Dow Jones and S&P500: US Stocks Firm as Shutdown Concerns Take a Back Seat

Will the Federal Reserve Shift Course After ADP Miss?

The ADP National Employment Report showed private payrolls fell by the most in over two years, reinforcing speculation that the Fed may have to pivot sooner than expected. Traders are increasing bets on a 25-basis-point cut, seeing evidence that the labor market is starting to cool. While the Fed has kept a hawkish tone, this data point gives markets a reason to price in policy easing without recession fears dominating the narrative—at least for now.

Is the Government Shutdown Losing Its Market Impact?

Despite headlines around a looming federal shutdown, the market response has been measured. Historically, shutdowns haven’t sparked major selloffs, and Wednesday’s recovery suggests traders are treating it as a manageable risk. However, delays to key economic reports—especially Friday’s nonfarm payrolls—could complicate Fed decision-making. For now, the shutdown risk appears priced in unless the situation drags well into October.

What’s Moving in Key Sectors and Stocks?

Healthcare led the S&P 500, gaining 1.4%, boosted by strong upside in Moderna and Regeneron—each rising over 6.3%.

Tech and communications names weighed early, with Meta down 2.8% and Alphabet off 1.1%, though losses have stabilized.

Nvidia dipped 0.9%. Nike added 3.4% on upbeat quarterly sales, and AES surged 13.3% after a takeover report involving BlackRock’s infrastructure arm.

Corteva fell 7.2% on plans to split its seed and pesticide units, while GE Vernova dropped 2.1% following a downgrade.