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Dow Ends Higher, Nasdaq Slips in Mixed Trading

Stocks end mixed as Wall Street looks to rebound from Tuesday's selloff amid concern about a potential U.S. government shutdown.

Stocks ended mixed Wednesday as investors looked to claw back the previous session's declines while tracking debt-ceiling negotiations and the rolling global power crisis.

The Dow Jones Industrial Average, which turned negative for the month after Tuesday's 570-point slump, finished up 90 points, or 0.26%, to 34,390 while the S&P 500 advanced 0.16%. The tech-heavy Nasdaq ended down 0.24%. 

Benchmark 10-year note yields slipped to 1.53% after touching a high of 1.567% Tuesday.

Democrats scheduled a House vote to raise the debt ceiling and are preparing a separate spending bill to head off a government shutdown looming at midnight on Thursday, according to the New York Times.

Louis Navellier, founder and chief investment officer of Navellier & Associates, said political wrangling surrounding infrastructure spending and the failure to reach a deal — any kind of deal — could have a drag on the markets during the fourth quarter. 

“Over the last 20 years, the Dow Jones Industrials gained 4.5% in the fourth quarter versus a cumulative 1.2% gain in the first three quarters combined, according to Bespoke Investment Group, but that adverse conditions in Washington in 2021 could challenge this track record,” he said.

JPMorgan  (JPM) - Get Free Report Chief Executive Jamie Dimon said he and his colleagues were preparing for a "potentially catastrophic" failure to raise the debt ceiling this week. Senate lawmakers continue to bicker into the final hours ahead of tomorrow's deadline.

Boeing  (BA) - Get Free Report led the Dow after the aerospace giant said a 737 Max test in China last month "went off without a hitch." That could provide authorities with enough data to return the aircraft to service in the world's biggest aviation market.

Micron  (MU) - Get Free Report shares fell after one of the world's biggest memory chipmakers said supply-chain disruptions in the tech sector would hit its current-quarter sales. Analysts at JPMorgan and Mizuho last week cut their price targets on the company.

Dollar Tree  (DLTR) - Get Free Report surged the most in more than two years Wednesday after the discount retailer said it would begin testing the sale of higher-priced items in some of its stores and boosted its share buyback program to $2.5 billion. 

West Texas Intermediate oil futures for November delivery were off marginally to $74.66 a barrel while Brent contracts for the same month, the global pricing benchmark, were down nearly 1% lower at $78.66 per barrel.

Morgan Stanley said in a report that Brent crude at $80 a barrel would be “destructive” to demand. 

"Oil prices have disconnected from the marginal cost of supply. They are traveling to the level where demand destruction kicks in," Morgan Stanley said.

More Market Recaps For the Week of 9/27:

9/27 - Dow Ends Higher on Rising Oil, Financial Stocks

9/28 - Dow Ends Down Over 500 Points, Nasdaq Has Worst Close Since March

9/30 - Stocks Mixed As Brutal September Comes To A Close; Retail Pounded On Supply Chain Worries

10/1 - Merck Leads Dow Higher On COVID Treatment Hopes, Treasury Yields Holding Down Tech