[New York Stock Exchange] Slight Gains Despite Second Day of Shutdown... All Three Major Indices Hit Record Highs

Investors Expect Early Resolution of Shutdown
September Jobs Report Delayed Due to Department of Labor Suspension
Tesla Drops Over 5% Amid End of Federal EV Tax Credits

On October 2 (local time), all three major indices on the New York Stock Exchange closed slightly higher. Despite the U.S. federal government shutdown entering its second day, investors maintained a positive outlook on the market, pushing all three indices to new all-time highs.

On this day at the New York Stock Exchange, the Dow Jones Industrial Average, which focuses on blue-chip stocks, closed at 46,519.72, up 78.62 points (0.17%) from the previous trading day. The S&P 500 Index, which tracks large-cap stocks, rose 4.15 points (0.06%) to close at 6,715.35, and the Nasdaq Index, which is centered on technology stocks, jumped 88.894 points (0.39%) to finish at 22,844.051. With this, all three major indices once again set new record highs.

Investor sentiment did not significantly weaken despite the government shutdown continuing for a second day. Previously, after the U.S. Congress failed to pass a budget, the federal government entered a shutdown at 12:01 a.m. The opposition Democratic Party insists that the temporary budget bill must include an extension of subsidies for Obamacare, but the Republican Party opposes this, resulting in a lack of agreement.

U.S. President Donald Trump pressured the Democrats over the situation, saying they had provided an "unprecedented opportunity" to reduce federal agency staff. U.S. Treasury Secretary Scott Besant warned in a CNBC interview that halting funding for the federal government "could hurt GDP, growth, and American workers."

However, the market atmosphere leans toward the expectation that, as in previous cases, the shutdown will be resolved quickly.

Paul Christopher, Head of Global Investment Strategy at Wells Fargo Investment Institute, stated, "While government shutdowns have a somewhat negative impact on the economy at the time they occur, the effects eventually disappear as the federal bureaucracy resumes operations." He added, "Over the next 12 to 15 months, the gradual reduction of tariff uncertainty, large-scale tax benefits for corporations and individuals, regulatory easing, and lower borrowing costs due to Federal Reserve rate cuts will be the main drivers of the economy and investment returns."

However, due to the suspension of the Department of Labor's work, the September employment report scheduled for release on the 3rd has inevitably been delayed. There are also concerns that if the shutdown is prolonged, the Federal Reserve may have to make its decision on the benchmark interest rate on the 29th without key employment indicators.

U.S. Treasury yields remained steady. The 10-year note, a global benchmark for bond yields, stood at 4.08%, while the 2-year note, which is sensitive to monetary policy, hovered around 3.54%.

By stock, Nvidia rose 0.88%. Apple gained 0.66%, while Microsoft declined 0.76%. Tesla plunged 5.11%. Although the company announced record-high vehicle deliveries for the third quarter, the stock price fell as the surge was seen as a temporary increase ahead of the expiration of U.S. federal electric vehicle tax credits at the end of last month.