Wall Street wrapped up a turbulent week on a mixed note Friday, with the Nasdaq closing lower while the S&P 500 and Dow Jones Industrial Average managed modest gains in late trading. The recovery came as reports suggested progress in resolving the longest federal government shutdown in U.S. history, offering a glimmer of relief to anxious investors.
After spending most of the day in negative territory, the Dow rose 74.80 points (0.16%) to 46,987.10, while the S&P 500 edged up 8.48 points (0.13%) to 6,728.80. The Nasdaq Composite, however, slipped 49.45 points (0.21%) to 23,004.54, weighed down by renewed selling in overvalued tech stocks.
“A resolution to the shutdown will clearly improve sentiment, particularly at a time when the margin of error is narrow,” said Terry Sandven, Chief Equity Strategist at U.S. Bank Wealth Management. “With stocks at all-time highs and valuations stretched, removing this uncertainty helps investors breathe a little easier.”
The week saw all three major indexes lose ground, with the Nasdaq posting its steepest decline since early April amid growing concerns over inflated valuations of AI-related momentum stocks — the same sector that had powered much of this year’s rally.
Adding to investor unease, the University of Michigan’s Consumer Sentiment Index for November fell to its lowest level in over three years, reflecting the economic toll of the shutdown. The lack of fresh government data has also complicated the Federal Reserve’s policy outlook, with analysts warning of “flying in the dark.”
“The absence of key indicators due to the shutdown adds a layer of uncertainty,” noted Ryan Detrick, Chief Market Strategist at Carson Group. “Earnings have been strong, but the housing market is soft, and labor conditions are clearly deteriorating.”
In corporate news, Tesla shareholders approved Elon Musk’s record-breaking compensation package even as shares slipped 3.7%. Microchip Technology fell 5.2% after issuing a weak sales forecast, while Expedia jumped 17.6% following robust B2B bookings. Block tumbled 7.7%, and Take-Two Interactive slid 8.1% after announcing a delay of Grand Theft Auto VI to November 2026.
Despite the volatility, about 83% of S&P 500 companies reporting so far have beaten earnings estimates, with overall Q3 earnings growth now projected at 16.8% year-on-year, up from 8% previously.
Market breadth remained positive — advancing issues outnumbered decliners by a 1.44-to-1 margin on the NYSE and 1.1-to-1 on the Nasdaq. Trading volume stood at 20.15 billion shares, slightly below the 20-day average.
With the government shutdown still casting a shadow over economic visibility, investors are bracing for continued swings — but for now, signs of progress in Washington are keeping optimism alive on Wall Street.