Wall Street closed mixed on Friday, pulled up by consumer and energy stocks. While the ongoing tech slump weighed on markets, losses were pared by optimism surrounding the possibility of the government shutdown coming to an end. Two of the three benchmark indexes finished in the green, while one finished in the red.
The Dow Jones Industrial Average (DJI) rose 0.2%, or 74.80 points, to close at 46,987.1. Twenty components of the 30-stock index ended in positive territory, while 10 ended in the negative.
The tech-heavy Nasdaq Composite lost 49.45 points, or 0.2%, to close at 23,004.54.
The S&P 500 gained 8.48 points, or 0.1%, to close at 6,728.8. Nine of the 11 broad sectors of the benchmark index closed in the green. The Consumer Staples Select Sector SPDR (XLP), the Energy Select Sector SPDR (XLE) and the Utilities Select Sector SPDR (XLU) advanced 1.5%, 1.4% and 1.4% respectively, while the Technology Select Sector SPDR (XLK) declined 0.4%.
The fear gauge CBOE Volatility Index (VIX) decreased 2.2% to 19.1. A total of 20.2 billion shares were traded on Friday, lower than the last 20-session average of 20.8 billion. Advancers outnumbered decliners by a 1.44-to-1 ratio on the NYSE and by 1.1-to-1 on the Nasdaq.
On Friday, investor sentiment on Wall Street was given a shot in the arm by growing optimism that the U.S. government shutdown could be nearing its end. Markets, which had previously wrestled with heightened uncertainty from the longest U.S. federal shutdown in history, demonstrated visible relief as reports emerged of bipartisan progress in Congress on a funding resolution.
Traders interpreted signs of a potential breakthrough in Washington as removing one of the major overhangs on the economy, namely, the risk of a prolonged shutdown impacting federal operations, air travel and government-spending-driven sectors. While indexes had earlier traded lower in the session amid broad caution, the late-day shift higher reflected positively across sectors.
However, the relief was tempered by the backdrop of elevated valuations, especially in growth-oriented sectors, and lingering vulnerabilities in consumer confidence and economic data. While Friday’s session did not herald a full-throated risk-on rally, it did show clear signs that investors welcomed developments in Washington as a strength-enhancing factor. The hopeful tone around the end of the shutdown helped stem losses and partially restored appetite, underscoring how political dynamics remain deeply entwined with market moods. Consumer Staples, energy and utilities led the gains while the gloom around over-valued tech prevailed.