NEW YORK (Oct. 2, 2025) — U.S. stock indexes closed higher Thursday, with the Nasdaq leading gains on the back of strength in large-cap technology shares. Investor sentiment remained positive despite the ongoing federal government shutdown, which continues to delay key economic data releases.
The S&P 500 rose 0.1% to close at 6,715.35, logging its 30th record close this year. The Dow Jones Industrial Average added 0.2% to finish at 46,519.72, while the Nasdaq Composite advanced 0.4% to settle at 22,844.05, supported by semiconductor and software stocks. The Russell 2000, which tracks smaller companies, climbed 0.7%.
Technology Leads, Energy Lags
Technology was the strongest-performing sector in the S&P 500, buoyed by gains in artificial intelligence and chipmakers. Shares of Nvidia Corp. (NVDA) rose to an all-time high, continuing a months-long rally tied to strong demand for AI computing power.
Fair Isaac Corp. (FICO) surged more than 18% after announcing a new credit evaluation model that bypasses traditional credit bureaus. In contrast, shares of Equifax, TransUnion, and Experian declined as investors weighed the potential impact on their business models.
Occidental Petroleum Corp. (OXY) dropped 7.3% following the sale of a chemical unit to Berkshire Hathaway, raising concerns about the company’s future cash flow strategy. The energy sector broadly underperformed as crude oil prices retreated from recent highs.
Tesla Inc. (TSLA) ended the day lower, despite beating third-quarter delivery expectations with 497,099 vehicles delivered, which exceeded analyst estimates of around 454,000. The stock reversed earlier gains as investors questioned whether margins can hold up amid price competition.
Shutdown Delays Data, Not Market Optimism
The ongoing U.S. government shutdown has temporarily halted the release of several economic indicators, including labor market and factory activity data. Despite the uncertainty, investors appear focused on corporate performance and technological innovation.
Economists warn that a prolonged shutdown could affect fourth-quarter GDP, with some estimating a weekly drag of 0.1 to 0.2 percentage points. However, equity markets so far have taken the disruption in stride.
Outlook Cautious Amid Record Highs
Despite reaching multiple record highs, analysts remain cautious. Technical indicators suggest declining sector correlations — a potential indication of overconcentration in a narrow group of stocks. Some strategists say this could precede a broader pullback if economic fundamentals weaken or if investor sentiment shifts.
All eyes will be on upcoming earnings reports next week, which may help determine whether the recent rally can broaden or begin to show signs of fatigue.
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Ten years of experience reporting. From car chases and courtroom verdicts to House fires, Holsford thrives during breaking news and finds it a privilege to help drive the conversation in Rockland County and the Greater New York Area. Born in San Bernardino, Thomas is a New York boy at heart. He received his bachelor’s degree in broadcast journalism, specializing in political science and sociology, from the University of Illinois
