U.S. Markets Hit New High Despite Shutdown and Job Surprise
U.S. markets closed higher on Wednesday, with the S&P 500 (SP500) reaching a new record high, despite a government shutdown and a surprise drop in private sector jobs.
The ADP report showed a decrease of 32K jobs near me in the private sector, contrary to economist expectations of a 50K increase. However, this did not deter investors, as the S&P 500 (SP500) climbed up by 0.3% on the day, closing at over 6,700, a new record high. The tech-focused Nasdaq Composite (COMP:IND) also ended higher by 0.4%. Seven of the 11 S&P sectors closed in negative territory, with Materials struggling the most. Health Care was the top performer of the session.
U.S. Treasury yields pushed lower, with the U.S. 10-year Treasury yield (US10Y) moving down to 4.10% and the U.S. 2-year Treasury yield (US2Y) pushing down to 3.54%. This came as the U.S. government shutdown commenced at midnight on Wednesday, suspending all but essential operations at agencies. The blue-chip Dow (DJI) finished up by 0.1%.
Despite the government shutdown and the unexpected decrease in jobs near me, U.S. markets ended the day higher. The S&P 500 (SP500) closed at a new record high, reflecting investors' confidence in the market's resilience. Meanwhile, U.S. Treasury yields moved lower, suggesting a cautious outlook among investors.
