Wall Street extends record run as Shutdown delays key data, Fed

Wall Street extends record run as Shutdown delays key data, Fed in Focus

U.S. stocks closed at record highs on Oct. 2, led by tech, with futures extending gains the next day. Optimism is supported by expectations of Fed rate cuts, though the government shutdown—now in its third day—has delayed key data, including nonfarm payrolls, leaving traders reliant on weaker private labor surveys.

With official releases on hold, ISM and S&P Global PMI data will carry added weight, while Fed officials’ speeches could sway rate-cut bets. While momentum points to weekly gains, the rally remains fragile as political gridlock, hawkish commentary, or profit-taking could trigger volatility.

Market Implications:
Supportive factors: Tech sector strength, softer labor signals, and rate-cut expectations.
Risks: Prolonged shutdown delaying visibility on economic conditions, potential hawkish Fed commentary, and profit-taking at record levels.
Outlook: If momentum holds, the S&P 500, Dow, and Nasdaq are positioned to close the week higher, though volatility is likely to remain elevated until greater policy clarity emerges.