Dow closes at record high; traders bet against government shutdown
The Dow Jones Industrial Average closed at a record-high on Tuesday. This was boosted by progress in ending the longest U.S. Government shutdown. Nvidia, and other companies related to artificial intelligence, fell due to renewed concerns over high valuations.
The Polymarket betting platform has fully priced in a resolution for this week, as members of the U.S. House of Representatives returned to Washington, after a break of 53 days, for a possible vote that would end the government shutdown.
"Expectations are the shutdown will be over. "We will see people returning to work and economic data released again, and the uncertainty will be gone," said CFRA's Chief Investment Strategist Sam Stovall. SoftBank Group, a Japanese investor in technology, disclosed that it had sold Nvidia's shares to the company for $5.8 Billion. The chipmaker then lost ground on Tuesday. CoreWeave, a cloud computing company backed by Nvidia, saw its shares fall after it lowered its revenue forecast for the year due to problems in data centers.
A weekly update from ADP's preliminaries payroll figures showed that private employers lost an average of 11,250 positions a week in the four weeks ending October 25. U.S. president Donald Trump warned that if the Supreme Court rules against his use an emergency powers act to impose sweeping duties, it would be a disaster for economics and national security.
The preliminary data shows that the S&P 500 rose 14.69 points or 0.22% to 6,847.12 while the Nasdaq Composite fell 54.04 or 0.25% to 23,468.40. The Dow Jones Industrial Average increased 559.33, or 1.19% to 47,934.46.
The Dow Jones Industrial Average is expected to rise by 13% between now and 2025.
Occidental Petroleum was up for most of the session as the shale producer exceeded expectations on third-quarter profits. Paramount Skydance soared after the newly-merged media company announced that it would be cutting costs and investing $1.5 billion into its streaming and studio segments.
Veterans Day is a holiday in the United States. The bond market will be closed.
(source: Reuters)