Stock Market Today - Nasdaq and S&P 500 Break Records, Dow Falls as Shutdown and AI Frenzy Collide

Nasdaq and S&P 500 Push Higher as Dow Jones Slides Under Shutdown Pressure

U.S. equities remain split as technology strength carries growth indices higher while cyclical benchmarks face political drag. The S&P 500 (^GSPC) held steady at 6,703 after touching a fresh intraday high of 6,712, marking its 29th record close of the year. The Nasdaq Composite (^IXIC) climbed 0.14% to 22,787, extending a year-to-date gain above 37%, driven by the relentless bid for artificial intelligence leaders. In contrast, the Dow Jones Industrial Average (^DJI) slipped 96 points, or 0.2%, to 46,366, as financials and industrials underperformed. The divergence highlights how AI enthusiasm is offsetting the market impact of a U.S. government shutdown now in its second day.

Treasury Secretary Scott Bessent warned the closure could hit GDP growth, and President Donald Trump threatened permanent layoffs of federal workers if funding negotiations drag on. Despite these risks, investors largely shrugged off Washington’s dysfunction, noting that historically shutdowns have produced only minor equity volatility. Still, with the release of September nonfarm payrolls blocked, the absence of official labor data injects uncertainty into the Federal Reserve’s October 29 policy decision.

Nvidia, AMD and Global Chip Stocks Extend AI-Fueled Rally

Tech remains the market’s locomotive, and Nvidia (NVDA) continues to dominate sentiment. Shares jumped above $191 on Thursday, a new all-time high, giving the company a year-to-date gain of more than 41%. The stock’s surge followed news of a $100 billion investment in OpenAI’s infrastructure and a $5 billion chip collaboration with Intel (INTC). Nvidia also joined forces with Accel and other investors to build out the U.K. AI startup ecosystem, further anchoring its role at the center of the generative AI wave.

The rally rippled across the sector: Advanced Micro Devices (AMD) gained 3% to trade near $133, Broadcom (AVGO) advanced 2% to $1,470, and SK Hynix (000660.KS) soared 10% in Seoul after partnering with OpenAI’s Stargate data-center project. Samsung Electronics (005930.KS) added 3.5% to the momentum. Combined, global chipmakers added more than $200 billion in market capitalization in a single session, pushing the Philadelphia Semiconductor Index (^SOX) to 6,595.54, up 1.47% on the day.

Tesla Beats Delivery Estimates but Stock Retreats After Early Pop

Electric vehicle giant Tesla (TSLA) posted Q3 deliveries of 497,099 vehicles, smashing consensus forecasts of 447,600 and topping last year’s 462,890. Production hit 447,450 units, while energy storage deployment reached a record 12.5 GWh. Investors initially rewarded the beat with a 3% premarket jump, but momentum faded as shares reversed to $454, down 1.1% by mid-session.

The stock’s retreat reflects skepticism over whether demand will hold after the expiration of the $7,500 federal EV tax credit. Tesla’s market cap still hovers around $1.4 trillion, but the looming political headwinds and intensifying European competition cast doubt on whether its valuation premium can be sustained into year-end.

Pharmaceutical Sector Extends Surge on TrumpRx Drug Pricing Deal

Healthcare provided ballast for Wall Street this week as Big Pharma rallied on policy clarity. Pfizer (PFE) surged 14% this week after the Trump administration struck a direct-to-consumer pricing pact, launching the “TrumpRx” platform. The agreement ensures discounted prices on select drugs, reigniting investor enthusiasm. Merck (MRK) gained 7.4% on Wednesday alone, while Bristol Myers Squibb (BMY) advanced 5.2%. Biogen (BIIB) jumped 10% during regular trading and added another 2% after hours.

The sector’s strength has helped the Nasdaq Biotechnology Index (NBI) stabilize, with investors treating it as a defensive hedge in the face of shutdown-driven volatility.

Berkshire Hathaway Executes $9.7 Billion Occidental Deal

In his largest acquisition since 2022, Warren Buffett’s Berkshire Hathaway (BRK.B, BRK.A) agreed to purchase Occidental Petroleum’s (OXY) OxyChem unit for $9.7 billion in cash. Occidental shares initially rose 2% but slid to $44.81 by midday, down nearly 6%, as investors considered the implications of divesting its chemical business.

For Berkshire, the deal adds another industrial chemical platform alongside Lubrizol, acquired in 2011 for $9 billion. With a cash pile exceeding $340 billion, Buffett has faced criticism for underutilizing capital in a hot M&A market. This deal, one of the largest of 2025, underscores Berkshire’s preference for cash-generative, steady-margin assets.

Fair Isaac Surges, Credit Bureaus Slammed by Direct-to-Lender Strategy

Fair Isaac Corporation (FICO) shocked the market with a 26% surge to $1,915 after announcing a new direct-to-lender distribution model for its FICO credit scores. By charging $4.95 per score and $33 per closed loan, FICO will bypass resellers such as Equifax (EFX) and TransUnion (TRU), which tumbled 12% each on the news. London-listed Experian (EXPN.L) shed 5%.

The shift could permanently reshape mortgage underwriting economics and inject volatility into the credit-rating ecosystem. FICO’s rally effectively erased nearly all of its declines since July, reinstating the firm as the undisputed leader in credit analytics.

Amazon Faces Market Pressure as Cloud Competition Intensifies

Amazon (AMZN) fell to $220, down 0.25%, as its AWS cloud unit faces intensifying competition from Microsoft Azure (MSFT), Google Cloud (GOOGL), and Oracle (ORCL). Investors are growing concerned that AWS’s once-unassailable lead in AI workloads is slipping, with rivals aggressively targeting hyperscale infrastructure contracts.

Valuation reflects the market’s caution. Amazon trades at 25x forward earnings, the steepest discount in its history versus the Nasdaq 100 (^NDX) at 27x. Oracle trades at 40x, its highest multiple since the dot-com era, while Microsoft sits at 32x. Alphabet’s 22x is below its 10-year average, underscoring how Amazon’s cloud growth slowdown is forcing a relative de-rating.

European Equities Climb on Autos and Luxury; Asia Rallies on Chips

In Milan, Stellantis (STLA.MI) gained after September auto registrations surged, while Brunello Cucinelli (BC.MI) rose on stronger Q3 sales. Ferrari (RACE.MI) advanced as HSBC raised its price target to €470 from €413. By contrast, Eni (ENI.MI) slipped after Intesa Sanpaolo downgraded to Neutral with a €15.20 target. Banking news also dominated: Moody’s raised MPS (BMPS.MI) to Baa1, while Unicredit (UCG.MI) weakened on confirmation of reduced Russian exposure, a potential 70-basis-point capital hit.

In Asia, AI momentum carried equity markets higher. Samsung Electronics (005930.KS) rallied 3.5% and SK Hynix (000660.KS) jumped 9% after securing contracts with OpenAI. Tokyo’s Nikkei 225 (^N225) posted gains, while Chinese equities lagged despite Alibaba (BABA, 9988.HK) climbing 2% on a JPMorgan price target upgrade.

Gold Near Record Levels, Oil Flat, Dollar Edges Higher

Gold futures briefly touched $3,921 before retreating to $3,863, still up 46% year-to-date. Spot prices traded at $3,871.30, with analysts at Goldman Sachs reiterating their bullish stance on structurally higher central bank demand. The Dollar Index (DXY) rose 0.19% to 95.20, while the 10-year Treasury yield remained pinned at 4.111%.

Energy markets were calm: Brent (BZ=F) traded at $65.39 per barrel and WTI (CL=F) at $61.80, both flat on the session. Despite global trade disputes and weaker demand data, crude remains resilient, holding above $60.

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