Tech Stocks Drive Nasdaq to New Heights Amid U.S. Government Shutdown

The Nasdaq soared to a record closing high on Thursday, buoyed by robust performance in the tech sector despite the U.S. government shutdown. The S&P 500 also closed at a record, though by a narrow margin, as investors reviewed private labor market data amidst the political standoff.

Tech giants like Nvidia and Broadcom propelled the Nasdaq, marking a valuation peak not seen since 2020. In the absence of official government data due to the shutdown, investors turned to alternative sources, with a report from Challenger, Gray & Christmas noting fewer layoffs in September.

The shutdown's impact saw Tesla's stocks reverse after potential tax credit risks were highlighted, dragging down consumer discretionary on the S&P 500. Contributing to market dynamics, Occidental Petroleum's divestiture announcement led to stock fluctuation, underscoring uncertainties surrounding economic stability.