U.S. Stocks Close: The Three Major Indexes Closed Mixed as the Market Bets on an Imminent End to the U.S. Government Shutdown

On Tuesday, Eastern Time in the United States, the three major U.S. stock indexes closed with mixed results. The market expects the U.S. government shutdown to end soon, and the Dow Jones Industrial Average hit a new record high. Meanwhile, artificial intelligence (AI) concept stocks such as NVIDIA tumbled collectively due to concerns about overvaluation.
One of the factors driving up the Dow Jones and the S&P indexes is that all members of the House of Representatives returned to Washington after a 53-day recess, preparing to vote on a bill to end the government shutdown.
The Senate passed a budget bill late on Monday to end the government shutdown and sent the bill to the House of Representatives for deliberation. This interim budget bill does not include the extension of subsidies for the Affordable Care Act requested by the Democrats. Instead, it plans to hold a separate vote on relevant tax credit issues in December.
Bill Fitzpatrick, a portfolio manager at Logan Capital Management, said, "There is a price to pay for political dysfunction, not only in the United States but also globally. Yes, we will reach a solution, but political polarization remains severe, which is one of the many factors that prompt investors to turn to low-valuation sectors."
Sam Stovall, the chief investment strategist at CFRA, analyzed, "The market generally believes that the shutdown is about to end. Employees will return to work, and economic data will resume being released. The long - standing policy uncertainty will be completely eliminated."
Meanwhile, SoftBank Group, a Japanese technology investment giant, disclosed that it had cleared its NVIDIA shares and cashed out $5.8 billion, intensifying concerns that the AI boom may have peaked.
In addition, CoreWeave, a cloud - computing company invested in by NVIDIA, lowered its full - year revenue guidance due to the slow construction of data centers, further amplifying the selling pressure on AI concept stocks.
Market sentiment was also dragged down by employment data. The latest data released by ADP showed that in the four weeks ending October 25, the U.S. private sector lost an average of 11,250 jobs per week.
Moreover, U.S. President Trump warned that day that if the Supreme Court rules that his invocation of the "Emergency Powers Act" to impose large - scale tariffs is illegal, the U.S. economy and national security will face "catastrophic consequences."