true\">\n            If the shutdown drags on, the lack of government data could strain investors\u2019 understanding of the health of the labor market and path of inflation at a time when stocks are <a href=\"https:\/\/www.cnn.com\/2025\/09\/02\/economy\/us-stock-market\" rel=\"nofollow noopener\" target=\"_blank\">historically expensive<\/a> and vulnerable to a surprise.\n    <\/p>\n<p class=\"paragraph-elevate inline-placeholder vossi-paragraph\" data-uri=\"cms.cnn.com\/_components\/paragraph\/instances\/cmgav8ttp000x356n9wb8jpue@published\" data-editable=\"text\" data-component-name=\"paragraph\" data-article-gutter=\"true\">\n            \u201cThere\u2019s no good time for a shutdown, but this one is particularly ill-timed. The lack of updated labor data coincides with other signs of fragility in the economy,\u201d Mark Hamrick, senior economist analyst at Bankrate, said in an email.\n    <\/p>\n<p class=\"paragraph-elevate inline-placeholder vossi-paragraph\" data-uri=\"cms.cnn.com\/_components\/paragraph\/instances\/cmgavbt8p0010356nnkb53dhy@published\" data-editable=\"text\" data-component-name=\"paragraph\" data-article-gutter=\"true\">\n            Government agencies including the BLS, Bureau of Economic Analysis and Census Bureau said they are postponing publication of data until after the shutdown ends.\n    <\/p>\n<p class=\"paragraph-elevate inline-placeholder vossi-paragraph\" data-uri=\"cms.cnn.com\/_components\/paragraph\/instances\/cmgavhrxu001a356napnpq287@published\" data-editable=\"text\" data-component-name=\"paragraph\" data-article-gutter=\"true\">\n            \u201cIt generates an uptick in uncertainty, because we\u2019re not getting the consistent economic clues that we\u2019re used to,\u201d said Jos\u00e9 Torres, senior economist at Interactive Brokers.\n    <\/p>\n<p class=\"paragraph-elevate inline-placeholder vossi-paragraph\" data-uri=\"cms.cnn.com\/_components\/paragraph\/instances\/cmgb29sb2000b356n8g9lck79@published\" data-editable=\"text\" data-component-name=\"paragraph\" data-article-gutter=\"true\">\n            The Dow and S&amp;P 500 hit three <a href=\"https:\/\/www.cnn.com\/2025\/10\/01\/investing\/us-stock-market-government-shutdown\" rel=\"nofollow noopener\" target=\"_blank\">record highs<\/a> on the first three days of the shutdown. The Dow, S&amp;P and Nasdaq each ended the week with gains of more than 1%.\n    <\/p>\n<p class=\"paragraph-elevate inline-placeholder vossi-paragraph\" data-uri=\"cms.cnn.com\/_components\/paragraph\/instances\/cmgb2h4ga0001356nwwmt95hk@published\" data-editable=\"text\" data-component-name=\"paragraph\" data-article-gutter=\"true\">\n            Still, risks remain: The absence of the jobs report and the potential for a lack of information going forward adds a fresh layer of uncertainty to markets and muddies the Fed\u2019s view of the economy.\n    <\/p>\n<p class=\"paragraph-elevate inline-placeholder vossi-paragraph\" data-uri=\"cms.cnn.com\/_components\/paragraph\/instances\/cmgax875d0000356ni83obm0p@published\" data-editable=\"text\" data-component-name=\"paragraph\" data-article-gutter=\"true\">\n            \u201cIt is more difficult than usual to measure the state of the US labor market, with gold-standard economic indicators produced by the federal government unavailable during the shutdown,\u201d Bill Adams, chief economist at Comerica Bank, said in a note.\n    <\/p>\n<p class=\"paragraph-elevate inline-placeholder vossi-paragraph\" data-uri=\"cms.cnn.com\/_components\/paragraph\/instances\/cmgavo10t001n356nwav8k4du@published\" data-editable=\"text\" data-component-name=\"paragraph\" data-article-gutter=\"true\">\n            The <a href=\"https:\/\/www.cnn.com\/2025\/10\/03\/business\/flood-insurance-rural-loans-government-shutdown\" rel=\"nofollow noopener\" target=\"_blank\">risks associated with the shutdown<\/a> grow as it continues, according to Keith Buchanan, senior portfolio manager at Globalt Investments.\n    <\/p>\n<p class=\"paragraph-elevate inline-placeholder vossi-paragraph\" data-uri=\"cms.cnn.com\/_components\/paragraph\/instances\/cmgavi8lu001j356n26k0axa0@published\" data-editable=\"text\" data-component-name=\"paragraph\" data-article-gutter=\"true\">\n            \u201cWe just feel like the market is being a little too sanguine,\u201d Buchanan said. \u201cWe don\u2019t think that the market appreciates the risk of a stickier, more contentious shutdown.\u201d\n    <\/p>\n<p>       <img decoding=\"async\" src=\"https:\/\/www.newsbeep.com\/us\/wp-content\/uploads\/2025\/10\/gettyimages-2238251449.jpg\" alt=\"The Bureau of Labor Statistics' monthly jobs report was not published on Friday because of the government shutdown, and will be delayed at least until the shutdown ends.\" class=\"image_large__dam-img image_large__dam-img--loading\" onload=\"this.classList.remove('image_large__dam-img--loading')\" onerror=\"imageLoadError(this)\" height=\"1334\" width=\"2000\" loading=\"lazy\"\/><\/p>\n<p class=\"paragraph-elevate inline-placeholder vossi-paragraph\" data-uri=\"cms.cnn.com\/_components\/paragraph\/instances\/cmgavxuip0021356nmf4z2lyx@published\" data-editable=\"text\" data-component-name=\"paragraph\" data-article-gutter=\"true\">\n            Investors and economists are stuck looking to other sources of data for information about the economy.\n    <\/p>\n<p class=\"paragraph-elevate inline-placeholder vossi-paragraph\" data-uri=\"cms.cnn.com\/_components\/paragraph\/instances\/cmgavr9te001q356nc0uydk3d@published\" data-editable=\"text\" data-component-name=\"paragraph\" data-article-gutter=\"true\">\n            On the labor market side, data from private payrolls firm ADP is one of the tools investors can focus on in the absence of the BLS report.\n    <\/p>\n<p class=\"paragraph-elevate inline-placeholder vossi-paragraph\" data-uri=\"cms.cnn.com\/_components\/paragraph\/instances\/cmgaw0yso002b356n1lelat3q@published\" data-editable=\"text\" data-component-name=\"paragraph\" data-article-gutter=\"true\">\n            ADP data published on Wednesday showed the private sector <a href=\"https:\/\/www.cnn.com\/2025\/10\/01\/economy\/adp-private-jobs-report-september\" rel=\"nofollow noopener\" target=\"_blank\">shed 32,000 jobs<\/a> in September. That spurred traders to ramp up bets that the Fed will cut rates in October, providing a boost for stocks.\n    <\/p>\n<p class=\"paragraph-elevate inline-placeholder vossi-paragraph\" data-uri=\"cms.cnn.com\/_components\/paragraph\/instances\/cmgaw1tel002g356nbxwcpmwb@published\" data-editable=\"text\" data-component-name=\"paragraph\" data-article-gutter=\"true\">\n            However, it\u2019s a sign that the labor market has deteriorated in recent months, and without the government data, Wall Street will be without the monthly gauge of the unemployment rate.\n    <\/p>\n<p class=\"paragraph-elevate inline-placeholder vossi-paragraph\" data-uri=\"cms.cnn.com\/_components\/paragraph\/instances\/cmgayokpb0000356new5n0wq1@published\" data-editable=\"text\" data-component-name=\"paragraph\" data-article-gutter=\"true\">\n            \u201cEconomists now lack official economic data from the US,\u201d Paul Donovan, chief economist at UBS Global Wealth Management, said in a note.\n    <\/p>\n<p class=\"paragraph-elevate inline-placeholder vossi-paragraph\" data-uri=\"cms.cnn.com\/_components\/paragraph\/instances\/cmgaw1rrv002d356naqxag7xq@published\" data-editable=\"text\" data-component-name=\"paragraph\" data-article-gutter=\"true\">\n            \u201cPrivate sector data is a poor substitute,\u201d Donovan said. \u201cPrivate data is like viewing the economy through a keyhole \u2014 clear, but with a narrow field of vision. Official data is like opening the door.\u201d\n    <\/p>\n<p class=\"paragraph-elevate inline-placeholder vossi-paragraph\" data-uri=\"cms.cnn.com\/_components\/paragraph\/instances\/cmgawm5yf000p356n8b4dlmn0@published\" data-editable=\"text\" data-component-name=\"paragraph\" data-article-gutter=\"true\">\n            Paul Christopher, head of global investment strategy at Wells Fargo Investment Institute, said in a note that he is advising clients to look past concerns about the shutdown.\n    <\/p>\n<p class=\"paragraph-elevate inline-placeholder vossi-paragraph\" data-uri=\"cms.cnn.com\/_components\/paragraph\/instances\/cmgawhjpr000g356nnnvrhmyw@published\" data-editable=\"text\" data-component-name=\"paragraph\" data-article-gutter=\"true\">\n            \u201cWe do not know how long the shutdown will last, but our guidance remains to look through the event to what we expect will be the main drivers of the economy and investment returns through the next 12-15 months,\u201d Christopher said.\n    <\/p>\n<p class=\"paragraph-elevate inline-placeholder vossi-paragraph\" data-uri=\"cms.cnn.com\/_components\/paragraph\/instances\/cmgawhj9c000e356nrhv81gq2@published\" data-editable=\"text\" data-component-name=\"paragraph\" data-article-gutter=\"true\">\n            Catalysts for stocks include a gradual reduction in trade policy uncertainty and expected Fed rate cuts, he said.\n    <\/p>\n<p class=\"paragraph-elevate inline-placeholder vossi-paragraph\" data-uri=\"cms.cnn.com\/_components\/paragraph\/instances\/cmgaw3rqp002m356nkv4a2mbj@published\" data-editable=\"text\" data-component-name=\"paragraph\" data-article-gutter=\"true\">\n            The monthly jobs report is particularly key for the Fed, which is dependent on official government data to guide policy decisions.\n    <\/p>\n<p class=\"paragraph-elevate inline-placeholder vossi-paragraph\" data-uri=\"cms.cnn.com\/_components\/paragraph\/instances\/cmgaw6tqy0032356naq2pcvkn@published\" data-editable=\"text\" data-component-name=\"paragraph\" data-article-gutter=\"true\">\n            With data set to be postponed, the Fed is \u201cflying blind,\u201d according to David Seif, chief economist at Nomura.\n    <\/p>\n<p class=\"paragraph-elevate inline-placeholder vossi-paragraph\" data-uri=\"cms.cnn.com\/_components\/paragraph\/instances\/cmgaw6tqy0033356nfadinukq@published\" data-editable=\"text\" data-component-name=\"paragraph\" data-article-gutter=\"true\">\n            \u201cIf a shutdown \u2026 ends up being one of the historically longer ones, the Fed may have no additional top-tier data, and few data of any kind, between its 17 September and 29 October rate decisions,\u201d Seif said in a note.\n    <\/p>\n","protected":false},"excerpt":{"rendered":"New York \u00a0\u2014\u00a0 Stocks ended the day mixed on Friday as investors continue to brush off concerns about&hellip;\n","protected":false},"author":2,"featured_media":202280,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[37],"tags":[28,112],"class_list":["post-202279","post","type-post","status-publish","format-standard","has-post-thumbnail","category-markets","tag-business","tag-markets"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/202279","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=202279"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/202279\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/202280"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=202279"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=202279"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=202279"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}