Wall Street closed mixed on Wednesday, pulled up by healthcare and financial stocks. Optimism over a potential end to the U.S. government shutdown continued to boost sectors. Oil prices slid on rising U.S. stockpiles. Two of the three benchmark indexes finished in the green, while one ended in red.
How Did the Benchmarks Perform?
The Dow Jones Industrial Average (DJI) rose 0.7%, or 326.86 points, to close at 48,254.82. Twenty-one components of the 30-stock index ended in positive territory, eight ended in the negative, while one remained unchanged.
The tech-heavy Nasdaq Composite slid 61.84 points, or 0.3%, to close at 23,406.46.
The S&P 500 gained 4.31 points, or less than 0.1%, to close at 6,850.92. Six of the 11 broad sectors of the benchmark index closed in the green. The Health Care Select Sector SPDR (XLV), the Financials Select Sector SPDR (XLF) and the Materials Select Sector SPDR (XLE) advanced 1.4%, 0.9% and 0.7% respectively, while the Energy Select Sector SPDR (XLE) declined 1.4%.
The fear gauge CBOE Volatility Index (VIX) increased 1.3% to 17.51. A total of 17.2 billion shares were traded on Wednesday, lower than the last 20-session average of 20.5 billion. Advancers outnumbered decliners by a 1.5-to-1 ratio on the S&P 500.
Shutdown Relief and Potential End to Data Void Lift Wall Street
The prolonged government shutdown created a data blackout, with crucial indicators like October’s jobs and inflation reports delayed or suspended, depriving investors and the Fed of key economic guidance. At this juncture, however, anticipation of figures resuming and signs of a cooling labor market are strengthening expectations for central bank rate cuts.
Alongside the data void, optimism grew over the potential end of the shutdown itself. The 43-day standoff had disrupted everything from federal payrolls to air-traffic control systems, but hopes of resolution encouraged investors to rotate back into cyclical and growth-sensitive sectors. Confidence strengthened further after the U.S. House of Representatives approved a bill to end the shutdown, pending President Trump’s signature.
The shutdown’s end promised to remove a major economic overhang, while the lack of fresh data sustained expectations of a dovish monetary stance. Combined with stronger-than-expected corporate earnings, the overall mood was upbeat. Still, a note of caution persisted, without concrete data, uncertainty remained over the timing and scale of potential rate cuts, and whether reopening the government merely postponed deeper economic challenges. On Wednesday, Wall Street’s momentum reflected not immediate strength but relief, renewed hope and the easing of political and operational headwinds. Healthcare extended its prior gains, while financials and materials also advanced.
Consequently, shares of AbbVie Inc. ABBV and The Goldman Sachs Group, Inc. GS jumped 3.6% and 3.5%, respectively. Both currently carry a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Oil Prices Fall as Rising US Stockpiles Deepen Oversupply Concerns
Oil prices tumbled more than $2/barrel on Wednesday after an OPEC report projected that global oil supply will align with demand by 2026, reversing its earlier outlook for a supply shortfall. Brent crude dropped $2.45, or 3.76%, to settle at $62.71/barrel. WTI crude declined $2.55, or 4.18%, to close at $58.49/barrel. The revised OPEC forecast sparked renewed concerns about future oversupply, pressuring prices across energy markets.
No economic data was released on Wednesday.
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The Goldman Sachs Group, Inc. (GS): Free Stock Analysis Report AbbVie Inc. (ABBV): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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