S&P 500 closes above 6,700 for first time as traders bet on short-lived shutdown
The S&P 500 closed at a record high on Wednesday as traders were hopeful that a U.S. federal government shutdown would be brief and possibly have little impact on the economy.
The broad market index gained 0.34% to close at 6,711.20. Earlier, it had hit a new all-time intraday high. The Nasdaq Composite rose 0.42% to settle at 22,755.16, while the Dow Jones Industrial Average traded up 43.21 points, or 0.09%, to finish at 46,441.10.
It was a notable turnaround. At its low of the day, the S&P 500 was down 0.5%. The index’s move higher was led by a boost in health-care stocks, with big gains in Regeneron Pharmaceuticals and Moderna. Markets are coming off a banner month that saw the S&P 500 rise more than 3.5%.
The U.S. government shut down after attempts made by the Republican-controlled Senate to secure a temporary spending bill failed Tuesday. Democrats are hoping to use the measure to codify an extension of health care tax credits for millions of Americans.
The stock market has typically glided through previous government shutdowns, but this one could be riskier given the slew of economic factors at play. Investors remain worried about a slowing labor market and inflation risks as well as historically elevated stock valuations and market concentration levels.
Source : Cnbc.com
